A recent article in a financial magazine made a clear distinction between the Baby Boom generation and the 20-somethings today.
Boomers had it good, reaping “the rewards of the chemical revolution, the golden age of manufacturing, the computer revolution, the information age, energy abundance and globalization” — not to mention the debt-fueled gains that “turned the U.S. into today’s debtor nation” — so they could afford to wait until they were in their forties to start saving, the website says.
Gen Yers, meanwhile, have to contend with “a nearly bankrupt nation, rising global competition from emerging countries, crumbling infrastructure and insolvent retirement and welfare programs,” according to MarketWatch.
Worse, Gen Y, its vanguard just entering its peak earnings phase, takes a jaundiced view of capital markets that have been rattled since the late 1990s by meltdowns, recessions, Ponzi schemes, scandals and volatility, the article says.
The answer? Get started early rather than wait for middle age to begin to invest. The most valuable asset in a person’s life is time and the power of compounding. And to go along with this there’s one more thing:
MarketWatch suggests they “find a good and trustworthy adviser.” The website adds: “While advisers do charge fees that can undermine returns, in this case it’s still a net positive over the high cash many Gen Y’ers are holding.”
We could not agree more. Even if the only place you can save is in your employer’s 401(k) plan, we can help you create an investment portfolio that will help you invest like a professional.