3 Financial Tips for Millennials
Financial planning for the Millennial generation combines traditional investments with modern technology. The following three tips provide guidance on how today’s generation should manage money in the future.
The digital age is full of threats that could damage anyone’s financial health. Cyber attacks can steal an individual’s financial information. At any instant, millions of credit cards can be virtually stolen by hackers. These days, people often shop online and make other electronic money transfers between bank accounts or other funds. Even major department stores and other retailers have experienced serious breaches in their payment processing systems. It’s important to purchase professional identity theft services that fully protect the financial well-being of modern consumers.
Real Estate Investment
There are tremendous growth opportunities in the real estate market of the United States. Smart investors should consider purchasing residential properties in cities or metropolitan areas that are expected to thrive in the future.
Fast growing cities may offer cheap land and homes that could double in price a decade from the date of purchase. Certain cities in the United States have been experiencing rapid growth since the 1990s. Raleigh, Dallas, Salt Lake City and Phoenix are some of the fastest growing cities of the 21st century. Young investors could buy affordable homes on the outskirts of such cities with a variable rate mortgage that can be paid off in about 15 years.
At retirement age, you can then sell the properties or even look into something like an AAG reverse mortgage to pull the equity out of the home.
Planning For The Far Future
The increasing life expectancy in the United States creates a need to plan for retirement and beyond. The Millennial generation is expected to have an average life span of more than 100 years. This means that people can expect to live relatively active lives for decades after retiring. Traditional 401k and 403b plans are great for long term retirement planning. Term life insurance policies could also be used to withdraw money after retirement. Diversified long term investments also include mutual funds and private equity funds that are immune from any stock market crashes and economic recessions. Smart retirement planning should also include funds for long-term health care such as rehabilitation services and assisted living.
Identity theft prevention, real estate investment and retirement planning are essential components of a stable financial future. The Millennial generation can also use digital technology to properly and securely manage personal finances.