Did you know that 1 in 3 working Americans are millennials? According to Pew Research Center, they account for more 35% of the US labor force. As of 2017, 56 million American millennials aged between 21 years and 36 years were either looking for work or working.
With a job or any other income generating venture, comes the financial responsibility of making sure your money works for you. Undertaking serious money management responsibilities today will help to set a solid financial foundation
Want to grow your financial portfolio and enjoy your retirement as well?
It’s high time for you to invest.
Here are the top 3 investments for millennials.
Purchasing a Home
A vast majority of millennials have been swarmed with the following investment advice – avoid high interest credit cards, save early, don’t purchase stuff you don’t need, take advantage of retirement savings plan and buy 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, 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.
Purchasing your first home can be overwhelming and since its one of the biggest investment decision, it’s wise to take the right steps.
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. From the same survey, researchers found that 46% of millennials would start scrambling just to cover their bills if their next paycheck was withheld while 69% 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.