How Much Should 25-Year-Olds Save and Invest? Stocks Over Cash for Long-Term Goals
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If you're 25, you may have some work experience and ability to save more, but should you keep savings in cash or invest in stocks?
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According to Empower, the average 25-year-old has about half their money in stocks - around $76k in US stocks and $9k international.
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Consider your goals - build an emergency fund first, then invest extra in stocks, especially for retirement given your long time horizon.
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Experts suggest different savings amounts by 25 - save at least 20% of income or have tens of thousands in stocks if employed full-time.
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There's no one-size-fits-all amount, but 25-year-olds can likely withstand more volatility, so allocate more to stocks, especially retirement.