Millennials are spoilt for choice when it comes to investing, from the stock market to bullion investments, and the millennial gen has too many options to choose from. This article has put down a list of investment opportunities for today’s generation. If you haven’t begun investing yet, you will get some tips from this article on what to invest, when, and how.
1. Stock markets
The most apparent investment channel for millennials is the stock market. Millions of Australians and New Zealanders are buying stocks of blue-chip companies, and so can you! A 2014 study estimated that just 6.4 % of all adult Australians invest in shares and securities. Stocks represent the ownership of any company, so when you buy them, you are becoming the owner of a company or companies.
There are two ways of buying stocks- buying them when the company is getting launched or buying them from an existing stockholder. In the former case, you are participating in an Initial Public Offering or IPO. You could also buy stocks from a stockbroker.
2. Investing in metals
The word ‘metals’ here primarily refers to gold, silver, and platinum. Some of the people invest in precious metals, whereas others are interested in strategic metals like copper, zinc, etc. Surprisingly, most Australians don’t buy gold. According to this study, just 15% of Australians have invested in the gold market. Perhaps they don’t realize the importance of investing in gold.
Millennials can profit from buying gold and silver. Gold, particularly, has a very high storage value and can hold its own when other assets are depleted. You can purchase gold to offset a falling dollar or when your stock is eroding. Buying gold is very easy. There are several companies all over Australia and New Zealand that give you expert advice on gold investing. Click here to know more on this subject.
Buying silver is also a great investment decision. This metal is inexpensive in comparison to gold and can be exchanged easily for cash in times of need. Copper and zinc are strategic metals and are in high demand among certain investors. You too can invest in these metals and make long-term gains.
3. Savings Deposits
This is the easiest investment that you can make. You make these investments when you deposit your salary or some recurring amount in a bank. After every month, six months or a year, you get some interest on the money deposited. This interest may not amount much but can buffer you from unexpected shocks like layoffs, etc.
4. Fixed Deposits
You could also deposit a certain amount for a certain period in your bank. This period can be six months, one year or even two years. In return, your bank will pay you a certain amount of interest. Please note that you are not allowed to withdraw your deposit before its maturity. The biggest advantage of this investment is that you can predict your earnings for a given period.
5. Life insurance
Most people consider investments only in terms of deposits, stocks, etc. But there is another form of investment that most people ignore – life insurance. Here, you are investing a certain sum of money in terms of premium periodically. In return, you are providing a cover to your dependents. This cover comes into effect when something unfortunate happens to you. In some cases, you can get loans or other benefits based on your premium paid.
If you have spare money, you could consider investing in government or private sector bonds. These are loans that you are advancing to these bodies. Bonds function pretty much the same as fixed deposits.