Nearly 90% of Millennials Invest Their Money, While Only 55% are Confident in Their Money Management Skills
Monday, March 1st, 2021
88% of millennials currently invest their money, citing their motivation to plan for their futures. Despite this, only 55% of them feel confident in their money management skills, according to a new report on Clutch, the leading B2B ratings and reviews platform.
Millennials, or investment beginners, can gain more confidence in their capabilities by researching their investment options.
Paul Sundin is a tax strategist at Emparion, a retirement planning provider. He says that there isn't one investment plan that works for everyone.
"There is no one-size-fits-all approach in investments, but there will be an investment that will be perfect for an individual," said Sundin.
Investment beginners should start by exploring their available options.
Millennials Primarily Invest in 401(k) Plans
Younger generations have a lot to consider when identifying the right investment account, like entry fees, commitment, and long-term goals.
While some millennials invest in traditional or Roth individual retirement accounts (IRAs) (29%), stocks (25%), and mutual funds (14%), the majority choose 401(k) plans (53%).
401(k) plans are the simplest choice. They are offered directly by employers and use payroll deductions to build up the accounts, increasing the incentive for millenials to invest.
"If your employer matches your contribution in your 401(k), that can be free money to take advantage of," said Ben Reynolds, CEO & Founder of Sure Dividend, a financial resource for investors.
Millennials can use their (401)k plan to set them up for a successful future.
Retirement is a Top Priority for Millennials
While retirement is years away for younger generations, millennials are making plans now.
Forty-five percent (45%) of millennials stated that retirement was the top reason they were investing and saving their money.
"You can't comfortably live off social security when you retire," said Reynolds. "Investing in retirement accounts, the market, or real estate can help you build a substantial amount for expensive medical and living costs after you retire."
Money management decisions made in the present will lead to a financially stable future.
Clutch surveyed 501 Americans in November 2020 to learn about their money management skills.
Read the full report here: http://www.clutch.co/accounting/resources/smart-money-tips-investment-beginners
For any questions about the survey or a comment on the findings, contact Anna Peck at firstname.lastname@example.org.