About 21% of surveyed Americans say stocks aren’t their preferred way to invest because the stock market is too intimidating, according to a Bankrate poll in January. That fear skewed higher for younger people, to 29% of Gen Z members and 24% of millennials, it found.
Putting all your money in cash or bonds may feel safe, because it seems like there’s little scope for financial loss — but this is misguided, according to financial advisors.
“When you’re young, worrying more about downside than upside is probably the biggest mistake,” said Josh Brown, CEO of Ritholtz Wealth Management. “You have to get rich before you focus on preserving your wealth.”
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In fact, young people shouldn’t be focused at all on cash positions or bonds in their investment accounts, Brown said. Instead, they should be fully invested in the stock market, he said.
Young investors have time on their side
It may seem counterintuitive that stocks are generally the safer route for young investors when it comes to building long-term financial security.
While stocks are generally more volatile than cash and bonds, stocks have also historically outperformed them over long periods — an important factor when it comes to growing wealth and beating inflation, which erodes the value of money over time, experts said.
The S&P 500, an index of the largest U.S. stocks, had an average annual return of almost 12%, including dividends, from 1928 through 2024, according to data compiled by Aswath Damodaran, a finance professor at New York University.
By comparison, 10-year U.S. Treasury bonds and corporate bonds had an average annual return of about 5% and 7% over the same period, respectively, the data shows.
Investors in their 20s and 30s have decades ahead of them for interest to compound and recoup any near-term financial losses from stocks.
“When you’re a young investor, you have something at your disposal that every professional investor dreams that they can have, which is more time,” Brown said.
“When you appreciate how much time you have, you recognize the benefit of long-term compounding,” he said. “Even though you think you’re taking more risk by buying and holding [stocks], you’re actually taking less risk.”
How to buy and hold stocks
Fajrul Islam | Moment | Getty Images
Buying and holding stocks is just one part of the equation — how investors hold them matters a lot, too.
Investors who are just starting out are generally best served by owning an index fund that tracks the broad stock market, instead of trying to pick individual company stocks that they or analysts think will perform well. The latter strategy is risky, since investors peg their financial outcomes to the success of a handful of stocks.
“If you’re going to be self-directed and you’re going to do it yourself, I would utilize index [mutual] funds and index ETFs,” Brown said. “And until you’ve got six figures of pure stock market exposure at a low cost, there’s really nothing else worth talking about.”
Young investors can start out with a total market index fund, said Christine Benz, director of personal finance and retirement planning for Morningstar.
An all-stock index fund that provides U.S. and non-U.S. stock exposure, such as the Vanguard Total World Stock ETF (VT), is a good “one-and-done fund” for young investors, she said.
A balanced fund or target-date fund may also work well, she said.
Balanced funds maintain a static asset allocation — that is, the relative mix of assets such as stocks and bonds — over time. A target-date fund is similar, but gradually winds down its stock exposure as investors age.
Investors should be mindful of the type of account in which they hold their assets, advisors said. For example, it may make more sense to hold certain funds such as a target-date fund in a tax-advantaged retirement account such as a 401(k) or IRA instead of a taxable brokerage account, a type of non-retirement account, to prevent an unexpected tax bill at year-end.
This article is part of CNBC’s Let’s Get Personal (Finance) video series. Check out the full lineup of videos to help you make smarter money decisions on YouTube.
The 2026 residential real estate market presents a nuanced landscape for homebuyers, current homeowners, and property investors. With benchmark mortgage rates adjusting alongside Treasury yield movements, real estate strategies require careful evaluation of borrowing costs, local market supply dynamics, and long-term home equity management.
Adapting Homebuying Strategies to Mortgage Dynamics
Prospective homebuyers are adapting to fixed 30-year mortgage rates hovering between 6.0% and 6.8%. While borrowing costs are elevated compared to historical lows seen in prior decades, moderating home price growth across several regional markets is creating selective opportunities for buyers with strong credit profiles.
Homebuyers are increasingly utilizing strategic mortgage options:
– Builder Rate Buydowns: Purchasing new construction homes where developers offer temporary or permanent interest rate buydowns to lower initial monthly payments.
– Adjustable-Rate Mortgages (ARMs): Selecting 5/1 or 7/1 hybrid ARMs with strict rate caps for short-to-medium-term housing plans.
– Points and Financing Structure: Evaluating upfront discount point purchases to secure lower fixed interest rates over the loan term.
Home Equity Utilization and Renovation Financing
For existing homeowners holding low-rate legacy mortgages, moving to a new property often entails relinquishing favorable debt terms. Consequently, many homeowners are choosing to renovate and expand existing properties rather than sell.
Home Equity Lines of Credit (HELOCs) and home equity loans allow homeowners to access accumulated property equity for capital improvements without disturbing their primary mortgage rate. Utilizing home equity for value-adding property renovations can enhance living space while increasing long-term property values.
Strategic Real Estate Investment Guidelines
For residential property investors, achieving positive cash flow requires strict underwriting standards:
– Stress-Test Operating Expenses: Factor in rising property insurance premiums, local property taxes, and ongoing maintenance reserves.
– Focus on High-Growth Rental Markets: Target regions experiencing steady job growth and sustained tenant demand.
– Maintain Cash Buffers: Ensure property portfolios maintain dedicated emergency reserves to navigate unexpected vacancy periods or major repairs.
Actionable Homeownership Steps
1. Evaluate Complete Monthly Housing Costs: Assess property taxes, homeowners insurance, and HOA fees alongside principal and interest.
2. Leverage Renovation Equity Carefully: Utilize equity loans strategically for renovations that generate long-term property value.
3. Prioritize Credit Score Optimization: Secure top-tier credit scores prior to mortgage pre-approval to qualify for competitive lender pricing tiers.
The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.
The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.
Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.
The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.
Here is the list of the 50 countries on the list as o August 3, 2026
Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.
Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.
Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.
The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.
Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.
By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.
Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.
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