Attention millennials: if you want to grow your financial portfolio – and enjoy your retirement as well – it’s high time you undertook serious money management responsibilities today which will help you establish a solid financial foundation.
The original article has been edited here for length (…) and clarity ([ ])
Here are the top 3 investments for millennials.
1. Purchasing a Home
…Financial advisors have concluded that buying a home as a millennial is an important investment and the right step towards building a retirement nest egg. Benefits of buying your first home as a millennial includes building equity, forced savings, tax savings and hedge against inflation.
Despite the benefits of owning a home, however, there are circumstances that may counter this. For instance, if you are planning to reside in a certain area for less than 5 years, then the best option for you is to rent. Why? It’s cheaper and integrates well with your short term goals. According to financial experts, it takes at least 7 years for one to get enough equity in a home…
2. Retirement Savings Plan
In a survey carried out by Ipsos, Earnest and Amino, it was found out that:
- 31% of millennials are contributing to a retirement account…
- 46% of millennials would start scrambling just to cover their bills if their next paycheck was withheld…
- 69% of millennials are not saving for retirement.
If you are among the 69%, you need to know that retirement is not too far off. A vast majority of financial experts have cautioned that if millennials don’t change their habits in regards to saving for retirement, they will miss a vital opportunity.
- Taking too long to start saving for retirement or learning how to invest in stocks means that you will fall farther behind…
- You will also miss out on the compound interest. This will surely affect…[your] wealth. What a vast majority of millennials don’t know is that time is their greatest asset when it comes to retirement savings plan.
According to financial experts, millennials aged 21 years today have at least 40 years before retiring. This is a great opportunity for them if they were to invest in stock, real estate and probably cryptocurrency futures. In the past decade, the three assets above have experienced explosive growth especially cryptocurrencies. It is estimated that they will continue to grow as time goes by.
By investing towards your retirement savings today, you will be in a position to increase your purchasing power. Apart from the assets above, there are other retirement plans you can take advantage of, such as:
- Traditional IRA,
- Roth IRA,
- Simplified Employee IRA,
- Simple IRAs
- and Employee sponsored plans
3. Invest in Knowledge
“Knowledge is Power” is an age old quote that has transcended time and humanity…gaining some is of paramount importance…
If you want to secure your financial status today and in the future, now is the time to take action. Instead of spending your hard earned monies vacationing frequently on exotic islands around the globe, invest your money in real estate, retirement savings and in your knowledge. Once you retire, you can plan and vacation on any exotic island you desire now that you are financially secure.