The Best Way to diversify investments
Think of investing like not putting all your eggs in one basket. If you drop the basket, all your eggs break! Here's how to spread out your investments smartly:
- Start with an Index Fund or ETF
These are like buying tiny pieces of hundreds of companies at once. For example, an S&P 500 index fund lets you own parts of 500 big companies like Apple, Disney, and Nike. - Mix Different Types of Investments
- Stocks (pieces of companies)
- Bonds (lending money to get it back with interest)
- Real estate funds (property investments)
- Use the Age Rule
A simple trick: Subtract your age from 100. That's the percentage you might want to put in stocks. If you're 15, that's 85% in stocks and 15% in safer stuff like bonds.
Where to Start:
- Apps like Acorns or Fidelity Youth Account let teens invest
- Talk to your parents about opening a custodial account
- Start with just $50-$100 in a broad market ETF