Millennials And Investing: A Study And Six Tips

This is probably news to no one yet the amount of myths permeating this age group are numerous. They account for the largest generation at 35% of the US labor force and have been so since 2016 according to Pew. As such, they have growing assets ripe for wealth accumulation, stock market participation and retirement planning to hopefully secure a promising financial future.

Before the survey findings, here are my 6 Tips for  Millennials

1. Save

Adopt a savings habit by cutting out unnecessary costs. See our post  25 Ways to Save Money And Feel Good About It.

2. Set up an emergency fund.

You need to to set up an emergency fund designed for liquidity by investing in cash-equivalent securities.  This fund should cover at least 6 months of unexpected necessaries. If you have outstanding debt, pay your highest cost debt first. Once the fund established and you have a plan to reduce, your savings should be invested to maximize your well-being.

3. Use your workplace retirement plan.

If you have access to an employer-sponsored plan and your employer provides “matching contribution”, make sure to take advantage of that. If you don’t, you are leaving your money on the table.

4. Set up your own retirement account.

If you don’t have access to an employer-sponsored retirement plan, set up your own IRA/ Roth IRA accounts. If you are self-employed or are a small business owner, consider setting up a SEP IRA. The point is you need to save for retirement as early as you can. Consider saving for retirement a form of investing.

5. Invest, invest, invest.

You should invest the rest of your savings in low cost growth diversified funds, such as in small, medium, or large market capitalization stocks or in a S& P index fund that mirrors the market and its returns. There are a lot of good choices to consider, whether you prefer saying in the US market, or diversify to potentially faster growth global markets.

6. Women millennials

Women millennials, in particular, need to become more confident in investment decision-making. My own experience as an equity analyst in a male-dominated Wall Street environment was often a challenge. Make challenges your opportunities. Women investors are often less risk-oriented than men, and adopt buy-hold strategies.

Women rated their own financial knowledge lower than the men, consistent with the millennial study. Still, greater financial education is needed for all millennials, and for our population in general.

SWIPE UP TO READ more ABOUT MILLENIALS AND INVESTING: A STUDY AND SIX TIPS

How Stock Market Games Can Teach Investing

Read more

Read more

18 Personal Finance Ratios You Should Know

12 Smart Ways to Make Your Graduation Money Work for Your Future

Read more

Read more