Many Millennials have taken the leap to start their own businesses. Among Millennials that don’t already have their own businesses, a majority plan to. This is because owning your own business can be a path to both financial freedoms and to maintaining a good work-life balance. For these Millennial entrepreneurs, it’s important to invest properly so that they can use the growth of their money to also grow their businesses. But what are the best investments for Millennial entrepreneurs?
A Retirement Account
Millennials are currently between the ages of 26 and 41. Even at the higher end of that range, that’s still young and many Millennials probably aren’t thinking about retirement. However, it’s essential to put as much as you can afford into a retirement account as early as possible. This is because the more you invest earlier, the more that investment has an opportunity to grow. Money invested in your 20s can grow a lot more than money invested in your 40s because it has the time to grow larger and larger over time. The earlier you invest in your own retirement, the sooner you can retire.
Millennials continually get the blame for the death of certain industries, from diamonds, casual dining restaurants, and cereal to cable TV, beer, and American cheese. However, Millennials choose to invest their money into industries that are more in line with their goals and values. If an industry doesn’t align. Many of the industries that Millennials have been “killing” are ones that haven’t adapted to changes in consumer tastes. Instead, a good investment opportunity for Millennial entrepreneurs is for other Millennial entrepreneurs. They can invest in businesses that align with their own values while at the same time helping fellow Millennials to grow their businesses. In exchange, other entrepreneurs may invest in them.
A rental property can be a good investment that can end up yielding high returns, depending on its location. A rental property is an investment of both time and money, but for a Millennial entrepreneur who has both, real estate can help to improve a portfolio. This is because real estate isn’t as volatile as the stock market and it’s possible to start small. If owning a rental property solo isn’t affordable just yet, sharing the costs can help Millennials to enter the real estate market.
For Millennials looking for a bigger risk that also comes with the possibility of higher return, Forex trading can be a good investment. Forex trading is foreign currency trading and involves trading dollars for other currencies. The idea is to anticipate when currencies change in value and make trades that will result in gains for the investor.
Talk To A Financial Planner
The best investment a Millennial can make is time spent with a financial advisor. Financial planning with a professional financial planner can help Millennial entrepreneurs to maximize their potential returns and earn enough to put more into their own businesses as well.