If investing confuses you, here's the secret.

if investing confuses you, here's the secret. I think of it like building a friend group You don't rely on just one type of friend. You want a mix. stocks = the fun friend They have energy, potential, and can be unpredictable. Stocks are individual shares of a company, so their value moves with factors like how a business performs, how the economy is doing, and with the market overall. Kind of like that intense friend: up one week, down the next, then back to main character mode. You'll feel the ups and downs, but they can help your group grow. bonds = the dependable friend Bonds are kind of like the dependable friend. They can help balance out the ups and downs and give you some stability. A bond works like you giving a company or the government a loan and receiving a promise to return your initial investment when the bond matures, plus pay you a set amount of interest over time— basically the investing version of a mom friend. They've already mapped out the plan, the timing, and the snacks. cash investments = the quiet friend Cash investments, like interest-paying savings accounts, money market funds, or certificates of deposit are like the quiet friend. They may not be the most exciting, but they're typically low drama and go with the flow. speculative investments = the wild friend And speculative investments like cryptocurrency? They're the wild friend. Speculative investments typically involve a high level of risk because they are newer, less established, or less regulated. They can be fun in small doses, but you never quite know what they're going to do next and are not right for everyone. So for me, investing in my twenties is like building a diverse mix of people in my circle. Understanding what each investment brings to the table and holding them together for the long term, based on my comfort level with risk. That's something I'm exploring in my own investing journey. These are just my opinions and what's worked for me, but everyone's situation is different, so it's important to consider your own goals and comfort levels before making decisions. One thing I've appreciated is that Schwab offers a ton of education, research, and tools to help me learn, stay informed, and build my portfolio with more confidence. You can learn more at schwab.com/learn I am a client of Schwab and was compensated for my comments. Your experiences at Schwab may differ, and there's no guarantee of future success.