When it comes to saving and investing money wisely it can be difficult finding a place to start but it's important to start as soon as you can.
Saving money and investing in stocks is not something everyone is familiar with and Justin Adams is one of many millennials in the community who talked about why he hasn’t started.
“I don’t know how, I have no idea how to do that,” Adams said.
However, Eric Phelps, an investment executive, said financially preparing for your future is a must, and if you earn a salary it can all start with your 401(K).
“Always participate up to the match if your employer matches your 401(K) what you put in that is free money we always like free money,” Phelps said.
Once you’ve maxed out your 401(K), Phelps said if you qualify you should then open a Roth IRA.
“The good thing about a Roth IRA is the money it’s going to grow tax-deferred and if they wait until they're 59 and a half to start pulling the money out, it will come out as tax-free income."
Experts also said once millennials have maxed out both the 401(K) and the Roth IRA, they suggest moving to tax-efficient investing in a brokerage account. This type of account will allow the money to grow without having to pay a lot of taxes on it. And when it comes to investing in the stock market Phelps suggested that millennial's only invest in stocks they are familiar with.
“A lot of millennial's they're interested in what we call the FANG stock that’s Facebook, Apple, Netflix and Google. The last thing would be alternative investing such as real estate,” Phelps said.
Technology seems to be the most popular and for those millennial who are willing to take the risk, and experts suggest seeking professional advice if they want to have a better future.
Copyright 2017 KXXV. All rights reserved.
