Question

Please and Thank you :) Which two investment options would be best if you are 20 years old, just starting to save, and want to retire when you are 70? Consider the kind of investment, rate of return, level of risk, and other factors.

Answer 1

Roth IRA as it is tax free, and a 401k retirement plan. those would be the best two options for someone of that age.

Answer 2

Answer:

If I was 20 years old and was just starting to work, I would definitely invest in stocks and maybe a 401 K retirement plan.

The main advantage of investing in stocks is that they offer the highest potential returns, no other investment option comes even close. The main issue with investing in stocks is that the risks are also higher and even though the stock prices generally show an upward slope, the prices vary every day. There is a chance that the price of stocks falls during relatively long periods of time until they rebound. But since the investor is only 20 years old and can keep the stocks for 50 years, he doesn't need a very liquid investment.

I would also invest in a 401 K retirement plan as a way of balancing my investments, since this type of plans are generally very secure and carry low risks.  They also help to lower my taxes, which is a great advantage.