Looking for an investment strategy that works for you? Millennial Money can get you on the right track to a successful retirement.
When you look at how different generations are investing, it becomes apparent that Millennials are missing out. They just aren't investing at the rate that many experts think they should be. Millennials remember the stock market crash — and they might even remember stressed dinner conversations during the Great Recession. All of this has led to skepticism about stocks, and a reluctance to invest.
Unfortunately for them, if they don't start investing now, Millennials could find themselves quite a bit short during their retirement years. In order to help remedy the situation, Patrick O'Shaughnessy has written a book aimed at investing.?[easyazon_link asin=”1137279257″ locale=”US” new_window=”default” nofollow=”default” tag=”moneyseed-20″ add_to_cart=”default” cloaking=”default” localization=”default” popups=”default”]Millennial Money: How Young Investors Can Build a Fortune[/easyazon_link] takes a look at what the younger generation can do now to ensure a better retirement later.
Millennial Money Delivers A Wakeup Call
O'Shaughnessy is a Millennial, and he understands their fears. However, he has a very solid investing background, since his father, James P.?O'Shaughnessy, is the author of?[easyazon_link asin=”0071625763″ locale=”US” new_window=”default” nofollow=”default” tag=”moneyseed-20″ add_to_cart=”default” cloaking=”default” localization=”default” popups=”default”]What Works on Wall Street, Fourth Edition: The Classic Guide to the Best-Performing Investment Strategies of All Time[/easyazon_link].
I like that?O'Shaughnessy delivers a wakeup call to Millennials. He lays out the situation in a relatable and understandable way. Rather than using massive numbers that most of us can't really grasp anyway, he breaks it down in terms that anyone can understand. He points out that one dollar invested now translates into $15 in 40 years. However, if Millennials wait 10 years to start investing, that one dollar is only going to be $7.50. It's the sort of illustration that you can wrap your head around.
Not only does?O'Shaughnessy lay it on the line, being realistic about what Millennials can expect from Social Security and other challenges, but he also provides helpful insights into how Millennials can build their portfolios.
O'Shaughnessy focuses mainly on tried and true methods that I agree with, like indexing. He has a few other, more aggressive, suggestions, but mostly he focuses on value investing and indexing. The writing is accessible, and anyone who wants a primer in how to get started with investing can benefit from this book.
I also like the way that?O'Shaughnessy takes time to talk about the relationship between risk and reward, and how he ventures a little bit into the waters of behavioral finance and the fears that hold many young (and even old) investors back. He also includes various charts and illustrations that can help the reader visualize what is happening, and really see the positive impact that investing can have on the future.
One of the things I wished there was more of was information on the Roth IRA. I'm a huge fan of the Roth IRA, and I think it can be a great tool for anyone — especially Millennials. My son is in whatever generation follows Millennials, and he already has a Roth IRA.
Overall, I found Millennial Money to be a great read. It's a solid resource for beginning investors. I think that Millennials can benefit from it, and younger Gen Xers could get a lot out of it as well, particularly if they have been slow to get started with investing.
The longer you wait, the less you'll have.