|Image Source: millennialmoneyman.com|
The next step is exploring investment options that fit one’s age, income, and appetite for risks. Contrary to popular notion, millennials and college students can start building wealth as early as they want using sound financial instruments like the Individual retirement account (IRA). For emerging self-employed and low-income individuals, Roth IRA is the best option. With a minimum amount of $100, millennials can save up for retirement, accidents, and any future life event. They can likewise adjust their contributions as they climb the money ladder, to up to $5500. Best of all, any income accrued by investment is tax-free.
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Better still, it is best for millennials to read up on the basics of investing. Countless books are available that offer sound and realistic advice. Some of the best (and free) financial advice comes from the Internet, thanks to websites such as Nerd Wallet, Investopedia, and Mint.com. If millennials wish to take their investing skills a notch higher, the Financial Planning Association holds free Financial Planning Day in several areas. They can check out the association’s website to see if there is one coming up in their area and get started.
|Image Source: forbes.com|
As the owner of financial services and money management firm Granite Pacific International and a former principal at Selman, Ross and Ranhofer, John Ranhofer dispenses sound financial advice to people of all ages. Subscribe to this blog for more financial advice and insight.