3 Investment Tips for Millennials

 

 

Let’s be honest, investing isn’t always easy – at least it doesn’t always seem that way. With so many different options available on the market (from mutual funds to stocks), choosing the best strategy can be overwhelming. That’s where the assistance of a financial advisor comes into play.

 

It’s very easy to get caught up in hot tips, news headlines and guidance from family and friends. It seems like everywhere we look someone is giving millennials investment tips. The truth is finance is personal, and that’s why it’s so important to get tailored advice from a professional. With that being said, there are some pieces of advice that all young investors should know.

 

Here are three investment tips for millennials who want to start investing:

 

Start as early as possible

 

Yes, that’s right, young people should have started investing way before they were coined as millennials. As soon as you have an income (no matter how big or small) a portion of your paycheque should go into savings.

 

Thanks to a little thing called compound interest there are big benefits for millennials who start investing early. Compound interest helps your investments grow faster because your monthly earned interest (or dividends or capital gains) is reinvested back into your account. Therefore, the next month you earn interest on the previous month’s interest and so on for years to come. It’s brilliant.

 

Think long term with your strategy

 

According to Forbes, investing for the long term helps millennials see the bigger picture when it comes to risk versus reward in your portfolio. “Risk is kind of like that friend who regularly cancels plans but always comes through in a pinch. There might be heartache in the day-to-day, but in the long run, you’ll be glad you stuck it out.

In investing, more risk means the potential for more reward. Could you lose money and never collect that premium? Sure, but that’s unlikely when you’re in it for the long-term.”

 

Be honest with your financial advisor

 

Professional advice can help find an investment strategy that fits your individual plan, financial capabilities and life goals. However, that can only happen if you are completely honest with your advisor.

 

Think of a financial advisor as your financial doctor, they can’t totally assess the situation and provide a recommendation until they have all the information. This includes your short term and long-term goals, tolerance for risk, time horizon and general knowledge of the investing world.

 

If you have questions about investing or want to start investing but don’t know where to begin, I’m happy to help. Let’s chat about your goals and investment options for millennials.

 

*This content was originally created by Manulife Securities for information purposes only. It has been distributed for advisor publication.*

Baseball’s back!

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Major League Baseball’s Opening Day. There’s something about the first pitch of the season that makes it feel like spring is finally here, even if the weather suggests otherwise.

If you’re a Blue Jays fan, there’s plenty to be excited about this year. The team’s got most of its starting pitchers back, and most of last year’s solid lineup as well. Here’s hoping this season brings another trip to the playoffs and maybe – just maybe – a berth in the World Series.

If you’re a Yankee or Red Sox fan, which everybody seems to be if they don’t pull for the Blue Jays, you have a lot to be excited about too. 2017 is shaping up to be a good year in the American League, and will probably feature a tight pennant race right down to October.

When I was thinking about the return of baseball and doing some reading online, I found these pretty interesting facts about the game – in particular, from a finance/investing perspective.

In 2017, the sport’s highest paid player is Clayton Kershaw of the Los Angeles Dodgers. This year, he’ll earn a cool $33,000,000. That’s roughly one million dollars for each game he’ll pitch. For comparison’s sake, in 1930 baseball’s top-paid player was Babe Ruth. His salary? $80,000.

However, while that may look shabby compared to Kershaw’s 33 mil, keep in mind that the Babe was making more than then-U.S. President Herbert Hoover. When a reporter asked the Sultan of Swat (he was a man of many nicknames) what he thought of making more than the President, Babe replied, “I had a better year than he did.”

If you collected baseball cards as a kid – or even if you still do - you may be interested to know about the most valuable card in existence today. It’s a 1909 card of Honus Wagner, produced by the American Tobacco Company and distributed in cigarette packs. Perhaps you’ve heard of the card; it was famously purchased at auction by Wayne Gretzky in 1991…for a mere $451,000. Since then, that same card has changed hands a couple of times, most recently bought by Arizona Diamondbacks owner Ken Kendrick for almost $3 million.

The card is that valuable because of its rarity. Wagner demanded that production of the card be stopped – although his reasons for doing so are still being debated. At any rate, it’s made some collectors very, very wealthy, and made a lot of people comb through their attic looking for any hidden gems in their own collections!

So if you’re a baseball fan, enjoy the season and I hope it turns out the way you’d like. If not, just remember the classic slogan used by Brooklyn Dodger fans:

“Wait ‘til next year!”