Millennials may be blamed for the extinct of everything good such as cable TV and even a reduction in the sales of mayonnaise, they certainly have unique investing habits that deserve our attention. A millennial trader online can teach you so much about investment. In the search for happiness, this generation is shifting away from materialistic things. They focus on the best like affordable Cox internet plans so they run into petty problems while they are investing in international markets.
Investors am not even hesitating in turning down promotions and offer that don’t provide an enriching experience. Boomers have done everything to build their careers and financial futures. They have relocated, changed their social lives, and even lifestyles for that. But millennials seem to be handling things from a different perspective. When it comes to investing, they are teaching retirees some major lessons. Let’s explore them:
#1: They Believe Greed Isn’t Good
James Wallman, a famous trend forecaster, says that in the 1970s, people were 80 percent materialist. This figure has dropped to 50% today. The trend became evident in 2003. Millennials believe in taking pleasure in small things like a walk in the park rather than running after things they can’t afford or attain.
#2: They Are Retirement Savers and They Plan on Retiring Early
Millennials don’t have any intention of working in their old age. Most of them plan to retire by the age of 65. Some even hope to retire sooner.
They understand it well that they are responsible for saving for their retirement. Their primary source of income after retirement will be 401K, savings accounts, and IRA. They are not relying on pension benefits. They have hence started saving earlier. Retirement planning is on their priority list. They might even have a retirement plan documented for themselves.
#3: They like Simple Investments
When it comes to investing, millennials like to keep things simple. They have been investing in mutual funds rigorously. It seems like they are reading a lot of best investment books to make such sound decisions. Millennials are also taking advantage of the target date mutual funds and exchange-traded funds.
#4: They Admire the Sharing Economy
Millennials aren’t buying that many things. Instead, they seek for alternatives that fulfill their needs. Services such as Uber and Airbnb are perfect examples. All thanks to the sharing economy, you can now rent homes, bikes, cars and even clothes. Some people are also sharing tools such as power tools and garden equipment instead of purchasing them separately. Millennials are no doubt saving cash from the sharing economy.
#5: They Spend on Experiences
Like mentioned above, millennials aren’t spending on things. They are spending on experiences such as concerts, yoga, surfing lessons, trip to Paris, etc. 8 in ten millennials say some of their best memories stem from a live experience. Such experiences make them feel connected to people, their community and the world.
There is even scientific evidence supporting the idea that when you spend your money on experience instead of things, you get happiness. So baby boomers, experiences such as bowling clubs, painting lessons and a trip to your favorite destination will help you find happiness if you are retired.
#6: They Make the Most out of Technology
Millennials are tech-savvy and they use technology to track their savings and investments. They are found using mobile apps that let them automatically invest their money into a diversified portfolio.
They are letting tech influence their investment decisions. It is the millennials who hold and use cryptocurrency. They support technological innovations such as blockchain as they believe it will secure the global financial future. Some of them are even buying cryptocurrency to save for their retirement.
They don’t mind technology dictating their stock moves. No wonder they are showing interest in stocks of tech companies such as Tesla, Apple, Netflix, Facebook, and Amazon.
#7: They Are Investing Outside the USA
Rich millennials have shown interest in investing their money outside the United States. That’s all happening because of the popularity of social media and globalization of the world economies. Unlike their parents, they are more comfortable with investing outside the US.
They know that it’s a great form of diversification. They won’t have to become subject to the performance of a single country. The international market equities are emerging too and millennials are liking such vast opportunities.
#8: They Believe in Investing in the Self
Of all the lessons retirees can learn from millennials, this one shouldn’t be neglected at all. Millennials love investing in themselves because they know they are their best asset. But the question is how they do that?
By starting their business or acquiring a new skillet that boosts their earning power. For a person who is retired, it’s not the end of the world. Here are some things you can do to invest in yourself:
- Take good care of your health. The healthier you are, the less you will spend on healthcare.
- It is never too late to learn something new. Pick a new hobby or learn how to use technology.
- At this age, it may not seem appropriate but you can still look for new ways to invest and improve your portfolio.
Millennials are a little skittish about investing as compared to baby boomers but they have come up with their own ways of putting their money in the right place. Some are even planning to give online trading a shot. Why not learn from them?