As the Millennial Generation continues to get more work experience under their belt, statistics from a UBS Wealth Management survey show that this generation is the most fiscally conservative generation since the Great Depression. With most recent generations, the advice that has served them best is to invest their money. With this generation, more and more people are listening to the advice that tells them to save their money in CDs or bank accounts.
Because interest rates are at nearly rock-bottom, investors who play it too safe will very likely lose money due to the effects of inflation. According to Judy Martel in her recent blog “Cash is King for Millennials”, Millennials allocate an average of 52 percent of their portfolio to cash, compared with 23 percent for investors of other generations.
Many companies are promoting the merits of starting a 401(k) program and giving their clients tips on 401(k).
Tips for the fiscally conservative
• Don’t opt out, opt in
• Don’t reduce your company match, find out how to potentially maximize it
• Adjust your investment allocations as you age• Do not borrow or withdraw money from your 401(k) until you are retired
and, most importantly…
• Start saving and investing now
Informative data at your fingertips.
Sherman Wealth Management