[E26] 5 Simple Principles for Stock Market Investing in Your 20s

<ol><li>Start Early<ol><li>Maria vs. Ana</li></ol></li><li>Automate contributions</li><li>Choose good index funds (25% each)<ol><li>Large cap fund</li><li>Mid cap funds</li><li>Small cap fund</li><li>International fund</li></ol></li><li>Don’t bail when times get rough<ol><li>Warren Buffett Clip (Berkshire Hathaway)</li><li>Bogle Clip (Founder of Vanguard)</li><li>Growth example (missing best market days)</li><li>Rolling Returns</li></ol></li><li>Diversify<ol><li>As time goes on and your income increases, look for ways to diversify your investment portfolio (though never abandon index funds)<ol><li>Index Funds (within an IRA or 401k – preferably a Roth)</li><li>Stocks and mutual funds</li><li>Cryptocurrency</li><li>Real estate</li><li>Insurance/protection products (whole life/infinite banking, annuities, etc.</li></ol></li></ol></li><li>Work on increasing your income and staying the course<ol><li>Boredom is one of the biggest risk factors you’ll face in investing</li></ol></li></ol><p>Show Links</p><p><a href="https://www.moneyunder30.com/small-cap-vs-mid-cap-vs-large-cap">https://www.moneyunder30.com/small-cap-vs-mid-cap-vs-large-cap</a></p><p><a href="https://www.schwab.com/investing-principles">https://www.schwab.com/investing-principles</a></p><p><a href="https://www.thesimpledollar.com/investing/stocks/tempted-to-sell-missing-just-a-handful-of-the-best-stock-market-days-can-tank-your-returns/">https://www.thesimpledollar.com/investing/stocks/tempted-to-sell-missing-just-a-handful-of-the-best-stock-market-days-can-tank-your-returns/</a></p><p><a href="https://www.thebalance.com/rolling-index-returns-4061795">https://www.thebalance.com/rolling-index-returns-4061795</a></p>