Are you young and clueless about investing? Here are some tips to get started.
Many millennials know that investing is an important part of financial growth and security, but are just not sure where or how to start. The thought of investing your money, particularly when you’re very new to it, can be intimidating, especially when you probably don’t have thousands of dollars in savings to spare or risk losing.
It helps to have a very clear roadmap for investing your hard-earned cash, so you can feel confident in doing so and know that you’re making a good financial decision. Below you will find some good advice for investing as a millennial.
How I Would Suggest You Invest If You’re a Millennial
It’s simple — investing in Index Funds and Exchange-Traded Funds (ETFs) is the way to go if you’re a Millennial. GICs and mutual funds just don’t offer the returns they once did, and their fees are notoriously high. Going the self-directed route is also a good way to go, especially since there are so many ways to do this now, like through TD’s Direct Investing WebBroker™. Options like these help you cut down on costs, leaving you with more money in the end.
This is fairly common knowledge within the personal finance blogging community. That’s why I was so shocked to learn that many Millennials don’t consider self-directed investing an option because they don’t think they have enough money to do it, they don’t feel knowledgeable enough about it, or they just find it confusing.
Here’s the thing, it’s really not. Like I mentioned earlier, there are so many different platforms out there to make it simple for you. For example, TD noticed that there was a need to simplify self-directed investing, so they created the TD Direct Investing WebBroker™. They’ve integrated tools to help you navigate the platform intuitively, focused on making the user experience a priority, and basically just make it easier for investors like you to reach your financial goals without having to constantly worry about how your investments are doing.
And This Is What You Should Do Right After Reading this Post
The key takeaway from this post is that investing shouldn’t be complex or scary. And if someone, whether a friend, colleague or advisor tells you otherwise, ignore them or run away! Brush up on the ins and outs of Index Funds and ETFs (I highly suggest listening to my podcast episodes with Barry Choi and John Robertson for starters) and then choose a platform that will help you invest in these products.
And if you’re still not sure if right now is the right time to start investing… it is. Yes, because interest rates are low right now, you may not make that elusive 8-10% all the finance books talk about. But it’s important to remember that the sooner you start saving and investing for your future, the better off you’ll be.
And if you’re still not convinced, consider these investing ABC’s from Calvin MacInnis, S.V.P. of TD Direct Investing:
No amount is too small when it comes to saving for your future. You just need to start, no matter how much money you can afford to contribute. The earlier you contribute, the bigger the impact those small sums will grow into down the road.
Brush Up On the Basics
You don’t have to be a math whiz to understand personal finance. It’s very basic stuff when you break it down. The important thing is to regularly brush up on the basics by reading books and blogs, watching educational videos, and listening to helpful podcasts to keep informed.
Choose Your Own Adventure
Never forget that you’re in control of your financial future. Don’t be afraid to try out self-directed investing because it seems confusing. It’s come a long way over the years and there are a number of platforms out there that are user-friendly, intuitive and include helpful resources to guide you through it.