At 21 years old, would it be wise to invest in CDs or go straight to financial market investments?

I’m a 21 year old male with virtually no true expenses other than phone bills and car insurance. I have been working full-time for four years and have been able to save up a five digit sum in my regular checking account. I’m trying to weigh my options here to see whether certificate of deposit (CD) accounts are a viable way to grow my wealth now or if it would be better to invest in company stocks. I’m willing to take on a medium amount of risk in investing as I have the means to cover my expenses.

Banking, Investing, Stocks, Insurance, Starting Out
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2 weeks ago

Without all information necessary to make a definite recommendation, the obvious answer is absolutely not.

You are far too young to invest in CDs. The reweard is not nearly high enough to even warrant consideration. Say you throw $50k into a 3yr CD at 3% per year compounded monthly, you won't even make $5k on the investment. You have plenty of time ahead of you - don't waste the early years (most important years) on low risk/low reward vehicles like CDs.

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