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  • 5 Best Investments For Millennials In Arizona [2018]

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    Best Investments For Millennials In Arizona
    Did you know that 42% of millennials have not started saving for retirement? Retirement may seem to be far away, but if you want to enjoy your life after employment, you should prepare for it as early as now. The best way to build a solid financial foundation is to invest and grow your financial portfolio.

    Here are the five best investments for millennials.

    Stocks

    If you want your money to grow exponentially, you should consider investing in stocks. They're not complex as you fear them to be. With proper knowledge, you can get the best pick and reap the best returns. So how do you secure stocks? Purchasing stocks are similar to purchasing your share of a specific company. Several stocks that guarantee high returns are:

    Starbucks

    Starbucks is turning into a strong brand in the beverage market. Since 2004, the sales of domestic soda have reduced due to the presence of coffee chains. More people have ditched the sugary sodas in favor of coffee for health reasons.

    PayPal

    As digital payments become popular, Paypal is growing quickly. In 2017, its earnings per share (EPS) has increased to 27%. Though its stock price is high, you can gain long-term benefits as the company sustains its leadership in digital payments.

    PulteGroup Inc.

    This homebuilding company is expected to increase its EPS over the next five years as more Millennials start to purchase homes. Over the last 13 months, its stock price has increased tremendously, which reflects a very positive outlook of the company.

    If you assistance in stock investing, engage with a professional financial service company, like Suncorp Financial. We give investing advice for millennials in Arizona. We also offer retirement planning for millennials.

    Bank Savings Account

    Perhaps, the most risk-free type of investment is to open a bank savings account. However, the returns won't be big since the bank will pay you a low fixed interest rate. To get the highest interest rate, shop around banks.

    Comparison websites are a good tool for anyone wanting to find a suitable savings account. They won't offer similar results, though, so make sure that you utilize more than one site before you make a decision. It's also significant to do some research into the form of product and features you like.

    There are two types of bank accounts you can choose:

    Checking Account

    A checking account is utilized for daily banking transactions, including paycheck deposit, cash withdrawal, and bills payment. It doesn't restrict the number of transactions you do each month. When opting for a checking account, look for an account that doesn't charge a monthly maintenance fee and requires no minimum balance.

    Savings Account

    This type of account offers a safe place to store a large sum of money. It offers a higher interest rate so it's better to use it to save for your emergency fund.

    Retirement Savings Plan

    Retirement Savings Plan

    Only a few millennials are contributing to a retirement account. The majority aren't saving for retirement at all. If you belong to the majority, then you need to realize that retirement isn't too distant.

    Financial experts have warned that if you don't start saving for retirement, you'll miss a crucial opportunity. Taking too long to save means that you'll fall farther behind and miss out on the benefit of compound interest. You should know that time is the best asset when it concerns retirement savings plan.

    If your goal is to save for the future, then it's vital to select between a 401(k) plan and an Individual Retirement Account (IRA). Anyone who earns an income can fund the latter, but everybody has access to the former.

    Generally, the main difference between the two retirement plans has to do with contribution limits. At present, you can contribute up to $18,500 to a 401(k) and $5,500 to an IRA. The growth in either form of Roth account is fully tax-free, making them a better investment option than a regular savings account.

    Government Bonds

    Unlike regular savings accounts, government bonds aren't issued by banks but organizations and firms wanting to borrow money. These bonds can be retailed to other investors and usually have a higher variable interest rate. Though the security may not be similar to savings accounts, some protection laws may still be in place.

    Government bonds are a good option if you're a neophyte in investing. They're secure and offer a more interest rate than savings accounts. Before you make this investment, make your research into various types of bonds.

    Compared to stocks, bonds are safer because the risk of losing the principal is usually small. As bonds frequently do well, they can be a good diversifier on your portfolio when other asset classes perform poorly.

    Real Estate

    Investing in real estate, more specifically buying a home, is probably one of the best advice a financial advisor can give when preparing for retirement. Advantages of purchasing a house as a millennial include tax savings, avoidance of inflation, and setting equity.

    However, if you plan to live in a certain place for less than five years, then the best decision is to rent. Why? It's less expensive and suits well with your short-term goals. It takes at least seven years to acquire sufficient equity in a house, according to financial experts.

    You can also set your eye on foreclosed properties. Before you buy any foreclosed property or real estate, make sure that you know where to search. Feel free to speak with any real estate agent to help you find the best deals.

    Don't forget to get your bank loan approved to secure proper financing. If you have a bank loan ready, you get the upper hand against potential buyers. Inspect the property for any issues, so you don't end up with a poor investment.

    Retire with Suncor Financial. For a free consultation, contact us or call 480-748-5825 today!
    Curtis Ray
    May 02, 2018
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