Expert Opinion

As a young investor, your primary goal should be averaging into the stock market and achieving diversification. \\\"Averaging into the stock market\\\" means investing the same dollar amount into the stock market each month, regardless of how the stock market is currently performing. This means you\\\'ll buy more shares when the stock price is low, and fewer shares when the stock price is high. Overall, this will result in a lower cost paid per share, which will mean a higher investment return.

\\\"Achieving diversification\\\" means you should invest in different companies, in different segments of our economy, in different economies of the world. The easiest way to achieve diversification is to invest in broad based index funds. Two funds a young investor should consider owning are a US-based index fund, and an international-based index fund. As for which specific fund you choose, that will depend on your account access, minimum investment requirements, and any other special circumstances that may apply. I don\\\'t recommend trying to select specific stocks to invest in unless you have extensive knowledge of the stock market and hours a day to devote to research.

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Do YOU have a question for Matthew Brandeburg? Email at mbrandeburg@bridgeway-financial.com.

Matthew Brandeburg, CFP® is the author of the book Financial Planning For Your First Job, available at www.amazon.com. His book teaches young adults how to manage their money and take charge of their financial lives. He has seven years of financial planning experience and runs his own business, Bridgeway Financial Group, LLC, based in Columbus, Ohio.

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