Alternative Investments

What are the Best Investments for Millenials?

Alice Wilson October 28, 2024

A 2024 Bank of America study shows millennials are moving beyond traditional stocks and bonds to grow their wealth—but where should you start?  

 

First-time investors often face a maze of choices, from ETFs to real estate crowdfunding. Today’s article will guide you through the best investments available for millenials, making it easy to build wealth in a way that fits your values and goals.

 

Why should I be investing now?

Investing early can be important for millennials, especially with rising inflation and living costs. For instance, if you’re saving for a $1 million house and inflation hits 5%, you’d need an extra $50,000 in just one year to maintain the same buying power. But by investing early, you can offset these increases.

Compound interest, which is like earning interest on your interest, can make even modest contributions grow exponentially over time. This snowball effect means that your money can work for you – contributing to sustained growth and financial peace of mind.

 

A group of trendy millennials sit on benches in a sunny park, for “What are the Best Investments for Millenials?”
More and more millennials are investing, but it can be tricky to know where to start

 

So what can I invest in?

Investing can be straightforward when you know your options. Here are some top picks for millennials:

 

      1. Index Funds and ETFs

These are collections of stocks or bonds designed to mimic the performance of a market index—like the S&P 500. By investing in Index Funds and ETFs, you own small portions of multiple companies, potentially spreading risk and reducing costs.

 

      2. Real Estate Crowdfunding Platforms

These platforms pool funds from multiple investors to purchase properties, allowing you to invest in real estate with much smaller amounts than traditional property purchases require. 

You can earn rental income and potential appreciation without needing large upfront capital—great for those interested in property investment but without huge savings.

 

Someone dropping a house key into the open palm of the new homeowner, for “What are the Best Investments for Millenials?”
Real estate crowdfunding platforms let you invest in real estate with minimal capital by pooling funds from multiple investors

 

       3. ESG and Ethical Investments

These involve putting your money into companies that prioritize environmental, social, and governance (ESG) values. 

By conducting thorough research, you can avoid industries like fossil fuels, weaponry, or other sectors that may not align with your ethics.

 

Creating a Sustainable Investment Strategy

Diversification is key for millennials trying to build a solid investment plan. This might mean mixing growth-oriented assets, like our SBF notes for example, with more traditional options, like stocks and bonds.

Research ethical funds or companies through tools like Morningstar’s ESG ratings to ensure your portfolio aligns with your values, creating a diversified and responsible investment strategy.

 

What can I do now?

Investing early and ethically can help you grow your wealth while staying true to your values. 

Ready to start? Explore more resources on our platform. Or, take one of our interactive quizzes to learn more about your own personal investment preferences. 

This information is being furnished solely for informational purposes. This material does not constitute an offer to buy or sell, or a solicitation of an offer to buy or sell, any security. This does not constitute and must not be construed as investment advice. Investing involves risk and possible loss of principal capital. Potential investors must rely upon their own examination of the merits and risks involved. Comments by viewers or third-party rankings and recognitions are no guarantee of future investment outcomes. Supervestor, LLC (“Supervestor”) has a reasonable belief that the content posted by a third-party does not contain untrue statements of material fact or misleading information. The opinions expressed herein are those of Supervestor and are subject to change without notice. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions, and may not necessarily come to pass. Certain statements included in these materials, including, without limitation, statements regarding investment objectives and strategies, and statements as to Supervestor’s beliefs, expectations or options may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to risks and uncertainties. Actual results and developments could be materially different from those expressed in or implied by such forward-looking statements. Charts are for illustrative purposes only and are not to be relied upon as investment advice. Unless it is explicitly identified otherwise all returns information presented herein is net of applicable fees and expenses.