Benjamin offered his expertise to Yahoo!, GoBankingRates and MSN to discuss how Gen Z investors can build net worth. Are you taking the proper steps to prepare yourself for the future?
An article recently published by GoBankingRates and picked up by Yahoo! and MSN featured our founder, Benjamin Koval, who offered tips to Gen Z investors looking to grow their net worth. While investing and growing portfolios is typically associated with those well into their careers, it’s never too early to consider your future. In fact, Benjamin’s first tip to Gen Z investors is to begin investing as early as possible, saying:
“Everyone wants to have a financially healthy retirement, but many get too caught up in the day-to-day of their lives to properly prepare. While it’s true that some short-term priorities must be addressed first, the effects of compound interest make early saving significantly more beneficial than trying to play catch-up later in life.”
Early investing can be made easier with an “out-of-sight-out-of-mind” approach. By setting up consistent, automatic transfers into retirement accounts, it can be easier to both grow your portfolio and budget with you net income. Benjamin also warns young investors who tend to opt for trendy investments, specifically saying to watch out for “pub advice.” Benjamin says:
“The world is full of people sitting at the local bar explaining how uranium mines off the coast of Peru are the best investments you can ever make. Worse are the many sales organizations trying to convince the world of how they have the inside knowledge to make you wealthy. There may be a place in an investment strategy for speculative investments — if risk tolerance allows — but most of your funds should be in more traditional vehicles.”
While the short-term boom of options like cryptocurrency might be attractive, time is a young investor’s best friend. Market indices such as the S&P 500 and the Dow Jones Industrial Average have a history of safer, more secure long-term growth, meaning that they can protect young investors from exposure to unnecessary risk.
The article also advises that Gen Z investors develop good financial habits now rather than later, saying that it’s important to learn to live within your means. There is no shame in taking advantage of sales, discounts and coupons to make your hard-earned money last longer. Living within your means also might afford you the ability to save extra income from raises, especially if you’re satisfied with your current lifestyle.
Finally, while recessions can be dangerous for those in retirement or entering retirement, they can be beneficial to opportunistic investors. Rather than being fearful of recessions, investors with a long-term outlook could buy additional shares and positions in the market at a sale price.
For more information on the tips and tricks for Gen Z investors looking to grow their net worth, you can read the entire article on Yahoo!, GoBankingRates and MSN.
If you have any questions about long-term investment, budgeting and growing your net worth to live a comfortable retirement, please give us a call! You can reach SoundPath Retirement Strategies at (425) 365-0204 for both our Bellevue and Mountlake Terrace, Washington offices, or at (702) 840-4592 in Las Vegas.