Investing in Your 20s & 30s For Dummies, 3rd Edition

Introduction

Investing offers so many possibilities and so many choices. Your young-adult years, which at least for the purposes of this book I define as your 20s and 30s, are filled with so much promise and potential. Your career, your interests, your personal life, and your family and friends all compete for your time and attention.

Most folks work upward of 2,000 hours per year earning a living. Managing the money that passes through their hands is an important task, one most people aren’t trained to do.

Earning money generally takes a lot of work. Managing your personal finances and saving money take discipline and sacrifice. When you have money to invest, you want to do the best you can so you earn a decent return without ending up in failed investments.

About This Book

I designed and wrote this book to help you with the important and challenging task of investing. Your young adult years are a crucial and ideal time to lay the best foundation for investing wisely. After all, some of the investments you make now and in the near future will have decades to grow and multiply.

I talk some simple numbers here to get you excited and motivated. Stocks in the United States historically have returned an average of about 9 percent per year. At that rate of return, you will double your money every 8 years. So, in 16 years, your money will be up four times, in 24 years, your money will be up eight times and in 32 years, you money will be up 16 times. Wow! This means for every $1,000 ...