Great advice for all from DailyHerald.com:
Despite the severe downturn in the 2008 financial crisis, investing in the stock market remains the best long-term play to generate the most return on your money.
“If you’re 20, 25, or even 35, you still have 25 to 35 years to ride out the highs and lows of any investment,” said Lyssa Thaden, manager of partner education at American Student Assistance, a nonprofit agency that caters to college students and graduates.
For young investors, the easiest approach is to invest through an employer-sponsored retirement plan like a 401(k). The money is taken out of your paycheck on a pretax basis and invested in stocks and other assets by a fund manager. You can withdraw the funds at 59 ½ without penalty.
If your employer offers a matching contribution, make sure you contribute at least enough to get the full matching benefit.
No access to a 401(k)? Consider opening a Roth IRA account. Your contributions will be taxed upfront, but in your 20s you’ll likely be in a low tax bracket. When you withdraw funds after you turn 59 ½, the funds and gains earned along the way are tax-free.
And if you invest, resist the temptation to cash out before you retire, or you’ll pay hefty tax penalties.