Creating Retirement Wealth: Investing Choices for College Students

As a college student, retirement may be the last thing on your mind. You’re undoubtedly obsessed with living in the present; school, exams, social activities, and possibly a part-time job. But it is never too early to begin planning for your future, especially retirement. Investment is key when planning for your future.

Investing your money may appear daunting at first, but it is essential for building wealth and safeguarding your financial future. To secure a worthy retirement plan as a student, examine the following form of investment plans:


Individual Retirement Accounts (IRAs)

Individual retirement accounts (IRAs) are long-term savings accounts that people with earned income can use to invest for the future while benefiting from tax breaks. The IRA is primarily intended for self-employed individuals who do not have access to company retirement plans such as the SSNIT.


Investing in Mutual Funds

A mutual fund is a portfolio of stocks, bonds, and other securities overseen by a professional fund manager. These securities can include publicly listed enterprises as well as privately held businesses. When you purchase a mutual fund, you are purchasing a portion of the portfolio and sharing in the rewards. Mutual funds are a great method to diversify your portfolio while lowering your risk. In Ghana, most investment bankers and houses have lower minimum fund requirements which are student-friendly.



Shares also known as stocks are units of equity ownership in a corporation. They are financial assets that generate large returns. The returns in shares are slower but in the long run, it is the best way of creating wealth. Choosing the right shares to invest in can earn you a lot of income over time but a wrong choice can cause you tons of money. In investing in any stock, consult an investment banker to advise accordingly before making the final decision.


Money Market Instruments

The money market refers to short-term financial instruments such as Fixed Deposits, Treasury Bills, Commercial Papers, and Repurchase Agreements etc. Money market instruments are popular among college students because they are considered less risky investments that provide relatively stable returns for a short period. Typically, the maturity periods for money instruments are 30 days to a maximum period of 365 days.

Not much money is required to get started. The minimum range of money required is typically between GHS 200 and GHS 1,000 depending on the investment option and the financial institution you choose. E.g., In Ghana treasury bills have a minimum of GHS 500.


Property Investment

Property investment has been noted as the best way to create wealth however it may be capital intensive, unlike the other forms of investment. Property investment may come in the form of buying properties, buying and reselling properties, or engaging in property rentals. You can also invest in real estate indirectly by purchasing a Real Estate Investment Trust (REIT).

Remember that investment is not risk-free so you need to consult with all the professional consultants or advisors required before making any decisions. Investing early in life allows you to capitalize on compound returns and develop your wealth for retirement. The good news is that property appreciates continuously hence your worth keeps increasing when you invest in such portfolios.



While retirement may appear to be too far away, it catches up with us faster than we anticipate there starting your investment plan for the future is never too early. Investing in employer-sponsored retirement plans, IRAs, mutual funds, stocks, and real estate can help you create wealth and prepare for a pleasant retirement. Start early, stay disciplined, and speak with a financial advisor to make informed decisions.

Your future self will thank you!

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