Sixty-one percent of millennials say that they are afraid of taking that first step in parting with their money in stock.
This is shocking given the bull market run experienced over the past seven years.
Moreover, it has been proven time and again that investing in stocks is one of the most efficient and effective ways of gaining significant increase in return on investment.
For example, the financial website howmuch.com notes that an investment of $1000 over the past ten years in the following stocks would yield a total of $78,598:
A $1,000 investment 10 years ago worth be worth $51,966 today.
$1,000 investment 10 years ago would be worth $12,398 today.
$1,000 investment 10 years ago would be worth $6,228 today.
$1,000 investment 10 years ago would be worth $4,687 today.
$1,000 investment 10 years ago would be worth $3,319 today.
These companies, overall, have proved to be good investments.
“All things being equal, prices seem pretty high right now. In fact, most of the companies on our chart have seen significant gains in recent years,” the site states.
Experts suggest that to get started in the stock market, one should consider index funds.
These types of funds are a safe bet, especially for new investors, since they fluctuate with the market, stay constant, and eliminate the risk of picking individual stocks.
Investing for the first time can be a big step, and it can be risky. Past returns do not predict future results. But if one finds the right stocks, it can lead to a real payoff.
That said, some of the reasons proffered by millennials for their lack of interest in the stock market are:
Fear of losing money
Lack of financial resources
Lack of stock market knowledge
Lack of trust in financial advisors
Given the fact that Millennials continue to lag so terribly behind their elders in investing in the stock market it means that financial and educational institutions have a lot to do in educating the current generation.
Carol Maye, Readers Bureau, Fellow
Edited by Jesus Chan
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