STEP BY STEP ON HOW TO INVEST IF YOU'RE 20

@tradeinvestsimplify

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Why it worked

The video provides actionable advice on investing for young people, a topic with high interest. It uses a clear, step-by-step approach and presents specific investment options with supporting data, making it easy for viewers to understand and follow.

Summary

This video provides a step-by-step guide on how to invest for individuals in their 20s, emphasizing the importance of starting early. The creator suggests opening both an individual brokerage account and a Roth IRA, recommending a technology fund for the Roth IRA and an S&P 500 fund for the individual account, with specific allocation percentages based on age groups.

Structure

1Introduction: The importance of investing early and the creator's experience.
2Opening Accounts: Recommending Charles Schwab and explaining individual brokerage vs. Roth IRA.
3Roth IRA Strategy: Highlighting tax-free growth and recommending a technology fund (FTEC).
4Individual Account Strategy: Recommending an S&P 500 fund (SPLG) and explaining its performance.
5Alternative: Mentioning a dividend fund (SCHD) as another option.
6Age-Based Allocation: Providing a loose guideline for investment allocation based on age groups.

Product placement

The video mentions and shows the websites for Charles Schwab, Fidelity, Robinhood, E-trade, and Seeking Alpha. It specifically highlights FTEC (Fidelity MSCI Information Technology ETF), SPLG (SPDR Portfolio S&P 500 ETF), and SCHD (Schwab U.S. Dividend Equity ETF) as investment options.

Original caption

Your friends will never retire - but you will! This video was first posted in 2025 - SPLG is now SPYM - same thing, new name! #kennethsuna #investingforbeginners #moneytok #LearnOnTikTok #retirement

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On-screen text

STEP BY STEP ON HOW TO INVEST IF YOU'RE 20 NINETY PERCENT OF NEVER RETIRE BUT YOU WILL BECAUSE YOU'RE FOLLOWING ME AND I'M GONNA SHOW YOU HOW SEE MOST OF YOUR FRIENDS ARE IN THIS MINDSET OF I'LL INVEST LATER INVESTING CAN COME LATER STEP BY STEP PROCESS ON HOW I WOULD INVEST FOR OVER 20 YEARS TO START ALL OVER AT THE AGE OF SAY EARLY 20S WITH THE KNOWLEDGE THAT I HAVE TODAY I WOULD DO GONNA DO IS TO A BROKERAGE LIKE CHARLES SCHWAB WHAT ABOUT FIDELITY WHAT ABOUT ROBINHOOD ALL OF THE MAJOR ONES ARE FINE OPEN AN ACCOUNT OPEN AN ACCOUNT OPEN TWO ACCOUNTS AN INDIVIDUAL BROKERAGE ACCOUNT THIS MEANS THAT TAXED ON ANY DIVIDENDS THAT YOU MAKE AND ANY PROFITS THAT YOU TAKE AND I'M GOING TO OPEN A WHICH IS TAX FREE SHOULDN'T BE ACCESSING THIS MONEY UNTIL YOU'RE 59 AND MAN MY COMPUTER DIRTY HUH OKAY I THINK THAT LOOKS BETTER NOW PEOPLE MOST OFTEN AND S&P 500 IN THEIR ROTH IRA BUT I WOULDN'T DO THAT REMEMBER IRA GROWNS TAX FREE AN AVERAGE ANNUAL RETURN OF 10% AND YES DIVIDEND FUNDS WILL PAY YOU DIVIDENDS TAXES INCOME BUT THE GOAL WITH A ROTH I RA THE LARGEST TAX BILL POSSIBLE AND THAT DOES NOT COME FROM DIVIDENDS AND IT DOES COMES FROM TECHNOLOGY SO IN MY ROTH IRA I WOULD MAX IT OUT 100% AND THIS IS YOU'RE NOT COMFORTABLE YOU DO WHAT WORKS FOR YOU IT OUT WITH A TECHNOLOGY FUND FTEC - FIDELITY MSCI INFORMATION TECHNOLOGY JUST ONE OF MANY OPTIONS IT IS UP 500% IN THE LAST DECADE DO THAT EVERY DECADE BUT IT JUST GIVES YOU AN IDEA RELATIVELY LOW FEES AND OF COURSE A VERY SMALL DIVIDEND IN MY INDIVIDUAL ACCOUNT SPLG - SPDR PORTFOLIO S&P 500 ETF YOU CAN SEE 192% RETURN IN THE LAST 10 YEARS AND EXTREMELY LOW FEES AND APP NOT GREAT DIVIDEND BUT IT'S STILL SOMETHING SCHD - SCHWAB U.S. DIVIDEND EQUITY ETF INVEST IN A DIVIDEND FUND THE PERCENTAGES AFTERWARDS THIS ONE IS UP 100% IN SO NOT A LOT OF GROWTH BUT IT PAYS DIVIDEND THAN THE FIRST TWO AT A CERTAIN POINT IF I EVER DECIDED THAT BUY INDIVIDUAL STOCKS I WOULD MOST LIKELY JUST CONTINUE IN MY INDIVIDUAL ACCOUNT BECAUSE WITH YOUR A YOU'RE MAXED OUT AT $7,000 A YEAR 20-40 years old 50% FTEC 30% SPLG 20% SCHD 40-50 years old 40% FTEC 30% SPLG 20% SCHD 10% bonds 50+ years old 20% FTEC 20% SPLG 30% SCHD 30% bonds JUST A VERY LOOSE GUIDELINE OF HOW I WOULD INVEST 20 TO 40 40 TO 50 AND 50+

Transcript

Ninety percent of your friends will never retire. But you will. Because you're following me and I'm gonna show you how to do it. See, most of your friends are in this mindset of I'll invest later. Investing can come later. This is a step-by-step process on how I would invest. I've been investing for over 20 years. If I were to start all over at the age of say, early 20s with the knowledge that I have today, this is what I would do. First thing I'm gonna do is I'm gonna go to a brokerage like Charles Schwab. I know a lot of people are gonna say, what about Fidelity? What about Robinhood? What about E-trade? All of the major ones are fine. Over here and I'm gonna click Open an Account. Open an account. I'm gonna open two accounts. An individual brokerage account. This means that you're gonna be taxed on any dividends that you make and any profits that you take. And I'm gonna open a Roth IRA, which is tax-free. But you shouldn't be accessing this money until you're 59 and a half. Man, my computer looks a little dirty, huh? Okay, I think that looks better now. People most often and S&P 500 in their Roth IRA. But I wouldn't do that. Remember, the Roth IRA grows tax-free. And yes, the S&P 500 has an average annual return of 10% and yes, dividend funds will pay you dividends, which will be taxed as income. But the goal with a Roth IRA is to avoid the largest tax bill possible. And that does not come from dividends and it does not come from the S&P 500. It comes from technology. So in my Roth IRA, I would max it out 100%. And this is just me, if you're not comfortable, you do what works for you. I would max it out with a technology fund. FTEC is just one of many options. It is up 500% in the last decade. Doesn't guarantee it'll do that every decade, but it just gives you an idea. And it has relatively low fees and of course, a very small dividend. In my individual account, that is where my S&P 500 fund would go. You can see a 192% return in the last 10 years and extremely low fees and app, not great dividend, but it's still something. At a certain point, if I ever decided that I wanted to buy individual stocks, I would most likely just continue in my individual account because with your Roth IRA, you're maxed out at $7,000 a year. And this is just a very loose guideline of how I would invest. So this is 20 to 40 years old, 40 to 50, and 50 plus.