The FashionGrinder Forum

I already live a frugal lifestyle, knowing that throwing $$ isn't going to keep me happy. Of course, I always address my happiness level successfully so far.

I just got a full time job as an engineer.

You can benefit from the power of compounding. By investing now at 23 rather than later, you will have much more time to have your investment to grow.

Supposing that you invest in the stock market, you could take advantage of the low prices that are currently in effect. There will be market volatility, but since you're looking at a long term investment (or at least you should), you will have ample opportunity to have the investment grow over time.

For example, the Dow is currently at it's lowest point in about 12 years. This has wiped out many older investors, but a young person could take advantage of this, wait 2 - 5 years for the bear market to pass and watch the take advantage of the huge bull market that will inevitably come. Then you'll be sitting pretty on a huge chunk of dough.

You should seek the highest return possible because even if you lose big, you can just keep on investing. However, keep these things in mind:

1. The riskiest investments don't necessarily have the highest return in the end. Always include risk when you are determining rate of return.

2. Since you lack the expertise of managing investment risk, build a base of low risk (boring) investments first and then work your way up.


Also, at 23, you should be looking farther out than 15 years -- more like 30 to 40.

You should seek the highest return possible because even if you lose big, you can just keep on investing. However, keep these things in mind:

1. The riskiest investments don't necessarily have the highest return in the end. Always include risk when you are determining rate of return.

2. Since you lack the expertise of managing investment risk, build a base of low risk (boring) investments first and then work your way up.


Also, at 23, you should be looking farther out than 15 years -- more like 30 to 40.

Aggressively ??? I did just that a year ago and lost in excess of $42,000.00 ... Whats the hurry ?? Your young, the best thing to do for now is place your money in CD's that would generate 3 to 4 % in returns .... and once the economy is back up and running then perhaps you can make wiser decisions ... Rule of thump, never put all of your money in one single fund, spread out with at least 3.... 50% in low risk, 30% in medium and 20% in high risk.

long term growth, investments stay ahead of inflation