Thu Jul 25 2024, by Tyler Gardner

Investment StrategiesFinancial AdviceIndex FundsSemiconductor StocksMoney Market Funds

How to Invest $10,000 in Your 20s for Aggressive Growth

Hello, I’m Tyler. As a former financial advisor and portfolio manager, I aim to provide valuable financial content for free, so you don’t have to pay for it.

1. Invest in Low-Cost Index Funds

I would allocate $5,000 in an aggressive low-cost index fund like Vanguard's VUG or Invesco's QQQM. These funds come with incredibly low fees and track returns from high risk, high reward companies.

2. Consider a Semiconductor Fund

Next, I would invest $3,000 into a semiconductor fund like SMH. Even though some of these companies might overlap with the funds previously mentioned, I’m comfortable with this allocation. Investing in my 20s gives me the advantage of time to recover from losses and bet on the future of AI.

3. Allocate to a Money Market Fund

Finally, I would direct $2,000 into a money market fund such as Vanguard's VMFXX. This fund currently offers over 5% returns and is highly liquid, allowing me to keep cash on the sidelines for market corrections. When the market dips, I can purchase more shares of my first two investments at a discount.

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