by Susan Paige
According to experts, by the time you reach the age of 30, you should have at least one year of your salary saved for retirement.
Whether or not you hit that milestone, it’s important to start investing as early as possible. That way, your stocks have more time to grow and you’ll get a much larger return on your investment by the time you reach retirement age.
But, you can’t just invest in any stocks. Instead, you’ll want to look for ones that meet certain requirements that will help your finances rather than hurting them. Keep reading to learn more about the best stocks for young investors.
Qualities of the Best Stocks for Young Investors
Before we jump into the five best stock options for young investors, let’s look at some of the reasons why these are on our list and why others didn’t make it.
Here are some of the things we look for when recommending stocks to young investors:
- High growth potential
- Low to moderate risk
As you start buying stock, don’t forget to diversify. You want to make sure you buy stock in a variety of industries to help prevent loss if certain markets crash.
These stocks are all in different industries so you can feel free to purchase from any or all of these, depending on what else is in your portfolio.
It’s no secret that this retail giant has changed the way we shop. It’s taken over large parts of the retail industry and shows no signs of slowing down anytime soon.
As upcoming generations continue to do much of their shopping online through Amazon, there’s a lot of growth potential here, making it a great option for young investors.
As big as Amazon is, there are still plenty of small businesses that need a way for customers to pay for their goods. Square makes it easy by offering credit card readers that attach to your smartphone.
With so many individuals and businesses alike in need of this service, Square is an excellent stock option for young investors.
Today, nearly everything is smart. People who have smart homes want an easy way to integrate all of their systems, including security. As people need more solutions for this, they will turn to companies like Control4.
Carvana is a company that provides a unique service that many are already paying for. Users can browse vehicles online and, when they’re ready to make a purchase, have that car delivered right to their door to test drive.
5. Planet 13 Holdings
As more states continue to legalize marijuana for both medical and recreational use, there are numerous opportunities to invest in this industry.
Learn more here about one such company that will allow you to invest in this industry that has a high potential for long-term growth.
Want More Financial Advice?
Now you know more about five of the best stocks for young investors. You also know what qualities to look for so you can consider other options that aren’t on our list.
If you want more help getting out of debt, making more money, and saving for retirement, check out the rest of our blog. It’s packed with information that will help you build a better financial future for yourself.