Millennial, you already understand financial planning, but might be confused about how to start investing, right?Starting an investment is easy as long as you want to learn and try it. Moreover, investment is the only way that can be taken to strengthen your finances in the future of course, without becoming a sandwich generation.
Do you know the sandwich generation?
That’s the generation that bears the burden on his family, besides the nuclear family. So that in the future, when we grow old we will not be a “burden” for our children and grandchildren, it is better to prepare a pension fund. One of them by having investment.
Let’s look at a few points how to start investing in millennials
Understand the Risk Profile
Each person has a different profile. Are you an aggressive or conservative type of investment? Or precisely both? It depends on you who determines the financial position.
Usually, millennial investors tend to be aggressive because there are no family dependents or other urgent needs dependents so that the return obtained will be greater. Nevertheless, it returns to you. The reason is any type and any instrument not all of the arguably the most appropriate for you. This is the point of knowing your risk profile and financial goals.
Choose a Reliable Investment
Choose an investment that has been licensed and has a distribution license. Besides, pay attention to the investment manager you choose. Make sure the investment manager has experience and is reliable in the investment world.
Diverse assets
After knowing your risk profile, the next step is to put your investment portfolio in various assets. Not just stocks, but put it in other investment instruments. Such as bonds, mutual funds, precious metals, and so on.
Why does it have to be diverse? Because if you put all your funds into one investment instrument, where would it fall? Then your investment will also be forfeited.
How about gold?
Even though there is no investment instrument that is most appropriate for everyone, you should put your portfolio in the number of assets. One asset that must not be forgotten is the precious metal, aka gold.
According to Forbes, gold must be in every investment portfolio. Regarding the amount, it depends on you. Usually, people who play conservatives will put assets in gold by 30 percent. Why is that? As you know, gold is easier to reach than other investments.
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