As more Black millennials are seeking to change their financial trajectory, discussions have begun to shift from the dopest gear, to stocks, bonds and ETF’s. More millennials are seeing the endless possibilities on how to obtain financial freedom and are realizing it’s more attainable than ever before. As a fellow millennial, and the career coach and financial expert behind the virtual career consulting brand Rock Career Development, I've broken down some of the various investing opportunities for financially savvy millennials who are looking to capitalize on their future.

Before diving right into investing head first, you must first set your expectations.

– Remember that investing is for long-term financial goals and to build wealth for your future. It’s not a “get rich quick” scheme. If you’re looking to find the next Bitcoin to invest in today so you can cash out tomorrow and retire, that’s highly unlikely. Thinking with a long-term mindset allows you to be more strategic with your investment decisions and prevents you from making reckless choices.

– Understand your risk level and how much money you can reasonably invest. The expectation is that the younger you are, the more risk you can take. However, that is a personal decision, so take time to think through how much risk you are willing to take on in your investments and how much money you can afford to lose. If you definitely know you will need the money and you can’t leave it in the markets, don't invest it. Investment portfolios are not savings accounts. The markets fluctuate and the value of your investments will fluctuate with it.

Next, take the time to understand the various investment vehicles/options that are available.

The following is a quick refresher on just a few of the most common:

– Stock – Individual share that represents ownership in the issuing company

– Bond – Fixed income debt instrument that requires the issuing company to make coupon/interest payments to the purchaser at specified intervals (annually, semi-annually, etc.)

– Mutual Fund – Collection of stocks, bonds, or other securities that are pooled together into a portfolio and are actively managed by a fund manager. So when you hear someone mention investing in mutual funds, they are purchasing shares of the overall portfolio, not of the individual underlying securities

– Exchange-Traded Fund (ETF) – Similar to a mutual fund, but passively managed and can be traded throughout the day on the stock exchange, thus allowing for more real-time pricing. Also, ETFs typically require a much lower investment minimum to get started than traditional mutual funds

– One of the main benefits of investing in vehicles like mutual funds and ETFs is diversification. Diversification essentially means investing in a wide variety of assets/securities in order to drive down your overall investment risk. For mutual funds and ETFs, given there are several different securities that make up those funds, your investment is not at risk if one company’s stock in the portfolio performs poorly in a particular year or quarter.

Now that you have an understanding of a few of the investment vehicles and portfolio diversification, here are some options for taking the leap and getting started:

– For the investor who wants to do the hard work of selecting your own investments, you can open a brokerage account. Technology has now made opening a brokerage account faster and cheaper for the savvy investor. Platforms such as E-Trade, TD Ameritrade, Ally Invest, Fidelity and Merrill Edge offer low account minimums and trade fees for you to get started.

– If you would rather not get your hands dirty, you can use a robo advisor that will do the work for you! Robo advisor firms like Wealthfront and Betterment also offer low account minimums and fees, gather information about your investment goals upfront, and then they do the heavy lifting of building your portfolio and automating the process!

– An easy way to get started with investing is to take advantage of your company sponsored 401k/retirement savings plan. These plans offer a spread of mutual funds and typically provide you with options for you to select what type of funds you want to invest in (i.e. stock funds, bond funds, etc.), dependent upon the level of risk for which you are comfortable. You can contribute to your 401k pre-tax and let your money begin working for you before you receive your paycheck. Take time to read through the investment options before making your selections and check on the performance of the funds on an intermittent basis.

– Another option is to invest in a Roth IRA. A Roth IRA is a special individual retirement account where you can contribute money after tax towards your investment goals. Roth IRAs offer a variety of investment fund options based on the level of risk you’re willing to take. Some offer plans/portfolios based on the year you plan to retire. The further out your retirement year, the riskier the investments offered because you have more time to let your money rebound after market fluctuations. Firms already mentioned, like E-Trade, TD Ameritrade and Merrill Edge, also offer Roth IRAs, amongst some other popular firms like Vanguard and T. Rowe Price.

To get more of my expert tips and career advice, visit my website Rock Career Development and sign up for our newsletter!