Investment statistics show that millennials are investing more of their money than the boomer generation before them. While this may be the case, there is room for more millennials to enter the investment world and grow their money. This gives rise to the question of where to actually invest. Here are a few investment options that you can explore just in case you have been thinking about it.
Stocks are one of the most traditional forms of investment. They have been considered one of the safest forms of investment, especially for people that are looking for long term options. Stocks give their owner partial ownership interest in a particular business and their value is proportional to the underlying performance of the business. There are a few ways through which one can purchase stocks. They can be bought individually, through mutual funds or through exchange-traded funds (EFTs). With significant improvements having been made on online brokerage platforms making stock trading easier and more accessible, more millennials are finding their way onto the stock market.
Millennials are generally associated with technological advancements and cryptocurrency is one of the biggest tech advancements in recent times. While cryptocurrency has gone through a lot of scrutiny and are faced with scepticism, they may be one of the best forms of investment for millennials. One of the major arguments against trading in cryptocurrency is that these currencies are not backed by any “real” securities or assets. This makes them highly volatile but in an increasingly digital world where security and privacy are major concerns, digital currencies have found favour. Since it was created in 2009, Bitcoin has been one of the fastest-growing assets across all markets and other digital currencies have seen varying degrees of success. For anyone looking for an investment to make, cryptocurrency could be an area to look into.
If one is looking for low risk and long term investment, mutual funds could be a good place to start. Basically, this is an investment fund that is controlled by an investment/money manager. The manager tries to get as many good returns as possible from the money that you have invested. Usually, the mutual fund is invested in stocks, bonds and many other low-risk investments as possible. It is a low-risk method of investment because the funds are spread across several stocks and bonds, which reduces the risk of losing money due to fluctuating markets. It is important to make sure that the money manager you pick is not overcharging you for their services and that they have a good track record, otherwise you could end up losing all your profits and maybe your initial investment to exorbitant fees.
Financial stability in your retirement years is very important and preparation for that time begins now. Retirement funds are another option that can be used to make low-risk forms of investment. Funds that are deposited into a retirement account are usually invested in bonds, stocks, treasury bills and other low-risk investment portfolios. Investments made through funds that have been deposited in a retirement account are usually long term, given that the owner of the account is likely to need to use the funds decades after their initial deposit. Millennials should look into creating a retirement fund and making sure that the funds thereof can be used to make investments.
In conclusion, investments are a safety net that everyone needs. Even if it means that you have to deny yourself some temporary pleasure in order to do it. You will thank yourself further down the line.