Investing Strategies For Millennials
There has never been a better time to be an investor. Millennials are fortunate to have access to research, tools, and opportunities that weren’t around for past generations. But the most important thing a millennial can do when they decide they are ready to start investing is get a clear game plan together.
Having a strategy is always the first step. Find a place online that offers investing strategies for millennials and start educating yourself. You may not know what the best strategy is for you at the current time but it’s important you start learning what is out there so you can make a decision.
In this post we will break down a few of the most popular investment strategies that millennials have available to them. These are our personal opinions and are for information purposes only. It is not intended to be investment advice. You should hire a professional if you have questions regarding your specific situation.
Okay with that out of the way we can talk strategy.
Buying stocks for the long term
One of the more popular ways to get into investing is buying stocks. As a millennials you should try and find companies with a solid track record and the potential to earn more money. Investing in them at a young age and holding on to them will ensure you are able to grow your investment.
Try and stay clear of stocks that are speculative or have wild swings in the market. These can be a great way to make short term money but you must understand financial markets in order to reap the benefits.
To start, find a company you believe in and do a little research. Google the company followed by stock and see what other investors are saying about it.
To get started with buying stocks you can consider an app like Robinhood. If you are interested, here is a little more information about Robinhood app review.
Investing in real estate
Some of the country’s wealthiest people got so by investing in either the stock market or real estate. Real estate investing is a good way to build a portfolio that will be worth a lot of money later in life.
Generally speaking, real estate investing involves finding houses for a good price and renting them out to tenants.
There are a lot of other ways to make money in real estate but for millennials you should focus on ways to build wealth slowly over time. It’s okay to have some risk but you are focusing on the future.
Real estate has some amazing tax benefits in the United States and has the ability to cash flow. That means you receive monthly payments above your mortgage payment.
But to start in real estate it starts with education and execution. If you can find a mentor or someone who is willing to talk with you about real estate that is a great way to learn an investing strategy that they use and see if it makes sense for you to use as well. There are a lot of blogs out there that talk about real estate investing. Find one that explains things clearly and start reading.
Your company 401k as an investment strategy
Maybe the idea of investing and worrying about your future isn’t something you want to think about. That’s okay. You can contribute to a 401k that your company offers and a financial professional will make sure your money is invested in things that will return more money to you later in life.
If your company offers a match, meaning they will also contribute to your 401k that is essentially free money and worthwhile to take them up on.
A lot of Americans use a 401k as their primary way of saving for retirement. In fact, according to a Bloomberg study nearly ⅔ of Americans are putting money into their 401ks.
This is a great strategy for a millennial who knows they need to invest but doesn’t have time to research different stocks and bonds.
Millennials must have a strategy
We have covered 3 of the most popular investment strategies available. Early I said that millennials have access to tools and opportunities past generations did not have. What I mean by that is millennials can easily research different stocks in real time, read blogs from some of the world's biggest investors, and use complicated investing software that didn’t exist 30 years ago.
There has never been a better time to take control of your financial future as a millennial. But the first step is having a strategy. It could be buying stocks and real estate. It doesn’t have to be one or the other. It could be that you want to own real estate because you earn a lot of income and need some tax write-offs.
It really comes down to your unique investing criteria. Having a plan will make sure you don’t spend time sitting on the sideline when you could have money in the markets working for you.