Why aren't millennials investing?

Why aren't millennials investing? - Online Investment Management

- Posted by Michael Elson on October 25th, 2017

For millennials and young people in general, the word investment is a very serious and scary word, for many reasons. Firstly, because investment is generally understood and perceived as long term and anything past what you're doing next weekend is quite frankly, less important. Plus, if you add to that the "unknown" and "uncertainty", you might just want to run a mile.

But don't worry, you're not alone. Even as you get older, investment doesn't really get any less scary. However, the future becomes real and you can never plan early enough for this.

The 'so called' Millennials, are the population of people aged between 18 and 34, born from the mid-1980s onwards many of which are not invested in the stock market. This doesn't come as a surprise, let's face it, the economy isn't being particularly kind to young people, many of whom are still living at home due to extremely high property prices and monthly rentals.

So, what do you need to know and what should you consider when it comes to investing?

  • Like any sector, there are many professionals, both good and bad. Seek advice from peers, friends, colleagues who have invested and ask for recommendations on professionals.
  • Have clear goals about what you want to achieve and the budget that you are willing to spend on this. Knowing what you want from your investments will help you map out a strategy and will keep you on track and motivated. Make note of how much money you have each month for this purpose.
  • Once you've established your goals, you can then work out how to get there. There are many different stocks, shares and funds to consider and with a £20,000 annual allowance a tax free ISA is one of the best investment vehicles to consider. You can learn about different options available to you with Elson by clicking here.
  • Track your investments and make the most of online investment management. Tracking your investments is essential and will help you keep your eye on your goals. With our online platform you can do just this by clicking here.

What to avoid. Elson Associates - Online Investment Management

Doing nothing. The value of your investments can go down as well as up, but if you haven't invested, you'll be in the same situation you are now.

Starting Late. This one is self-explanatory but there really is no time like the present.

Not taking advantage of employer schemes. If your company offers a retirement savings plan with an employer match, you should be participating. Not doing so is a mistake.

Higher risk unless you're happy to accept losses. Know your budget and don't invest more than you have. Everyone's attitude towards risk is different so although the higher the risk the higher the reward could be, so could the losses. You may need some help and ideas about where to invest and what your risk level may be. The stock market can be unpredictable and could leave you feeling disappointed.

Viewing collectables as investments. Your Barbie dolls in their boxes and beanie babies with labels intact are unlikely to provide for you in later life, so don't count on those.

Why is it a good idea to invest?

A lot of young people dream of owning their first home but just saving money in a bank account wont give any sort of return especially with inflation cancelling out any real gains. Exploring different types of investments such as Stocks and Shares ISAs can be a great way to maximise the money you have.

Times are tougher for millennials and planning early can help you financially in life, whether this is to build a family or travel the world.

It's never too late to begin.

Want more information on the services we offer? Contact us today on 0800 0961111 or info@elsonassociates.com.