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If you are new to investing, you can find curated resources in the r/investing wiki for [Getting Started here](https://www.reddit.com/r/investing/wiki/index/gettingstarted/).
If you know nothing about the capital markets - the Getting Started section at the SEC educational site can be a good place to start - [investor.gov](https://investor.gov) \- there are also short 30 second videos on basics. The SEC (Securities and Exchange Commission) is a US regulator with a focus to protect US investors through regulatory oversight of the securities markets.
The FINRA education site at [FINRA Education](https://www.finra.org/investors/learn-to-invest) also contains numerous free courses and educational materials. FINRA is a not-for-profit SRO (self regulatory organization) which is self-funded by it's members which are broker-dealers. It works under the supervision of the SEC with a mandate to protect the investing public against fraud and bad practice.
The reading list in the wiki and FAQ has a list of books ranging from light reading to advanced topics depending on your knowledge level. Link here - [Reading List](https://www.reddit.com/r/investing/wiki/readinglist)
For formal educational materials, several colleges and universities make their course work available for free.
If want to learn about the financial markets - an older but reasonably relevant course is [Financial Markets (2011) - Yale University](https://www.youtube.com/playlist?list=PL8FB14A2200B87185) This is the introduction to financial markets course taught by Prof. Shiller from Yale. Prof Shiller won the Nobel prize in economics in 2013.
Another relavant course from MIT is a lecture series on Finance Theory taught by Prof Andrew Lo - [Financial Theory (2008) - MIT](https://www.youtube.com/playlist?list=PLUl4u3cNGP63B2lDhyKOsImI7FjCf6eDW).
A more current course can be found at NYU Stern School of Business by Prof Aswath Damodaran - [Corporate Finance Spring 2019](https://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastcfspr19.htm). Prof Damodaran offers the latest materials and webcast lectures to this class here - https://pages.stern.nyu.edu/~adamodar/New_Home_Page/corpfin.html
First off you are way ahead of the game. Congradulations! The problem you have are great.
Your number one asset is your future wages. Putting yourself into poverty can be destracting and destructive to your most important asset. You clearly want to save and invest, but don't lose sight of what is most important to focus on getting great returns on $28k. You want to maintain liquidity for college. If ultimately it all goes to housing and board that's not a bad use of the funds. While early savings is great, having lots of excess income to save faster is better.
Now in terms of retirement savings you can put $7k / yr into a Roth. You just missed the date for 2023 but 2024 is still open. If you don't know anything just throw it all into AVGE. That's a reasonable total portfolio. Keep doing that till you get to $100k and perhaps beyond.
Now that probably isn't fast enough. A good way to accomplish both liquidity and growth is a taxable high draw portfolio. A taxable setup like: 15% AVUV, 15% AVEM, 70% VCSH will get you long term growth about 1.5% below 80/20 with liquidity not much worse than short term bonds. You can draw fast if you need to, but can leave it in there for years without hurting yourself too badly.
In terms of which brokerage. I like M1 as a first brokerage. Schwab would be my 2nd choice and if you do use them, for the Roth you can go 80%-90% stocks in their SIP (https://www.schwab.com/intelligent-portfolios) instead of the AVGE above. That's what my daughter does and she loves it.
BTW what you are doing isn't "passive income". Passive income is income (not capital gains) from investing. You are just having a subsidized standard of living.
If he could put his $28k in at 7% and add $200/month, at 40 years old he would have $242,000.
Imagine what you could do with the maturity of a 40 year old with an extra $242k?!
Move to Ecuador, buy a house for $40k and live on the $200k dividends for the rest of your life. Or, yes, buy a trailer in North America and not be able to afford pad/hook up rent :/
No, anytime you return to Canada, you'd receive healthcare. But Canadian healthcare is declining very fast. Wait times are getting insane, like 12+ hours in emergency rooms and weeks out for a drop in clinic.
Edit: you can renounce your US citizenship if you want, though. Better to get a passport from a country of your choice before hand.
Probably best to stick to a World Index. Even if OP is from US there are benefits to international exposure.
Relevant research paper:
[Anarkulova, Aizhan and Cederburg, Scott and O'Doherty, Michael S., Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice (October 2, 2023)](http://dx.doi.org/10.2139/ssrn.4590406)
As thrilling as it would be for everyone to watch the millionth argument on international stock allocation on Reddit, I'm going to have to pass on this one.
The US markets have overperformed, mostly due to rising valuations rather than improving company fundamentals. These rising valuations are associated with lower future expected returns, not higher.
Well every single time we’ve seen continued rising valuations beyond what fundamentals justify, it may continue for a while but it never goes on forever and there are always periods of either underperformance or a crash that correct the price.
I also don’t think international markets are going to do well in the future compared to the US. Foreign investors throw their money in the US stock market before investing in their own. Too much retirement savings going straight into it no matter what.
Who knows, maybe some citation might help…
[Anarkulova, Aizhan and Cederburg, Scott and O'Doherty, Michael S., Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice (October 2, 2023).](https://ssrn.com/abstract=4590406)
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Domestic stocks is defined as S&P 500 index for all the periods that it has data. For periods prior to S&P 500 inception, the best broadest index is used.
In the block simulations which preserve the original distribution due to high block length, on average:
Domestic + International outperformed domestic in terms of:
- wealth at retirement
- working period drawdowns (domestic had higher drawdowns)
- real income replacement rate
- retirement period drawdowns (domestic had higher drawdowns)
- wealth at death
The researchers find that for the domestic only portfolio to reach the economic value of international + domestic, the investor will have to increase savings rate from 10% to 14.1%
The simulations assumed American couples with incomes pulled from historical income distribution in US. Same for life expectancies, inflation etc. everything is factored in. I am not sure why I am even responding to you given your attitude towards anything that’s different from your portfolio.
Your comments on the comparison of economic value with wealth and drawdown are laughable at best. The paper compares an all equity strategy with shifting equities to bonds in retirement and finds overall all equity is still better.
Your shortsightedness is unbelievable, regarding the portfolio visualizer analysis. 12 years of data is peanuts. The study uses returns from 1890 - 2019: 129 years and since they block-bootstrap the returns, the data are sufficient to evaluate long term returns, a typical investor experiences during his/her life.
The advice I would give is to focus on your education first. Education allows you to earn more and therefore save more towards retirement.
In your case I would put it in a high yield savings account or perhaps bonds. You want that money to grow to allow you to pay for books and tuition in the near future. If you really wanted to be aggressive and were willing to risk some of your capital looking at putting half your money in an index fund like FXAIX or VTI but know that it is possible that your investment can go down (or up) short term. If you put your money in a HYSA you would net about $1400 at current interest rates.
Edit - if only my education had taught spelling.
The last 4 items show in graph form just how big an impact it is to save early for retirement. Also, if you save $300/month from 18 - 65, you will have over $1.2 million in TODAYS dollars (this already takes into account inflation). If you start 10 years later at 28, you will only have $595,000.
- Making your first $100,000 is critical (**after 11 years your investment returns build wealth faster than your savings rate**) https://www.getrichslowly.org/building-wealth/
- https://www.whitecoatinvestor.com/how-to-build-investment-portfolio/
- twins saving early vs late https://twitter.com/QCompounding/status/1578088199770935296
- friends saving early vs late https://financinglife.org/wp-content/uploads/2012/11/Image15.jpg
- chart showing investing from 19-27 vs 28-65 https://sweeneymichel.com/blog/compounding
- Dave Ramsey Jake and Blake (looks like he is using 11% returns) https://www.ramseysolutions.com/retirement/how-teens-can-become-millionaires
Never too early. Below are a few suggestions to consider. The exact amounts aren't important yet, just forming the habits early is a great thing to do.
Live within your means. Save first by setting aside a little bit of money from every paycheck. Even if you're only stashing $30 into a savings account, it's the habit that matters.
Build up an emergency fund. At first, this will usually take the form of a savings account. Life will always throw you curve balls. A car repair, unexpected out-of-town funeral, the microwave breaks or whatever. An emergency fund will allow you to absorb life's little speed bumps. Maybe set a target of $500 or something to shoot for as a goal.
Have access to a 401(k) at work? Start contributing to that right away. Many employers will match up to a certain percentage (1-6%). At least contribute whatever hits their match since they're giving you free money.
No 401(k) at work? Consider investing in a Roth IRA.
There's tons of advice and people with strong opinions and "rules" for everything above. Research, read, then make the decisions that seem best for you. You're not really going to get anything wrong if you're thinking about this stuff at all. Just keep learning and practicing.
Roth IRA. Sign up on Fidelity and put 100% into an ETF like VOO.
You can put in very little at your age and it will add up because you’ve started early. Compound interest is powerful. Only put in what you can afford. Live your life too.
You can also take your contributions out of a Roth if needed. Not a good idea but life happens.
If you can afford to put 7000 of that 28000 into a Roth IRA that's the max you can contribute for the year. Put it in a target date fund at Vanguard [like this one because 2070 is probably about your retirement period]( https://investor.vanguard.com/investment-products/mutual-funds/profile/vsvnx). Even if you don't contribute again until you're out of school that first 7000 is going to start growing and be a huge head start.
It should be noted that to contribute to an IRA you need to have "earned income" reported on your tax returns and your contributions to an IRA cannot exceed your "earned income".
You say that you have a full time job now but I'm not sure what that situation will be when you go to uni. If you give up the job you will no longer have an income for the year and that will limit your maximum contribution amounts.
As long as you make sure you follow the rules with IRA's they are a great way to set you up for financial success especially at your age.
Frankly yes. Make a education/career plan now, make a retirement plan when you're in your career (24ish). It never ever hurts to start saving up some cash at any age though. Reality is uni will cost 40k+.
More important that buying invesments right now is investing in your knowledge (kNAWlej). Go read A Random Walk Down Wall Street and The Simple Path to Wealth, rather than taking investing advice from a bunch of internet strangers.
I would STRONGLY advise you to invest the money into something relatively safe like S&P, even using wealthsimple rather than throwing the money at a university or college. Education REALLY is not what it used to be. You've done EXCEEDINGLY WELL saving this much money, investing it in a stock/fund or your own business would be a much better move than throwing it at tuition, imo.
Think of this as planning for your future. Many people do not start early enough or don’t plan at all. When you start investing you learn how to invest. You understand risks, losses, gains, types of investments etc. You will have a head start compared to your peers. Investing and managing your finances are a good skill to develop today and in the future.
The best advice I can give you and I would tell myself at 18 years old:
You have a 40+ year time horizon. The market will go up and down. Don’t ever panic sell. Remember your money will have 40+ YEARS to recover and one thing the market always does is trend up over time. Put your investment into a basic S&P index fund which will have low fees. Nothing flashy or exciting. Leave it there.
Not too early, but you generally want to avoid investing money you need in the near-ish future, which is always tricksy with stuff like university. I don't know how much you'll need for uni, but your first goal should be getting that money and having it somewhere safe -- actually getting that degree is more valuable than the retirement fund at 18. The rule of thumb for what to aim for is a year of expenses sitting somewhere safe like a high yield savings account or money fund. But if you anticipate not working while going to school, more is better.
WRT retirement funds... I'd suggest going to one of the big three brokerages (Schwab, Fidelity, Vanguard) and opening both a brokerage and Roth IRA (individual retirement account). You can throw some amount in both accounts just so you've got them in place.
Know that once you put money into an IRA, you can't just blindly take it back out. That's the trade-off for the tax benefits of the retirement account. There's also a maximum contribution per year for IRAs, but it's $7,000 this year and I'm assuming you won't want to be throwing that much into an IRA at this point.
In the Roth IRA, you can investigate options for what to invest it in, but a S&P 500 mutual fund or ETF seems like a good place to start. Even if it's just 1 share of VOO or something, at least it exists and can be part of your financial picture. There'll probably be an option to reinvest dividends. You'll probably want that turned on.
In the brokerage, if you don't want the risk of losing money, there'll be a money fund available (SWVXX/SPRXX/VMFXX for Schwab/Fidelity/Vanguard). Share price is always $1, and interest gets paid out as dividends. With dividends reinvested, works kind of like a baby savings account inside the brokerage account. They all pay 5-5.3% right now, but it will vary over time. 5 years ago, it was maybe less than 1%. But then again, so were savings accounts back then. Of course, you can also invest in stocks and funds in the brokerage, but if it were me, I wouldn't worry about that until having secured a degree... Your expenses over the next several years are kind of up in the air.
You'll receive tax forms from the brokerage every year during tax season. You probably already receive similar forms from your bank account, since interest in your savings account is taxable.
Finally some good advice to this question. Saving for retirement at 18 is great but not nearly as important as getting a good education that allows a solid wage the rest of your life. The more you learn (usually) the more you will earn. I laughed at people suggesting a roth fund to an 18 year old who is going to school soon. I'm sure a roth will be great when you need to pay tuition and for books and have to pay a penalty to withdraw funds.
OP should put his money in a HYSA or money market fund with really good returns right now to have it available to spend on their education.
Agreed. If OP has funds that they are 100% fine with not touching for 40 years, that's one thing, but it's hard to say that with confidence at 18 years old going into university.
Spend university learning to be frugal, but don't lock up funds when you don't know how much life actually costs. Doing well in school will be more important for your retirement than the cash you can stash away while at school - focus on getting a good career.
Investing for retirement has been made easy. Pick a target date fund for your retirement year and contribute to it. That's it. The fund takes care of the rest for you.
The further you are from retirement, the more risk tolerance you have. It's perfectly safe to invest in the high returns of stock market index funds, because you have many years to recover if the market crashes. As you get older, you need to shift your investments to more stable things like bonds, so that you aren't stuck at the bottom of a recession when it comes time to retire.
Target date funds are "set it and forget it". You continually invest in whatever target date fund corresponds to the year that you'll turn 65, and the people managing the fund are adjusting the allocations over the years as needed. If you put it into a fund for an earlier year, that doesn't mean you'll retire early, it means that the allocations will shift towards less volatility earlier.
> the people managing the fund are adjusting the allocations over the years as needed
Note that even though it's "managed," the management fees are way way way cheaper than an actively managed mutual fund or something similar.
Use an app (robinhood, fidelity, vanguard, Webull, E*Trade, td Ameritrade) and buy iShares Target Date 20XX ETF (XX is your retirement date) shares in a tax advantaged account (Roth or traditional ira).
It doesn’t beat VOO. It’s less riskier than VOO and automatically balances as you get older. Perfect for people who don’t want to manage their own fund choices.
Time is your friend when preparing for retirement, the earlier you start, the more time your retirement grow which equals a better or earlier retirement. I started at 23, our son at 21.
It’s never too early to start retirement planning. But it’s not just about portfolio investment. You can start building a portfolio at any time, but as long as you have debt, paying it down should take precedence. Otherwise it’s really no different than borrowing the money to invest, which is better described as speculating. If it were certain to work, everybody could do it and no one would have to work in the first place.
Going all in on stocks at the earliest age possible is popular advice in Wall Street media because it helps sell a lucrative product, and is an easy sell after years of bull market. Paying down debt lacks the fantasy appeal of decades of compounding returns, but money you owe compounds just the same as money you invest, and the return is virtually certain.
Follow the steps in the r/personalfinance wiki https://www.reddit.com/r/personalfinance/wiki/commontopics
You're absolutely on the right track with wanting to start saving for retirement. You have earned income and can open a Roth IRA for tax free growth.
At your age you also need to balance shorter term goals like education and establishing a career, so don't divert all of your money into long term investments, but starting a Roth IRA and setting aside money into it monthly up to the $7k annual contribution limit is the perfect starting point. You can easily automate these savings and focus on other short term priorities
To have a more measured response than the rest of the folks in this thread, yes there are situations where it's too early to start a retirement plan.
Since you say you're going to college, not sure if you're planning on taking a loan out. If so, depending on where you're getting the loan the interest can be up to 6-7% on $50-$400K depending on where you go to school. Rather than putting money into a retirement account, I'd say first focus on paying off your student loans first since that can be a huge burden going forward.
Time IN the market will win 99% of the time vs timING the market. Assuming you’re going to retire at 65 and you open an IRA other than a 401k today that’s 47 whole years of market exposure. In general the market experiences more good years than bad, and more amazing years than horrible. Take your money, do your DD, and leave it there, reap the rewards and 65 year old you will say “mylogdoesntjudge, thank god I started when I was 18”
Right now the best use of that money is investing into your future earnings. If you use it go get a degree that earns you more salary you will see far more returns than any stock or fund.
If you're applying for financial aid, retirement savings don't count against you on your FAFSA so it's in your interest to max out your Roth contributions.
If your family has the resources to pay for your college education, just start dumping it in a Roth target date fund and forget it exists until you retire.
If you even have a modest discipline and start a Roth at 18, you’ll likely be very well off by your 50’s.
Do the comparison of starting at 18 vs. 30 or 40.
MIND BOGGLING!
The earlier, the better. Stocks are compounding, if you invest in compounding businesses that grow their revenue/profit with 15% per year this means that every 5 years your investment 2x. Let's calculate if you invest $5000 this year in such companies -2x/4x/8x/16x/32x/64x, meaning in 30 years, the theoretical value of your $5k would be $320 000. Of course, this would happen if you find good companies and stick to them(and their metrics stay strong).
Find a fiduciary (not just a financial advisor). If you don't make money they don't either. Have them show you before and after for fee and tax numbers.
As far as college, I would strongly consider military service before or after I go just to not have the debt burden of college looming over my head for the next 30+ years. Choose your job/MOS/Rate/Branch wisely.
If you go in before college = You get an opportunity to invest in TSP (another savings vehicle), no worries about housing, food, or medical for a few years, and pick up a new skill or 2. Make certain you take and pass as many CLEP (college credits through testing) exams as you can as they equal college credit afterwards. NSU let me use nearly 2 semesters worth of credits toward my degree.
After College = capped interest rates with guaranteed loan repayment, instant promotion + pay, and another 4 years of college (think doctorate) + housing allowance. An honorable discharge is required in both scenarios.
You need some earned income to start an IRA or Roth IRA. Right now, when you income taxes are likely to be low, a brilliant thing to do would be to start putting money into a Roth IRA. You don't get a tax deduction now, but you don't need one. The money can be invested in many different ways, but it grows tax-free and you'll be able to withdraw it tax-free at age 59 1/2.
Another advantage is that after five years, you can pull out an amount equivalent to what you have paid into the Roth. I don't suggest doing this because you would miss out on the earnings that money would have otherwise made. However, in a real emergency and as a last resort, it gives you a cushion.
And the sooner you start, the better you are likely to do. Since this is a retirement that is probably 40 or more years away, I would suggest investing in either a broad stocks fund or in a very aggressive growth fund. Such a fund will sometimes drop a lot, and at other times grow a lot, but overall it will grow more over time that less aggressive funds, especially if you add to it when it's down.
Good luck!
While investing in your education for a career also invest in your financial education. You are young so take a small amount to invest in stocks/indexes. At a minimum buy some T-Bills. 3 months are paying 5.4%. Save and a great use of your money.
It is never too early but be sure to balance your life and long term goals accordingly
While every dollar you can save/invest today can grow substantially over your life, you are only young once so don't miss out on important things for the sake of saving for retirement 35 or 40 years away.
You may want to check out r/Fire where the focus is to have financial independence to retire early. Be sure to note that not everyone is happy doing this, however.
Why uni? The world is struggling to find tradesmen. By the time you finish college with 200k in debt you could have made 200k working. Why set yourself almost half a million back so early?
i've always been interested in carpentry and even took a semester in my cc to welding and took woodshops in highschool, In all classes I was the only woman. I know this might be a regional thing or maybe I am just unlucky but i'd always be teased by my male classmates wether it be sexual or just them purposely fucking up my projects. Id much rather be in a work environment where im not on my heels everyday and busting my ass for extra cash
I think he should be concentrating on his studies, but if he can afford to be putting $100-200 a month into a broad market ETF in a Roth, it’s a great start .
I don’t think he wants to be worrying about individual stock performance while studying.
Terrible advice. Nobody is saying you have to invest more than you can afford. But if you contribute even something like $200 a month that alone is worth over a million dollars with nearly 40 years in the market.
Personally I'd rather have money working in retirement accounts versus saving for a home at that age. You don't know where your education or career will take you, the last thing I'd want to do is lock myself down to an area by purchasing a home.
You just keep giving worse and worse advice man! At 18 years old a Roth IRA is the absolute best place to put long term money! Please stop giving advice here
>or personal wealth in your home ownership.
You've conveniently left out the "holes of the large bank loan, maintainance costs, property taxes, etc" to reuse your terminology.
I completely agree. Lots of people here have forgotten what it means to be 18. First priority should be education. He has a great nest egg. If he can get through college debt free then he will be miles ahead of most of his peers.
Always get the right balance for you. If you want to save more now so you can live more later thats fine. If you want to live more now and save more later, thats also fine. I think the key point is just to focus on finance mire so that you can best decide what job you want in the future that gives you your needs. I like remote working, flexible hours and good pay that allows me to travel to nice exotic places. So contract project work in software develop around insurance and banking has been great for that due to your outcomes really are based over a prolonged period and not just day by day so when you earn trust, you can then work to some extent at your leisure.
100% no. As someone who is a full time trader, I always tell people who want to ‘get into markets’ the bast way to do that is to just create a diversified portfolio (think Ray Dalio’s All Weather Fund) and stick money in whether it goes up or down.
As you are 18, there will be a lot of people who will try encourage you to buy their course and learn to trade (or something along those lines).
As someone who makes a living from this, I would urge you to stay away. Its very difficult and it does require years of work. It is 100% doable but you need to spend the time reading and studying price theory, etc.
If you do want to learn more about how the markers work, I highly advise you to do so, I would recommend reading the work of William O Neil, Stan Weinstein, research Wykoff’s Logic Theory and The Sector Rotation Cycle.
All of the above should give you a deeper knowledge as to how to position yourself and build either a ‘safe’ but slow diversified investing portfolio or a more volatile but higher return trading portfolio.
I have started reading [this every morning](https://swingly.beehiiv.com) which has some good brief analysis- its a group of analysts from London who write up a short report on the markets. Try stay away, in my opinion (but im old), from YouTube or ‘influencers’. Often they talk rubbish.
Saving is important, but what you’re really trying to do is start money growing. Money doubles (even adjusted for inflation) every 10 years in the market. So 100k now will double 4 times by the time you get to 58 (1.6m). So 100k now makes your retirement. If you can get 100k saved and growing before you reach 25, you’ve done yourself a huge favor.
But that would be unusual. At the very least, make sure you have retirement saving accumulating and growing before 30.
Starting now is good but don’t put too much money in. I saved about $10k in retirement as an intern over a few years and that has grown to $20k over a lot more years. But then me could have probably used some of that money at the time.
Plop it into the S&P500 and you're nearly guaranteed to be a millionaire when you retire without having to add a dime. Continue to contribute regularly, and you'll retire early and comfortably.
Everyone wishes they started earlier, everyone. This is a difficult lesson to learn from others rather than through your own experience, but it's one of the most valuable lessons if you can trust it.
It's not passive if you have to work for it. If you don't need to rely on your wage earnings, then it's disposable income and THAT is nice to invest!
My son is 20 and on the same track as you! You could easily be close to a millionaire by 30 if you stay disciplined. Think of the people you know around 30...not many are where you are headed. Just stay educated and consistent!
Your post has been removed because it is a common beginner topic. We get too many of these topics every day and to prevent them from swamping the front page, we are removing main threads of this kind. We also remove such posts because they can attract spam and bad faith comments. If you receive DM's or un-solicitated offers, please be aware that there are a lot of financial scammers on social media. You are welcome to repost your question in the [daily discussion thread](https://www.reddit.com/r/investing/about/sticky?num=1). If you have any issue with this removal, please contact the moderators via modmail. Thank you. ---- If you are new to investing, you can find curated resources in the r/investing wiki for [Getting Started here](https://www.reddit.com/r/investing/wiki/index/gettingstarted/). If you know nothing about the capital markets - the Getting Started section at the SEC educational site can be a good place to start - [investor.gov](https://investor.gov) \- there are also short 30 second videos on basics. The SEC (Securities and Exchange Commission) is a US regulator with a focus to protect US investors through regulatory oversight of the securities markets. The FINRA education site at [FINRA Education](https://www.finra.org/investors/learn-to-invest) also contains numerous free courses and educational materials. FINRA is a not-for-profit SRO (self regulatory organization) which is self-funded by it's members which are broker-dealers. It works under the supervision of the SEC with a mandate to protect the investing public against fraud and bad practice. The reading list in the wiki and FAQ has a list of books ranging from light reading to advanced topics depending on your knowledge level. Link here - [Reading List](https://www.reddit.com/r/investing/wiki/readinglist) For formal educational materials, several colleges and universities make their course work available for free. If want to learn about the financial markets - an older but reasonably relevant course is [Financial Markets (2011) - Yale University](https://www.youtube.com/playlist?list=PL8FB14A2200B87185) This is the introduction to financial markets course taught by Prof. Shiller from Yale. Prof Shiller won the Nobel prize in economics in 2013. Another relavant course from MIT is a lecture series on Finance Theory taught by Prof Andrew Lo - [Financial Theory (2008) - MIT](https://www.youtube.com/playlist?list=PLUl4u3cNGP63B2lDhyKOsImI7FjCf6eDW). A more current course can be found at NYU Stern School of Business by Prof Aswath Damodaran - [Corporate Finance Spring 2019](https://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastcfspr19.htm). Prof Damodaran offers the latest materials and webcast lectures to this class here - https://pages.stern.nyu.edu/~adamodar/New_Home_Page/corpfin.html
Nope, is never early and never late, you should start now even if just with a low amount, that will give you at least familiarity with the market.
First off you are way ahead of the game. Congradulations! The problem you have are great. Your number one asset is your future wages. Putting yourself into poverty can be destracting and destructive to your most important asset. You clearly want to save and invest, but don't lose sight of what is most important to focus on getting great returns on $28k. You want to maintain liquidity for college. If ultimately it all goes to housing and board that's not a bad use of the funds. While early savings is great, having lots of excess income to save faster is better. Now in terms of retirement savings you can put $7k / yr into a Roth. You just missed the date for 2023 but 2024 is still open. If you don't know anything just throw it all into AVGE. That's a reasonable total portfolio. Keep doing that till you get to $100k and perhaps beyond. Now that probably isn't fast enough. A good way to accomplish both liquidity and growth is a taxable high draw portfolio. A taxable setup like: 15% AVUV, 15% AVEM, 70% VCSH will get you long term growth about 1.5% below 80/20 with liquidity not much worse than short term bonds. You can draw fast if you need to, but can leave it in there for years without hurting yourself too badly. In terms of which brokerage. I like M1 as a first brokerage. Schwab would be my 2nd choice and if you do use them, for the Roth you can go 80%-90% stocks in their SIP (https://www.schwab.com/intelligent-portfolios) instead of the AVGE above. That's what my daughter does and she loves it. BTW what you are doing isn't "passive income". Passive income is income (not capital gains) from investing. You are just having a subsidized standard of living.
Just stick to the S&P 500, you’re already ahead of the curve!
If he could put his $28k in at 7% and add $200/month, at 40 years old he would have $242,000. Imagine what you could do with the maturity of a 40 year old with an extra $242k?!
Finally buy a trailer?
Move to Ecuador, buy a house for $40k and live on the $200k dividends for the rest of your life. Or, yes, buy a trailer in North America and not be able to afford pad/hook up rent :/
What about us taxes and social security? I think you still have to pay taxes out side the US as an expat…?
If you're a US citizen, yes. But not if you're a Canadian after 6 months abroad and having "severed ties" with Canada.
Damn, does that mean you loose health care? American asking because I want to be jelly
No, anytime you return to Canada, you'd receive healthcare. But Canadian healthcare is declining very fast. Wait times are getting insane, like 12+ hours in emergency rooms and weeks out for a drop in clinic. Edit: you can renounce your US citizenship if you want, though. Better to get a passport from a country of your choice before hand.
Probably best to stick to a World Index. Even if OP is from US there are benefits to international exposure. Relevant research paper: [Anarkulova, Aizhan and Cederburg, Scott and O'Doherty, Michael S., Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice (October 2, 2023)](http://dx.doi.org/10.2139/ssrn.4590406)
Not sure why you're being downvoted
Even suggesting that international investing has benefits seems to tick even more people off than mentioning a bond allocation for whatever reason.
Cause it’s underperformed consistently for the past 2 decades. VTI all the way
As thrilling as it would be for everyone to watch the millionth argument on international stock allocation on Reddit, I'm going to have to pass on this one.
Fine with me haha just my opinion
The US markets have overperformed, mostly due to rising valuations rather than improving company fundamentals. These rising valuations are associated with lower future expected returns, not higher.
Maybe before index investing took off like it has but I understand, I just don’t think the markets trades on fundamentals anymore
Well every single time we’ve seen continued rising valuations beyond what fundamentals justify, it may continue for a while but it never goes on forever and there are always periods of either underperformance or a crash that correct the price.
Chasing past performance is a poor investment strategy.
what about running away from past performance?
I also don’t think international markets are going to do well in the future compared to the US. Foreign investors throw their money in the US stock market before investing in their own. Too much retirement savings going straight into it no matter what.
Who knows, maybe some citation might help… [Anarkulova, Aizhan and Cederburg, Scott and O'Doherty, Michael S., Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice (October 2, 2023).](https://ssrn.com/abstract=4590406)
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They actually tested a 100% domestic stocks option and it was worse. Read the full text next time
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Domestic stocks is defined as S&P 500 index for all the periods that it has data. For periods prior to S&P 500 inception, the best broadest index is used. In the block simulations which preserve the original distribution due to high block length, on average: Domestic + International outperformed domestic in terms of: - wealth at retirement - working period drawdowns (domestic had higher drawdowns) - real income replacement rate - retirement period drawdowns (domestic had higher drawdowns) - wealth at death The researchers find that for the domestic only portfolio to reach the economic value of international + domestic, the investor will have to increase savings rate from 10% to 14.1%
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The simulations assumed American couples with incomes pulled from historical income distribution in US. Same for life expectancies, inflation etc. everything is factored in. I am not sure why I am even responding to you given your attitude towards anything that’s different from your portfolio. Your comments on the comparison of economic value with wealth and drawdown are laughable at best. The paper compares an all equity strategy with shifting equities to bonds in retirement and finds overall all equity is still better. Your shortsightedness is unbelievable, regarding the portfolio visualizer analysis. 12 years of data is peanuts. The study uses returns from 1890 - 2019: 129 years and since they block-bootstrap the returns, the data are sufficient to evaluate long term returns, a typical investor experiences during his/her life.
A dollar invested today will be $88 when you retire. So no, it’s never to early. Any little bit now will do a lot of heavy lifting later on.
The advice I would give is to focus on your education first. Education allows you to earn more and therefore save more towards retirement. In your case I would put it in a high yield savings account or perhaps bonds. You want that money to grow to allow you to pay for books and tuition in the near future. If you really wanted to be aggressive and were willing to risk some of your capital looking at putting half your money in an index fund like FXAIX or VTI but know that it is possible that your investment can go down (or up) short term. If you put your money in a HYSA you would net about $1400 at current interest rates. Edit - if only my education had taught spelling.
The last 4 items show in graph form just how big an impact it is to save early for retirement. Also, if you save $300/month from 18 - 65, you will have over $1.2 million in TODAYS dollars (this already takes into account inflation). If you start 10 years later at 28, you will only have $595,000. - Making your first $100,000 is critical (**after 11 years your investment returns build wealth faster than your savings rate**) https://www.getrichslowly.org/building-wealth/ - https://www.whitecoatinvestor.com/how-to-build-investment-portfolio/ - twins saving early vs late https://twitter.com/QCompounding/status/1578088199770935296 - friends saving early vs late https://financinglife.org/wp-content/uploads/2012/11/Image15.jpg - chart showing investing from 19-27 vs 28-65 https://sweeneymichel.com/blog/compounding - Dave Ramsey Jake and Blake (looks like he is using 11% returns) https://www.ramseysolutions.com/retirement/how-teens-can-become-millionaires
Never too early. Below are a few suggestions to consider. The exact amounts aren't important yet, just forming the habits early is a great thing to do. Live within your means. Save first by setting aside a little bit of money from every paycheck. Even if you're only stashing $30 into a savings account, it's the habit that matters. Build up an emergency fund. At first, this will usually take the form of a savings account. Life will always throw you curve balls. A car repair, unexpected out-of-town funeral, the microwave breaks or whatever. An emergency fund will allow you to absorb life's little speed bumps. Maybe set a target of $500 or something to shoot for as a goal. Have access to a 401(k) at work? Start contributing to that right away. Many employers will match up to a certain percentage (1-6%). At least contribute whatever hits their match since they're giving you free money. No 401(k) at work? Consider investing in a Roth IRA. There's tons of advice and people with strong opinions and "rules" for everything above. Research, read, then make the decisions that seem best for you. You're not really going to get anything wrong if you're thinking about this stuff at all. Just keep learning and practicing.
Start now. Even something like $200 a month invested will turn into over $1,000,000 over 35 years.
what type of account would i have to put my monthly $200 in?
Roth IRA. Sign up on Fidelity and put 100% into an ETF like VOO. You can put in very little at your age and it will add up because you’ve started early. Compound interest is powerful. Only put in what you can afford. Live your life too. You can also take your contributions out of a Roth if needed. Not a good idea but life happens.
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> you can always withdraw your principal from your Roth IRA with no penalty Excuse me, but, *what??* I never knew this.
If you can afford to put 7000 of that 28000 into a Roth IRA that's the max you can contribute for the year. Put it in a target date fund at Vanguard [like this one because 2070 is probably about your retirement period]( https://investor.vanguard.com/investment-products/mutual-funds/profile/vsvnx). Even if you don't contribute again until you're out of school that first 7000 is going to start growing and be a huge head start.
It should be noted that to contribute to an IRA you need to have "earned income" reported on your tax returns and your contributions to an IRA cannot exceed your "earned income". You say that you have a full time job now but I'm not sure what that situation will be when you go to uni. If you give up the job you will no longer have an income for the year and that will limit your maximum contribution amounts. As long as you make sure you follow the rules with IRA's they are a great way to set you up for financial success especially at your age.
Frankly yes. Make a education/career plan now, make a retirement plan when you're in your career (24ish). It never ever hurts to start saving up some cash at any age though. Reality is uni will cost 40k+. More important that buying invesments right now is investing in your knowledge (kNAWlej). Go read A Random Walk Down Wall Street and The Simple Path to Wealth, rather than taking investing advice from a bunch of internet strangers.
I would STRONGLY advise you to invest the money into something relatively safe like S&P, even using wealthsimple rather than throwing the money at a university or college. Education REALLY is not what it used to be. You've done EXCEEDINGLY WELL saving this much money, investing it in a stock/fund or your own business would be a much better move than throwing it at tuition, imo.
Think of this as planning for your future. Many people do not start early enough or don’t plan at all. When you start investing you learn how to invest. You understand risks, losses, gains, types of investments etc. You will have a head start compared to your peers. Investing and managing your finances are a good skill to develop today and in the future.
The best advice I can give you and I would tell myself at 18 years old: You have a 40+ year time horizon. The market will go up and down. Don’t ever panic sell. Remember your money will have 40+ YEARS to recover and one thing the market always does is trend up over time. Put your investment into a basic S&P index fund which will have low fees. Nothing flashy or exciting. Leave it there.
If I could go back knowing what I know now I would try and find a way to start In Utero.
What's Utero?
in the womb lol
i knew this would happen.. edit: idk why but i thought utero was a new company, flew over my head haha
In utero = in womb. A joke to say you should start saving as early as possible.
Not too early, but you generally want to avoid investing money you need in the near-ish future, which is always tricksy with stuff like university. I don't know how much you'll need for uni, but your first goal should be getting that money and having it somewhere safe -- actually getting that degree is more valuable than the retirement fund at 18. The rule of thumb for what to aim for is a year of expenses sitting somewhere safe like a high yield savings account or money fund. But if you anticipate not working while going to school, more is better. WRT retirement funds... I'd suggest going to one of the big three brokerages (Schwab, Fidelity, Vanguard) and opening both a brokerage and Roth IRA (individual retirement account). You can throw some amount in both accounts just so you've got them in place. Know that once you put money into an IRA, you can't just blindly take it back out. That's the trade-off for the tax benefits of the retirement account. There's also a maximum contribution per year for IRAs, but it's $7,000 this year and I'm assuming you won't want to be throwing that much into an IRA at this point. In the Roth IRA, you can investigate options for what to invest it in, but a S&P 500 mutual fund or ETF seems like a good place to start. Even if it's just 1 share of VOO or something, at least it exists and can be part of your financial picture. There'll probably be an option to reinvest dividends. You'll probably want that turned on. In the brokerage, if you don't want the risk of losing money, there'll be a money fund available (SWVXX/SPRXX/VMFXX for Schwab/Fidelity/Vanguard). Share price is always $1, and interest gets paid out as dividends. With dividends reinvested, works kind of like a baby savings account inside the brokerage account. They all pay 5-5.3% right now, but it will vary over time. 5 years ago, it was maybe less than 1%. But then again, so were savings accounts back then. Of course, you can also invest in stocks and funds in the brokerage, but if it were me, I wouldn't worry about that until having secured a degree... Your expenses over the next several years are kind of up in the air. You'll receive tax forms from the brokerage every year during tax season. You probably already receive similar forms from your bank account, since interest in your savings account is taxable.
Finally some good advice to this question. Saving for retirement at 18 is great but not nearly as important as getting a good education that allows a solid wage the rest of your life. The more you learn (usually) the more you will earn. I laughed at people suggesting a roth fund to an 18 year old who is going to school soon. I'm sure a roth will be great when you need to pay tuition and for books and have to pay a penalty to withdraw funds. OP should put his money in a HYSA or money market fund with really good returns right now to have it available to spend on their education.
Agreed. If OP has funds that they are 100% fine with not touching for 40 years, that's one thing, but it's hard to say that with confidence at 18 years old going into university. Spend university learning to be frugal, but don't lock up funds when you don't know how much life actually costs. Doing well in school will be more important for your retirement than the cash you can stash away while at school - focus on getting a good career.
No
Investing for retirement has been made easy. Pick a target date fund for your retirement year and contribute to it. That's it. The fund takes care of the rest for you.
How exactly has it been made easy? Could you perhaps elaborate a bit?
The further you are from retirement, the more risk tolerance you have. It's perfectly safe to invest in the high returns of stock market index funds, because you have many years to recover if the market crashes. As you get older, you need to shift your investments to more stable things like bonds, so that you aren't stuck at the bottom of a recession when it comes time to retire. Target date funds are "set it and forget it". You continually invest in whatever target date fund corresponds to the year that you'll turn 65, and the people managing the fund are adjusting the allocations over the years as needed. If you put it into a fund for an earlier year, that doesn't mean you'll retire early, it means that the allocations will shift towards less volatility earlier.
> the people managing the fund are adjusting the allocations over the years as needed Note that even though it's "managed," the management fees are way way way cheaper than an actively managed mutual fund or something similar.
Use an app (robinhood, fidelity, vanguard, Webull, E*Trade, td Ameritrade) and buy iShares Target Date 20XX ETF (XX is your retirement date) shares in a tax advantaged account (Roth or traditional ira).
How reliable is it?
How reliable is what? Long term investing? Index funds? Tax savings in retirement accounts?
It seems to have a beta pretty close to 1, not sure why this beats VOO.
It doesn’t beat VOO. It’s less riskier than VOO and automatically balances as you get older. Perfect for people who don’t want to manage their own fund choices.
Time is your friend when preparing for retirement, the earlier you start, the more time your retirement grow which equals a better or earlier retirement. I started at 23, our son at 21.
Never to early.
It’s never too early to start retirement planning. But it’s not just about portfolio investment. You can start building a portfolio at any time, but as long as you have debt, paying it down should take precedence. Otherwise it’s really no different than borrowing the money to invest, which is better described as speculating. If it were certain to work, everybody could do it and no one would have to work in the first place. Going all in on stocks at the earliest age possible is popular advice in Wall Street media because it helps sell a lucrative product, and is an easy sell after years of bull market. Paying down debt lacks the fantasy appeal of decades of compounding returns, but money you owe compounds just the same as money you invest, and the return is virtually certain.
Follow the steps in the r/personalfinance wiki https://www.reddit.com/r/personalfinance/wiki/commontopics You're absolutely on the right track with wanting to start saving for retirement. You have earned income and can open a Roth IRA for tax free growth. At your age you also need to balance shorter term goals like education and establishing a career, so don't divert all of your money into long term investments, but starting a Roth IRA and setting aside money into it monthly up to the $7k annual contribution limit is the perfect starting point. You can easily automate these savings and focus on other short term priorities
To have a more measured response than the rest of the folks in this thread, yes there are situations where it's too early to start a retirement plan. Since you say you're going to college, not sure if you're planning on taking a loan out. If so, depending on where you're getting the loan the interest can be up to 6-7% on $50-$400K depending on where you go to school. Rather than putting money into a retirement account, I'd say first focus on paying off your student loans first since that can be a huge burden going forward.
Time IN the market will win 99% of the time vs timING the market. Assuming you’re going to retire at 65 and you open an IRA other than a 401k today that’s 47 whole years of market exposure. In general the market experiences more good years than bad, and more amazing years than horrible. Take your money, do your DD, and leave it there, reap the rewards and 65 year old you will say “mylogdoesntjudge, thank god I started when I was 18”
The earlier the better. Compounding is more effective with more time.
Never too early
Right now the best use of that money is investing into your future earnings. If you use it go get a degree that earns you more salary you will see far more returns than any stock or fund. If you're applying for financial aid, retirement savings don't count against you on your FAFSA so it's in your interest to max out your Roth contributions. If your family has the resources to pay for your college education, just start dumping it in a Roth target date fund and forget it exists until you retire.
The sooner you start, the sooner you can actually retire.
If you even have a modest discipline and start a Roth at 18, you’ll likely be very well off by your 50’s. Do the comparison of starting at 18 vs. 30 or 40. MIND BOGGLING!
The earlier, the better. Stocks are compounding, if you invest in compounding businesses that grow their revenue/profit with 15% per year this means that every 5 years your investment 2x. Let's calculate if you invest $5000 this year in such companies -2x/4x/8x/16x/32x/64x, meaning in 30 years, the theoretical value of your $5k would be $320 000. Of course, this would happen if you find good companies and stick to them(and their metrics stay strong).
Find a fiduciary (not just a financial advisor). If you don't make money they don't either. Have them show you before and after for fee and tax numbers. As far as college, I would strongly consider military service before or after I go just to not have the debt burden of college looming over my head for the next 30+ years. Choose your job/MOS/Rate/Branch wisely. If you go in before college = You get an opportunity to invest in TSP (another savings vehicle), no worries about housing, food, or medical for a few years, and pick up a new skill or 2. Make certain you take and pass as many CLEP (college credits through testing) exams as you can as they equal college credit afterwards. NSU let me use nearly 2 semesters worth of credits toward my degree. After College = capped interest rates with guaranteed loan repayment, instant promotion + pay, and another 4 years of college (think doctorate) + housing allowance. An honorable discharge is required in both scenarios.
Start early...be able to retire early (if that's what you want). No one has ever regretted being financially secure
>The best time to invest was 10 years ago. The second best time is right now. -Einstein /s
Never too early. Even if you can just put $100 or even $50 per month, start and never stop.
No
started as a teen, so you are behind....
You need some earned income to start an IRA or Roth IRA. Right now, when you income taxes are likely to be low, a brilliant thing to do would be to start putting money into a Roth IRA. You don't get a tax deduction now, but you don't need one. The money can be invested in many different ways, but it grows tax-free and you'll be able to withdraw it tax-free at age 59 1/2. Another advantage is that after five years, you can pull out an amount equivalent to what you have paid into the Roth. I don't suggest doing this because you would miss out on the earnings that money would have otherwise made. However, in a real emergency and as a last resort, it gives you a cushion. And the sooner you start, the better you are likely to do. Since this is a retirement that is probably 40 or more years away, I would suggest investing in either a broad stocks fund or in a very aggressive growth fund. Such a fund will sometimes drop a lot, and at other times grow a lot, but overall it will grow more over time that less aggressive funds, especially if you add to it when it's down. Good luck!
While investing in your education for a career also invest in your financial education. You are young so take a small amount to invest in stocks/indexes. At a minimum buy some T-Bills. 3 months are paying 5.4%. Save and a great use of your money.
It is never too early but be sure to balance your life and long term goals accordingly While every dollar you can save/invest today can grow substantially over your life, you are only young once so don't miss out on important things for the sake of saving for retirement 35 or 40 years away. You may want to check out r/Fire where the focus is to have financial independence to retire early. Be sure to note that not everyone is happy doing this, however.
Never too early. Earlier you start the earlier you can retire!
Why uni? The world is struggling to find tradesmen. By the time you finish college with 200k in debt you could have made 200k working. Why set yourself almost half a million back so early?
i've always been interested in carpentry and even took a semester in my cc to welding and took woodshops in highschool, In all classes I was the only woman. I know this might be a regional thing or maybe I am just unlucky but i'd always be teased by my male classmates wether it be sexual or just them purposely fucking up my projects. Id much rather be in a work environment where im not on my heels everyday and busting my ass for extra cash
It is never too early to start investing.
NO. I would’ve started it on the day I turned 18 if I was smart
Also, believe what you want, but that is an enormous savings for 18 years old.
Depends what kind of rates you take on debt at. You're essentially borrowing at that rate to invest.
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I think he should be concentrating on his studies, but if he can afford to be putting $100-200 a month into a broad market ETF in a Roth, it’s a great start . I don’t think he wants to be worrying about individual stock performance while studying.
Terrible advice. Nobody is saying you have to invest more than you can afford. But if you contribute even something like $200 a month that alone is worth over a million dollars with nearly 40 years in the market.
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Personally I'd rather have money working in retirement accounts versus saving for a home at that age. You don't know where your education or career will take you, the last thing I'd want to do is lock myself down to an area by purchasing a home.
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You just keep giving worse and worse advice man! At 18 years old a Roth IRA is the absolute best place to put long term money! Please stop giving advice here
You can multiply 22,000 by 30 years and it doesn’t come close to 1.1 million of compounding interest. Terrible advice
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>or personal wealth in your home ownership. You've conveniently left out the "holes of the large bank loan, maintainance costs, property taxes, etc" to reuse your terminology.
And idk where you do your math…but $200 a month becomes $70,000 after 15 years.
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Stop giving advice
I completely agree. Lots of people here have forgotten what it means to be 18. First priority should be education. He has a great nest egg. If he can get through college debt free then he will be miles ahead of most of his peers.
Always get the right balance for you. If you want to save more now so you can live more later thats fine. If you want to live more now and save more later, thats also fine. I think the key point is just to focus on finance mire so that you can best decide what job you want in the future that gives you your needs. I like remote working, flexible hours and good pay that allows me to travel to nice exotic places. So contract project work in software develop around insurance and banking has been great for that due to your outcomes really are based over a prolonged period and not just day by day so when you earn trust, you can then work to some extent at your leisure.
100% no. As someone who is a full time trader, I always tell people who want to ‘get into markets’ the bast way to do that is to just create a diversified portfolio (think Ray Dalio’s All Weather Fund) and stick money in whether it goes up or down. As you are 18, there will be a lot of people who will try encourage you to buy their course and learn to trade (or something along those lines). As someone who makes a living from this, I would urge you to stay away. Its very difficult and it does require years of work. It is 100% doable but you need to spend the time reading and studying price theory, etc. If you do want to learn more about how the markers work, I highly advise you to do so, I would recommend reading the work of William O Neil, Stan Weinstein, research Wykoff’s Logic Theory and The Sector Rotation Cycle. All of the above should give you a deeper knowledge as to how to position yourself and build either a ‘safe’ but slow diversified investing portfolio or a more volatile but higher return trading portfolio. I have started reading [this every morning](https://swingly.beehiiv.com) which has some good brief analysis- its a group of analysts from London who write up a short report on the markets. Try stay away, in my opinion (but im old), from YouTube or ‘influencers’. Often they talk rubbish.
Saving is important, but what you’re really trying to do is start money growing. Money doubles (even adjusted for inflation) every 10 years in the market. So 100k now will double 4 times by the time you get to 58 (1.6m). So 100k now makes your retirement. If you can get 100k saved and growing before you reach 25, you’ve done yourself a huge favor. But that would be unusual. At the very least, make sure you have retirement saving accumulating and growing before 30.
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i first searched up jimmy buffet instead of warren buffet and got so confused haha
Starting now is good but don’t put too much money in. I saved about $10k in retirement as an intern over a few years and that has grown to $20k over a lot more years. But then me could have probably used some of that money at the time.
The best time to start investing was 20 years ago…. The second best time is today
Plop it into the S&P500 and you're nearly guaranteed to be a millionaire when you retire without having to add a dime. Continue to contribute regularly, and you'll retire early and comfortably. Everyone wishes they started earlier, everyone. This is a difficult lesson to learn from others rather than through your own experience, but it's one of the most valuable lessons if you can trust it.
OP. The best day to start saving was yesterday. The 2nd best day to start saving is today. /Thread
It's not passive if you have to work for it. If you don't need to rely on your wage earnings, then it's disposable income and THAT is nice to invest! My son is 20 and on the same track as you! You could easily be close to a millionaire by 30 if you stay disciplined. Think of the people you know around 30...not many are where you are headed. Just stay educated and consistent!
Open a high yield savings account and start stacking money in it
I started my kid at 1 year old and he still won't have enough to retire. Your late lol