For millennials, there is no such thing as a guaranteed retirement and certainly not a comfortable one to the standards that their parents and grandparents have/are looking forward to. A big reason for this, apart from the lack of job security and the increase in freelance workers, is the lack of investment by millennials.
A lot of people in that age group are very hesitant to invest in the stock market, even their 401(k)s because they have a deep-seated mistrust of banks, bankers and especially Wall Street. In many ways, you can’t blame them, but if millennials want to have a solid financial future and a comfortable retirement, they really must own stock. Here are a few reasons why:
You Have a Lot of Life to Live
If you’re a millennial, you’re young, vibrant and you probably have a long life ahead of you. If you want to live that life comfortably- more than comfortably – travel the world, set up businesses and generally just turn your dreams into reality – you need more than your salary. It is only by taking a leap and investing your cash, and getting the benefit of compound interest, that you can expect to live a full and interesting life AND retire comfortably.
Interest Rates are Low
Have you looked at savings accounts or bonds recently? The interest rates are dire. You’re never going to get rich if you leave your money languishing in them, which is why you should so your research and find a trading platform, like Markets.com, which is a subsidiary of Playtech PLC and start taking your first steps into the stock market. Your returns will be way better, and that money you’re working so hard to save will actually start working for you.
Inflation Will Rob You
Oh, and if all you do is leave your money in a standard savings account, you can bet that you’ll be way worse off in the future, even if you keep adding to that nest egg each month. Why? Because inflation. You can read about how inflation affects your savings here, and it doesn’t make for pleasant reading! Fight back and get yourself some stock.
Wages are Low
Wages are low, and they aren’t rising as much as…well anyone would like, which again, means as the years go by, you could actually be being made poor by inflation and wage stagnation. Having some stocks that perform well could help to offset that so that you don’t feel the squeeze a few years down the line.
You Shouldn’t Put All Your Eggs in One Basket
This is a saying that can be applied to many areas of life, but it is particularly applicable to the financial world. If you have all of your money tied up in one place, it certainly isn’t going to work to its full advantage at best, and at worst, it could see you end up penniless. That’s why you should have savings, bonds and stocks – it’s safer and more lucrative!
I hope this has persuaded you that it’s time to bone up on the stock market and buy your very first shares. Good luck investing!