I was recently asked what tips I have for investors in their 20s. So, this is for those of you in your 20s.

Save early, save often is one of my mantras.

College graduate or not, beginning the savings and investing habit is important. Given the effect of compound returns in the later years, the early years are most important to wealth creation. Many of my clients wish they’d begun saving earlier.

I’ve even incented my kids to begin saving. My 20 year old has a Roth funded with some of his summer job earnings. That will grow for 40 years until he can touch it tax-free.

You can open a brokerage or mutual fund account. Schwab, Fidelity, Vanguard, etc… Now there are robo-advisors that make investing easy and automatic. Betterment, Wealthfront, etc… I recently was introduced to a Robo-advisor that automatically rounded up your debit card purchases and invested the change.

You should connect the investment account to your checking account and begin monthly deposits of at least $50. Then, move to 10% of your income and then increase the amount as you achieve raises. 20% savings is your goal.

Save towards something important for you? What matters to you now? A car? New clothes? Travel? Find what matters and then save for it.

They should focus on saving part of every paycheck. Get a good asset allocation mutual fund or otherwise diversified portfolio and add at every chance. Your fund will best serve you if it has low fees, is globally diversified, and has small company stocks. You may be best served by ignoring the daily stock market news. And remember the press as they are not fiduciaries and their only goal is to sell.

Don’t worry about the markets. You can only control what you save.

Save early, save often. Progress, not perfection.

Be well, Dan