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Considering everyones goals, risk tolerance levels and income situation is different, theres no one-size-fits-all approach to investing.
A little harsh, but theres a reason it works.
Mutual funds can be a good option for those just starting out since they generally have low fees.
But some experts believe that index funds are the better option.
They also have low fees but may have alower overall expense ratio.
Taking it one step further, Johnson suggested the idea of dollar-cost averaging.
Dollar-cost averaging into an index mutual fund or ETF is a terrific lifelong strategy, he said.
Empowering your own financial literacy could enable better-informed decisions!
The stock market can be volatile, though it tends to right itself over time.
The surest way to buildtrue long-term wealthfor retirement is to invest in the stock market, said Johnson.
He gave an old Wall Street adage: you could sleep well or eat well.
You will eat well by consistently investing in stocks.
All 3 Have Their Benefits and Drawbacks
Stocks, bonds and mutual fundscan all be solid investments.
Diversification means that you spread your money across a variety of different investments, said Hubbard.
Creating awell-balanced, diversified portfoliomay mitigate unnecessary risk.
Hubbard did add that diversification doesnt guarantee profit or automatically protect you against loss.
Its also about choosing investments that suit your interests and values.
Either way, you want to invest in what matters to you.
Since Gen Z is so young, mutual funds might be the better choice.
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