Best Investment Options for US Millennials
If you are a Millenial and earning a decent amount, you should be investing it, as now is the time to accumulate money and save it for your future.
Investment options for Millenials are huge. And if you haven’t invested anywhere before, it can be quite overwhelming.
Some of the best investment options for Millenials are :
- Long Term Options (Beyond 10 Years)
These are investment options in which you have to leave your investments alone atleast for a decade. - Short Term Options (5 years or less)
These are investment options in which you can invest for 5 years or less.
a. Individual Stocks
If you want to invest for a longer duration and have time to research about different stocks, then this is one nice investment option to invest in. You have to study a company’s valuation and its strategy and then take a call.
b. Growth Mutual Funds
Millennials should consider mutual funds of growing companies and expand it to a lot of categories to be on a safer side. A well-managed Mutual Fund can give you an annual return of around 10%.
c. Exchange-Traded Funds
ETF’s are a lot like mutual funds, but they are traded like stocks. They have lower expenses as well as a low rate of minimum investment when compared to Mutual Funds.
d. Target-Date Funds
Target Date Funds operate with a particular year in mind. This can be invested in when you are near your retirement age. Supposedly, a 2050 Fund, means that they desire to retire in 2050 and till then their investment will grow.
Some say that they charge higher fees than others.
a. Treasuries
US Treasury Bonds are one of the most in-demand investment option as US Government always pays its due.
b. Other Bonds
Treasure Bonds are not the only bonds available, there are so many other bonds available that pay high interests. Find a bond that matches your risk tolerance level, as a higher interest rate means a higher risk level.
c. Broad Market Index Funds
A broad market index fund is a type of mutual fund that contains investments that track a large index. In this, you can purchase a large number of stocks of various companies in one sale.
But in this, you have to invest only if you know you are not going to need the money for around 5 years.
d. Peer-to-Peer Lending
In this investors lend money to other individuals without the bank as a middle man. Its possible to get great returns in this.
These are some of the best investment options for millennials to start investing.
