Here’s what I’d do in the market crash as a first-time investor in my 20s

first_img Matthew Dumigan | Monday, 30th March, 2020 Here’s what I’d do in the market crash as a first-time investor in my 20s I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Address Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997” Matthew Dumigan has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline and Unilever. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Matthew Dumigan Simply click below to discover how you can take advantage of this. As a first-time investor, the recent news about the turmoil in stock markets can be off-putting. You may be wondering, who in their right mind would start investing now?I would argue that investing for your future has never been so important. Savings rates in Cash ISAs are atrocious, and you can’t rely on the state pension to give you a financially stress-free retirement.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Combine this with university debt, a 2% inflation rate, and rising house prices, and the financial outlook for millennials looks rather bleak. That’s why investing has never been so important for achieving financial freedom. Here’s what I’d do right now.Invest in UK companiesTaking the plunge and making your first investment is an exciting venture. That doesn’t mean it’s simple though.With thousands of stocks, ETFs, and mutual funds to choose from, it can be difficult to know where to start.One simple way you could begin is with a lump-sum investment in the FTSE 100 index. This provides instant diversification across a range of sectors. What’s more, the index’s overall performance often reflects the health of the UK economy. Ultimately, a FTSE 100 tracker fund is a solid choice for first-time investors looking to build a retirement fund without too much risk.If you’d prefer more control over your investments, selecting individual UK stocks is an option. Over the long term, good quality companies tend to expand and grow their businesses, leading to an increase in the share price over time.Think Unilever, GlaxoSmithKline,or Tesco,to name a few. These companies each have a big share of their respective markets, strong balance sheets, and prospects for future growth.On top of this, many firms pay dividends to investors simply for owning shares in the company. If re-invested, these can provide a platform for even bigger returns over the long term.Have a long-term strategyI think it’s of paramount importance to have a long-term horizon when it comes to investing. Bumper returns rarely come overnight.Instead, holding a position in quality companies for as long as possible has proved to be a dominant strategy for many investors.What’s more, having a long-term horizon dampens the effects of a market crash on your investments. This comes as you have the time to simply ride out the peaks and troughs of the market.For example, if you’re investing for at least the next 5 to 10 years, this market crash shouldn’t be anything to worry about. The stock market has always recovered after crashes in the past.Reap the rewardsInvesting for the long-term allows for the magic of compounding to take effect. Let’s look at some hypothetical examples:Assuming an annual growth rate of 8%, setting aside just £150 a month to invest in a Stocks and Shares ISA would result in your investments being worth £200,000 after 30 years.But how about this… If you were to begin saving £250 each month, assuming an annual growth rate of 8%, in 40 years’ time your investment would be worth £1,000,000!Becoming a millionaire really is that easy. As a first-time investor, don’t miss out on the opportunity that this market crash brings to grow wealth over time. Our 6 ‘Best Buys Now’ Shareslast_img

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