3 Investment Tips for Millennials



Let’s be honest, investing isn’t always easy – at least it doesn’t always seem that way. With so many different options available on the market (from mutual funds to stocks), choosing the best strategy can be overwhelming. That’s where the assistance of a financial advisor comes into play.


It’s very easy to get caught up in hot tips, news headlines and guidance from family and friends. It seems like everywhere we look someone is giving millennials investment tips. The truth is finance is personal, and that’s why it’s so important to get tailored advice from a professional. With that being said, there are some pieces of advice that all young investors should know.


Here are three investment tips for millennials who want to start investing:


Start as early as possible


Yes, that’s right, young people should have started investing way before they were coined as millennials. As soon as you have an income (no matter how big or small) a portion of your paycheque should go into savings.


Thanks to a little thing called compound interest there are big benefits for millennials who start investing early. Compound interest helps your investments grow faster because your monthly earned interest (or dividends or capital gains) is reinvested back into your account. Therefore, the next month you earn interest on the previous month’s interest and so on for years to come. It’s brilliant.


Think long term with your strategy


According to Forbes, investing for the long term helps millennials see the bigger picture when it comes to risk versus reward in your portfolio. “Risk is kind of like that friend who regularly cancels plans but always comes through in a pinch. There might be heartache in the day-to-day, but in the long run, you’ll be glad you stuck it out.

In investing, more risk means the potential for more reward. Could you lose money and never collect that premium? Sure, but that’s unlikely when you’re in it for the long-term.”


Be honest with your financial advisor


Professional advice can help find an investment strategy that fits your individual plan, financial capabilities and life goals. However, that can only happen if you are completely honest with your advisor.


Think of a financial advisor as your financial doctor, they can’t totally assess the situation and provide a recommendation until they have all the information. This includes your short term and long-term goals, tolerance for risk, time horizon and general knowledge of the investing world.


If you have questions about investing or want to start investing but don’t know where to begin, I’m happy to help. Let’s chat about your goals and investment options for millennials.


*This content was originally created by Manulife Securities for information purposes only. It has been distributed for advisor publication.*

The Millennial Insurance Puzzle – Protecting Your Financial Security

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Millennials were born between 1980 and 2000. Today, the oldest is 35 and the youngest is 15. Millennials are a generation of young, educated, entrepreneurial adults who are statistically far less likely to have life or disability coverage than other generations such as your Gen X or Baby Boomer parents. Why is this fundamental building block of financial security being overlooked?

Some millennials tell me that insurance is beyond their budget. With rent or mortgage payments due, student loans to re-pay, investing in a new business or paying for child care, a monthly insurance payment may not seem like a good use of your dollars. Others plan to rely on their parents for financial support should their income be impacted due to an illness, accident or injury. Lastly, it can be a challenge to make an insurance decision due to the complexity of the products and the insurance industry jargon used to describe them.

To Have or Not to Have

Healthy young adults with no dependents may be focused on paying down debt and may feel they don’t need insurance yet. However, regardless of when you were born, we all need protection if we have a spouse, common law partner or children that depend on our paycheque. The largest financial asset you have is the income you will earn over the years. Insurance is designed to replace a financial loss – your paycheque.

Here are three things to keep in mind when deciding if you need insurance:

  1. Your employment situation. Are you are self-employed, a permanent full-time employee, employed on contract or in a full time “temporary” position? Do you receive life and disability coverage through work and to what degree? 
  2. Your family, income and debt. Do you and your spouse or partner have a mortgage? Do you have children? How much of your family’s monthly standard of living relies on your paycheque?
  3. Your parents’ ability to financially help you in the future. Have your parents delayed their retirement to support you or have they co-signed any loans for you?

Life and Disability Insurance

Many millennials have had very supportive parents throughout their lives, but there comes a point when you should consider life and disability insurance as a cost effective way to offer income protection. You can use disability insurance as a way to protect your financial security in case your income stops due to illness, accident or injury. This protection enables you to continue paying your living expenses including groceries, utility bills, mortgage or rent payments, student loan, car lease or loan, credit card and more. Life insurance will maintain your family’s standard of living should you die because your paycheque will be replaced by a lump sum insurance payment to your family.

Customizing the Product and Cost

Once you decide you want to purchase insurance, the next step is to connect with an online tool, like the Insure Right Calculator or an insurance agent to help lead you through the decision of what to buy and how much. An agent can customize the products available to cover your risks and match the related costs to meet your budget.


For more tips or to ask questions, please contact your Cornwall Wealth Management Advisor.


This post originally appeared on Mark Mulholland’s blog.