How To Get Some Financial Stability Through The Stock Market As A...

How To Get Some Financial Stability Through The Stock Market As A Recent Graduate


Recent graduates potentially with a mounting debt from student loans could definitely benefit from getting their foot in the door with regards to some stock investment techniques.

The Stock Market For Recent Graduates

If you ask any financial advisor about the best time to get started with the stock market, they’ll all tell you “the sooner the better” in order to get yourself ready for retirement. However, it’s not worth hurting your current financial stability for potential future riches.

It’s important to note that this is a trap many amateur stock investors fall into, so graduates should not make that mistake. It’s advised that graduates start a savings account and make sure they’ve got the expenses for the next half year saved up to make sure they aren’t tempted to use them for stock investments.

According to The Street, Matthew Gaffey, a financial advisor at Corbett Road said: “Before you invest in the market, invest in yourself. Most recent college graduates do not have an abundant ‘safety net’ to fall into if an unplanned expense, job change, etc. occurs. As such, your first priority out of school should be to create a sufficient emergency fund.”

Other Tips Before Starting

Financial advisor, Edward Snyder, from Carmel, Ind, pointed out that the majority of employers provide the option to transfer a fraction of your salary to your 401k, and that graduates should rush to do so at the beginning of their careers.

Nicole Strbich, of Buckingham Financial Group, also recommended that graduates take advantage of their lower salaries by locking in the tax rate on their Roth 401k accounts.

This is particularly beneficial, because Roth 401k’s, as opposed to the normal 401k, taxes individuals when they put currency into the account as opposed to when they withdraw from it. This could allow people the opportunity to be tax-free in the future, especially if they’re under a lower tax bracket today than they plan to be in the future.