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Tips for Investment in Early Age of Twenties

by: Bigsaver | last updated: August 21, 2009
Category: Personal Finance | Tags: money investing tips, Investment guide, Investment tips, innvestment, guide for investment
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Tips for Investment in Early Age of Twenties These are the early years when many people are relatively new to the workforce and are still renters. While some have formed a permanent relationship, many don't have children. Home ownership and family are still in the future.

Investment Tips

For this group the main financial focus is usually on saving a deposit for a home, an investment that has particular appeal due to its lifestyle benefits and capital gains tax-free status.

The first step for many will be to get their credit card debt under control and then eliminate it. Only then will they be in a position to start building wealth rather than simply paying for past consumption.

With interest rates having stabilised at relatively low levels and property prices still slipping, this age group stands to gain by saving for a deposit for a home so as to be able to buy when the market is weak.

Their main challenge will be to decide whether or not to try to supercharge their savings growth by diverting funds into a regular savings plan that invests in equity funds.

Callinan says building a deposit through investing in equity funds is a good strategy, but only if you can accept the risk that there could be a few years of flat returns.'You also have to have a time horizon of at least five years, to give the investments time to perform,' she adds.

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