As a millennial investor, you need different things from your investments. You might be more interested in ethical investing, or be saving for key events – like weddings or growing your family. But with so many different investment options and strategies, it can be tricky to pick the one right for you.
This article is here to help.
Why should millennial investors get started now?
With inflation and living costs climbing, investing early can help you to protect your savings.
Plus, compound interest—earning interest on interest—can make even small contributions grow significantly over time. With this snowball effect, you put your money to work.
How can I build a sustainable portfolio?
A strong investment approach for millennial investors starts with diversification. You might include a mix of growth-focused assets, like our SBF notes, alongside traditional options such as stocks and bonds.
To align with your values, try exploring ethical funds or companies using resources like Morningstar’s ESG ratings. This helps align your investments with your values, creating a balanced and sustainable strategy.
What can I invest in?
- Index Funds and ETFs: These collections of stocks or bonds track market indexes (like the S&P 500), offering diversification and lower costs.
- Real Estate Crowdfunding: Pool funds with others to invest in properties without big upfront capital, gaining rental income and potential appreciation.
- ESG and Ethical Investments: Support companies prioritizing environmental and social values, avoiding industries like fossil fuels or weapons.
What can I do now?
In summary, diversification and getting started early are key for millennial investors. Are you wondering what your own investment strategy might look like?
Try our Interactive Quiz to find out.
