Investing for Millennials

Investing for Millennials

Technology has been continuously shaping the landscape of our daily lives. Gone are the days in which you needed to hire the services of a personal broker for them to go into the stock exchange and scream their lungs out to get you into the share market. Nowadays with the help of technology you have access to the entire listed sharemarket at a click of a button, making transactions easier, cheaper and more transparent.

 

Technology has also helped us make investments available to a considerable portion of the population to the point that you no longer need any savings to start investing. This may sound completely senseless but “Micro investing” is now a possibility.  the best thing is you can use your spare change to start investing, instead of leaving it on your bedside table or in your car’s ashtray.

 

Mobile phones are now part of our daily lives and these days there are applications that can virtually do any task we want, including micro investing. For example you can now download an app called Acorns. This app works by rounding up your purchases to the nearest dollar amount and using the change to invest on your behalf.

 

As with any investment account you will be given a choice of portfolio with different levels of risk. Although these portfolios are relatively simple they will allow you to have exposure to the markets. Depending on the application you use, you should have the option of customising your portfolio, allowing you to increase or decrease your exposure to risky assets.

 

Many other applications have been developed with similar features. However it is important you understand the underlying risk and manage your expectations when investing using any of these products. These are not savings accounts and the value will often fluctuate.

 

Applications are designed to allow you to start investing with no initial deposit. It forces investing upon you by creating a small investment account that will continue to grow with each transaction.

 

So if you decide to use any of these platforms, make sure you understand the product, know the fees and consider your options.

 

If you have any questions relating to this article, or about financial planning in general, please don’t hesitate to email me at davidp@lanyonpartners.com.au

 

Disclaimer:
The information contained in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial planner or other relevant adviser before acting on any information contained in the article. Taxation, legal and other matters referred to are of a general nature only and should not be relied upon in place of appropriate professional advice.