The Traits That Should Allow Millennials to Become Great Investors
As they witnessed the financial crisis that impacted the world, many millennials became skeptical about investing. However, risk aversion is not the main reason why they aren’t investing. CNBC cited a new Harris poll that listed the key drivers why those aged 18 to 30 years old are not investing. It appears that over 40% of them feel they don’t have enough cash to invest, 34% said they don’t know how to invest, while 13% blame their student debt.
However, millennials are missing out on the benefits of investing, especially in terms of saving for the retirement. This particular age group has characteristics that could potentially make them successful investors. Want to know what these traits are? Read on below to find out.
Time on their side
If there’s one specific resource that millennials have on their side, then it’s time. This is a very important factor as the more time spent investing, the greater chance of potentially accumulating wealth. By starting early, young investors have enough time to build up their resources to gain some expertise.
It helps to read inspiring stories of millennials that have invested successfully, such as Grant Sabatier who was featured by The Washington Post. Sabatier shared with the Post how he was able to become a multi-business owner as well as earning his first million by the age of 30 and how he continues to expand his portfolio.
Risk is inherent in investment and that idea doesn’t sit well with millennials who are facing trends in rising debt and variable income. This makes them even more conservative when it comes to investing. However, their desire to manage risk can prove to be advantageous. It can help them drive the use of conservative investment strategies. Investors can use this system to cap their losses effectively by deciding to use little if any leverage. If you are planning to work with a financial advisor, it’s ideal to choose the one with an expertise in looking after millennial investments, as they will be able to provide you better insights on the best opportunities based on your risk level and goals.
Love for technology
Millennials have lived with cutting-edge technology and seen the developments of smart devices. Their high affinity for technology combined with their goal to achieve financial freedom can be their key drivers to investment growth. Today, there’s a surge in available financial resources that millennials can leverage to succeed with their investments. There’s a myriad of tech tools they can use, such as websites offering online investment courses and trading platforms that give them an introduction into the basic processes. Armed with the right tools, young investors are able to obtain real-time market information that makes it easier for them to make the best investment decisions efficiently and conveniently even when on the go.
However, even with all of the above, if you aren’t brave enough to take the initial step in investing, then there is very little chance of gaining any long-term benefits from investing. You may start late when it comes to setting financial goals, but you need to have the confidence and courage to take that first step.
It’s time to get rid of the fear and build a financially stable future today.