The last decade was not good as far as the financial markets were concerned, and some of the hardest hit are the emerging generation of millennials. These young professionals have had to deal with less than optimistic investment options which is why many of them hesitate to look at the stock market as a potential money-making venture.
As such, those who are still envisioning some gain through a more conservative investment scheme, look towards traditional savings accounts. Unfortunately, savings accounts have very little chance of growing your money.
Investing money in the stock market involves risk, and so do other schemes. The advantage of the stock market, however, is the opportunity to take advantage of considerably higher returns. This can help with future goals such as buying real estate, starting a family, or saving for retirement. The stabilization of the stock market in recent years may eventually lead to more millennials diversifying their investment portfolio to include the stock market. Here are compelling reasons why every millennial should think about putting money in stocks.
The financial world revolves around stocks
There are lots of options available for each investor. If you are looking for a guaranteed return on your investment, you can choose government bonds. Companies such as tech start-ups may be high risk, but for a young professional with a good career, the risk may be worth taking for the possibility of high gain. Doughroller suggests that if you want to diversify your stock portfolio and manage your investment properly, you may need the help of an expert.
It is the best time to invest
A millennial can take advantage of an early start to invest and grow their money. The younger you are, the more you have to gain from wisely putting your money where it will grow best. In addition to this, a millennial can also afford to take risks because they have a good number of years to work while building their savings.
Risks worth taking
You can diversify your portfolio by investing in high to low-risk stocks. For someone who is young and has a whole life ahead to look forward to, a millennial can surely consider the possibility of gaining more by not being afraid to take risks. Those who are more risk averse have much to lose. If you start investing early, you can afford to be less conservative and eventually gain more from this strategy.
Traditional savings accounts are not as attractive
It is understandable why millennials would want to take the safe route because of what happened to the economy a decade ago. However, it is no longer the case now, and if you want to rely on traditional savings accounts, you may be missing out on attractive investment opportunities available in the stock market. If you invest now while you are still young, you have the most to gain from the upward trend of the economy. With due diligence, you may even end up earning enough to afford an early retirement.