Millennials and Investing: There’s More to It Than the Stock Market
Jan 02, 2020
Investing money solely for the purpose of retirement is an old way of thinking. With the drastic way retirement as a whole is changing, investments can be used as a supplement to your nine-to-five income, as well as a way to ease into retirement.
There are many ways to invest your money: the stock market, Bitcoin, real estate, IRAs, and company 401(k)s, just to name a few. Unfortunately, the majority of millennials are not taking advantage of them. With rising rent costs and enormous student debt, most young people can’t imagine having funds that are untouched for 20+ years. Those who are investing are investing in conservative stocks, such as bonds and money market funds, rather than significant income-generating stocks.
More than any other generation, millennials want to live their lives working on their passion projects, like opening their own businesses, or supporting a cause they believe in. Investments can yield supplemental income that can make these passion projects a reality. But keeping money in savings accounts alone will not offer the same beneficial returns as income-generating investments. There are many different ways to invest, and millennials have the opportunity to dive into whatever method works best for them. The stock market is certainly one option, but they also have the choice to invest in real estate or in a company that aligns with their social, religious, or moral ideologies. Millennials need to shift their mindset toward embracing all investment options.
Thanks to technology, information is more readily available than ever. While doing your own research is always a good thing, utilizing a financial planner’s services is a way for this generation to not only to see what their investments could yield, but to learn which type of investment is right for their long- and short-term goals. If you want to invest in the stock market, great. If not, a financial advisor can also help you prepare financially to open your own yoga studio, your new tech startup, or your new environmentally friendly sock company, for instance.
Millennials should feel confident about exploring their options when it comes to growing their money. It’s important to know investing money is much more than leaving it in the stock market and not touching it until retirement. Millennials are in a unique spot – with readily available information and more income-producing investing options than ever, it is important to find the right financial plan. The time for this generation to act is now.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Charles Stephen & Company is not affiliated with Kestra IS or Kestra AS.