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Millennials: Tips on
How to Invest for a Brighter Financial Future
Special to The
Truth
The majority of Americans say
retirement investing is a priority, but more than half
consider Social Security a top-three source for funding
retirement, and 40 percent of millennials expect Social
Security (along with 401(k)s and pensions) to fund their
golden years, according to Capital One Investing’s Financial
Freedom Survey.
“With the future of Social
Security uncertain, all Americans, and millennials in
particular, should be proactively planning for their
financial futures,” said Yvette Butler, president of Capital
One Investing, a full-service brokerage. “There are
consequences to sitting on the sidelines, most importantly a
smaller nest egg in the long-term.”
Capital One Investing found 93
percent of millennials say that distrust of the markets,
lack of knowledge, little understanding of pricing and
costs, and general complexities make them feel less
confident about investing.
“Now more than ever, the onus is
on the individual investor to plan for a financially stable
future,” said Butler. “The industry needs to offer
millennial investors educational tools and transparent
products that will support them as they do so.”
With that in mind, Butler offers
several ideas that may help younger investors establish a
straightforward financial plan they can stick to.
• Start early: The earlier you
start planning and investing, the better. Once you have an
emergency fund saved, you may want to consistently
contribute to a diversified retirement account to try to
maximize your long-term gains. Even small amounts invested
today can add up over time. Tools like the ShareBuilder
Investment Plan enable you to invest a set dollar amount and
buy fractional shares of stocks, ETFs and mutual funds.
• Go online: An online investing
account is easy to open and doesn’t require a lot of cash to
get started, and online investing and mobile apps give you
increased on-the-go flexibility.
Low-cost portfolio building
tools that take into account your investment horizon and
risk tolerance can also help develop a strategy that works
for you.
• Get educated: From stocks and
bonds to mutual funds, ETFs, IRAs and 401(k)s, there are a
lot of strategies and vehicles out there, and it may seem
overwhelming at first. In fact, according to Capital One
Investing’s survey, more than half of investors of all ages
say their lack of knowledge and experience in investing
hinders them from feeling confident about taking action. You
may eliminate this barrier by exploring free financial
resources and educational tools that can help you sort out
the facts and learn about tried and true investing
principles.
• Ask for help: A trusted
professional can offer unbiased advice, and may help you
develop an investing strategy you can follow and adjust,
while instilling confidence about your future.
When it comes to establishing a
financial plan, stay motivated by determining clear goals,
and don’t forget to pat yourself on the back as you reach
various milestones. Remember, the work you do today should
pay off for years to come.
Courtesy StatePoint
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