As a millennial, there are exciting times. You have just entered formal adulthood and have landed your first job. Many millennials wait to experience the beauty of the first job, the first paycheck and the first thrill of spending on things, you have always wanted to buy.
However, in the enthusiasm of all the above-mentioned points, it is important to realise that an early investment strategy, can help millennials in a big way. Financial advisors feel that early planning can help in making your money work and improving savings and earning opportunities.
In this article, we will look at the best investments millennials should look at in 2020. However, before we reach the list of investments, it would be better to see why millennials should look at investments in a serious fashion.
Why Millennials should invest early on in their lives?
The challenging economic times, which we are living in, make it necessary for every one of us to invest in different assets. This is even more necessary in the post COVID-19 pandemic era. Even as there are new economic opportunities, which are arising, there are many challenges, which are looming.
Investing early on can help in opening up newer streams of revenue generation, help in creating an efficient savings plan, and protect millennials in tough times. Controlling finances in a better way is a sign of maturity. It shows that you have a willingness to prepare for your future.
Financial advisors state that having a backup plan is always a great idea to ensure that unforeseen emergencies are met effectively, and that you do not have to ask someone for help if you face any economic difficulties.
List of Best Investment Opportunities for Millennials in 2020
1. Life Insurance Investment Plans-
One of the most important investment plans, which millennials should make, has to do with Life Insurance Plans. No one has any idea as to how long anyone is going to live. When we are young, we feel enthusiastic, and out to combat and control the world. However, recent reports have shown that millennials have been found to be prone to issues like Diabetes, Heart Conditions and other ailments. In such a scenario, investing in life insurance is a good idea.
2. Investing in Cryptocurrencies like Bitcoin-
One of the hottest new investment opportunities, which millennials are looking at, is cryptocurrencies. Bitcoin and other crypto have rallied hard even in the tough times of the COVID-19 pandemic. Trading platforms state that by steadily having a long-term investment base in crypto, millennials can hope to gain long-term benefits. Experts predict that Bitcoin is one of the strongest performers and is expected to rise well beyond $40K by 2020. Looking for careers in crypto world: check here
3. Investing in Precious Metals like Gold-
The economic world posts the pandemic will be governed by high rates of inflation. This is because almost all national governments are looking to print more and more money to help distressed people in their countries. When inflation rates rise, gold can be used as a hedge to protect the value of assets, you possess. Even though millennials shy away from investing in gold, experts say, that they should carefully examine the merits of the same.
4. Investing in Real Estate-
Financial advisors are divided on the benefits of investing in real estate. Some suggest that millennials should invest in real estate as a form of security. Others say that millennials should not expect to turn over high growth rates or percentages from real estate investments. Ideally, real estate can give you some form of peace and security, rather than help you with the margins like Bitcoin or other assets can.
5. Investing in Non-Traditional Stocks-
Millennials should look to invest in non-traditional and tech related stocks like gaming and Blockchain technology. Both these areas are expected to see a lot of growth in the near future. By moving away from traditional stocks, millennials can hope to amplify their returns and growth margins. However, it is important to do a prior assessment and engage in research before investing in stocks.
There are many favourable investment opportunities, which millennials can consider in 2020 and beyond. The key is allocate a specific portion of your earnings into investments. This will help your money work on your behalf and offer your financial security and growth in your life.