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Investing in Your 20s and 30s For Dummies by Eric Tyson

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Chapter 1

Making Sense of Your Investing Options

IN THIS CHAPTER

Comparing common investments

Explaining investment terminology — risks and returns

Deciphering the gobbledygook of professionals, credentials, and investment companies

So many fields and disciplines are packed full of jargon. Some of this is the result of “progress” and advances, and some of it is caused by workers in the field not going out of their way enough to explain and define things.

In this chapter, I give you the lay of the land regarding the enormous numbers of choices and foreign-sounding terminology that await you in the world of investing. I also explain the types of companies that offer investments and their strengths and weaknesses. And should you want to hire some investing help, I also detail the various professionals pitching their services to you and the common credentials they hawk to convince you of their expertise.

Growing Your Money in Ownership Investments

The most exciting thing about investing during your younger adult years is that you can be more aggressive with money that you’ve earmarked to help you accomplish long-term goals. To achieve typical longer-term financial goals, such as retiring, the money that you save and invest generally needs to grow at a rate much faster than the rate of inflation. If you put your money in a bank account that pays little or no interest, for example, you’re likely to fall short of your goals.

Ownership investments are investments like stocks, where ...

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