Millennials, all 76 million of them, are outpacing the Baby Boomers in economic spending and population. The defining characteristic of this millennial, tech-savvy generation is that they witnessed first-hand the consequences of reckless and irresponsible financial speculation and spending. As a result, more of them are choosing to invest a portion of their income and build financial roadmaps that give them a financial cushion for the future.
This is wildly different from the Baby Boomer generation, which witnessed the expansion of easy credit and increased buying power, at the cost of rock-solid retirement picture.
Investing has reached the palm of our hands. An iPhone or android user can use apps to invest and compare different financial funds. With the level of comfort that millennials have with their devices, financial products have become a major growth area for app development and internet infrastructure. Companies like binaryuno.com have surfed the wave toward technological investing and millennials are increasingly choosing automated systems to manage their portfolio.
As technology provides information and market insights to people at the tap of a finger, financial advisors no longer have the monopoly on financial insights and portfolio growth strategies. While sophisticated investors will still want to consult the insights and expertise of an experienced fund manager, entry-level investors can get away with more simplistic investment models.
For many entry-level investors, an index fund can prove a great vehicle to building long-term wealth. Mutual funds may have been the hot commodity of 2000 and late, however today index funds offer the diversity of a mutual fund with generally lower fees. Unmanaged funds are great ways for tech-savvy investors to do their own research, park their money and enjoy the relatively safe gains, especially over years of compounding growth.
An example of this trend is a series of recent articles surrounding Donald Trump, a real-estate mogul that entered into the 2016 presidential race. While he brags about make a fortune in real estate, many contemporary financial pundits point out that if he had simply parked his money in an S&P 500 index fund, he would have billions more in the bank.
Yes, you read that right. Building a real estate empire is potentially much less profitable than vacationing and letting your money work for you in an unmanaged fund. Is it any wonder that millennials are letting apps and virtual portfolio managers plan their retirement while remaining up to speed on the latest in financial development that affect their self-maintained portfolio?
