As a 19-year old trying to achieve financial independence, what should I consider when looking for long-term high-yield investment vehicles?

I am 19 years old and I would like to achieve financial independence, which is $525,000 in my case. I have about $8,000 readily available to invest and can contribute an additional $650 per month. What should I consider when looking for long-term high-yield investment vehicles so I can reach that number safely and efficiently while beating inflation?

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1 week ago
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Congratulations on getting started with investing while you're so young!  If you stick with it, you'll be great condition whenever you decide to retire.

Be careful that you don't fall prey to sales pitches promising above average returns while keeping your principal safe.  They don't exist!  If they did, we'd all flock to them!  Instead, keep a long-term perspective and understand that markets will fluctuate.  At your age, a market drop is actually good news as it will allow you to purchase more shares at discount prices!

A few fundamentals for success:  Invest regularly.  Keep costs and taxes low using no-load index funds.  Diversify, which is cheap and easy to do with the same index funds.  Re-balance at least annually, but no more than quarterly.  Invest in equities from around the world, not just the US.  Understand your risk tolerance and invest accordingly.  Write out your Investment Policy Statement (IPS) and stick to it!  Avoid debt.  Avoid lifestyle creep as your income increases.  Finally, stay the course!  Don't let the markets or pundits sway you from what you know works!

Good luck and thanks for your question!

3 days ago
3 days ago