What are you saving for? A recent BMO study found that most millennials are more concerned about saving than any other age group. The bad news? We’re socking it away for short-term goals—hello, vacay—rather than budgeting for retirement.
That might be because the idea of retirement sounds so far off. But it doesn’t have to be. We asked two financial experts to answer all your most pressing investing questions.
Meet our experts:
- Bridget Casey, @moneyaftergrad: This award-winning entrepreneur runs Money After Graduation in Calgary. Within two years, she went from owing more than $21,000 in student loans to becoming a debt-free stock market investing pro.
- Kristy Shen, @KristyShen: She’s one half of the team behind Millennial Revolution and Canada’s youngest retiree. At 31, she gave up that 9-5 grind with $1 million in the bank and now travels the world with her husband Bryce. On a brief pitstop, she shared some of her expert advice with us.
Carefully select your investments, then leave them alone, says Bridget Casey (pictured left). “It’s the best way to manage your portfolio. Less trading usually means more money. Many people lose a lot money by actively buying and selling, trying to follow trends or reacting to normal market volatility. You can be your own worst enemy when it comes to building wealth in the stock market, so keeping your hands off your investments is one of the best ways to let them grow.”
When in doubt, stick to index funds, says Kristy Shen (pictured right). It’s the advice favoured by Warren Buffet and John Bogle, two incredibly successful investors, she says. Here’s the deal with index funds, they let you track a specific index, which represents a portion of the overall market, plus they’re great for first-time investors who are investing $10,000 or under. “We don’t advocate picking individual stocks,” says Shen. “We advocate using index investing and buying the entire market. In the long run index investing will consistently beat active investing. This is why Warren Buffet made a million-dollar bet that his index fund will beat actively managed hedge funds after 10 years. Eight years in, it looks like he’s winning.” Plus, Shen argues, index funds have extremely low fees and can’t go to zero.