Millennials face unique financial challenges compared to previous generations, but one thing remains constant: the importance of investing in stocks to build wealth. Understanding the stock market and how to start your investment journey could position millennials for long-term financial success. By determining your investment goals, assessing risk tolerance, and exploring investment opportunities, millennials can navigate the world of stocks and potentially secure a more stable financial future.
Before diving into the stock market, millennials need to maximize retirement accounts and understand the principles of diversification. Incorporating strategies like dollar-cost averaging and leveraging the power of compounding can help achieve financial goals while navigating market fluctuations. Building an emergency fund, managing debt and investments, and understanding tax implications are crucial to investment success.
- Millennials should gain a solid understanding of the stock market and determine their investment goals before diving in.
- Diversification, dollar-cost averaging, and leveraging compounding are essential strategies for successful investing.
- Building an emergency fund and managing debt alongside investments are vital for long-term financial stability.
Understanding the Stock Market
Basics of Stocks
Stocks represent shares of ownership in a company. When individuals invest in stocks, they essentially buy a small portion of the company. As the company’s value increases or decreases, so does the value of the individual stocks. Stocks can be a lucrative investment for millennials, providing the potential for significant long-term growth through compound interest and capital gains.
Investing in individual stocks typically offers higher potential returns but also carries higher risks compared to investing in diversified baskets of stocks like mutual funds or exchange-traded funds (ETFs). Millennial investors must clearly understand their risk tolerance, investment objectives, and the time horizon for their investments.
The stock market is a network of exchanges where shares of public companies are bought, sold, and traded. Some well-known stock exchanges include the New York Stock Exchange (NYSE) and the Nasdaq. These exchanges act as marketplaces for stocks, connecting buyers and sellers and providing a platform for trading stocks.
Each stock exchange has its listing requirements and regulations, which companies must adhere to to have their shares listed and traded on the particular exchange. For millennial investors, understanding the dynamics of these stock exchanges is essential to executing informed investment decisions.
When choosing stocks to invest in, it’s essential to research the stock market basics and become familiar with crucial stock market terms, such as market capitalization, price-to-earnings ratio, and dividend yield.
In summary, millennials looking to invest in stocks should start by understanding the basics of stocks and stock exchanges, determining their risk tolerance and investment objectives, and conducting thorough research on companies they are interested in. This foundation will help them navigate the stock market and make informed decisions to grow their investment portfolio.
Starting Your Investment Journey
Creating an Investment Plan
Before diving into investing, millennials need to create an investment plan. An investment plan should outline your financial goals, risk tolerance, and time horizon. Evaluate your current financial situation and determine how much you can invest regularly.
Consider setting up automatic contributions to your investment accounts, which can help with consistency and encourage a long-term mindset. Fintech platforms such as robo-advisors are increasingly popular among millennials, offering automated investment management and catering to beginners.
Choosing the Right Broker
Selecting the right broker is a critical step in your investment journey. Millennials have various options, from traditional brokerage firms to online platforms and fintech solutions. When comparing brokers, consider factors like:
- Fees and commissions: It’s essential to understand the costs associated with each broker, which can include trading fees, account maintenance fees, and others.
- Investment options: Ensure the broker offers a wide range of investment options, such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs).
- Technology: Look for a broker with user-friendly mobile apps and web platforms, making investing more accessible and seamless.
Among millennials, fintech companies like Robinhood, Betterment, and Wealthfront have gained popularity, as they generally cater to newer investors and prioritize simplicity, low fees, and convenience.
Remember, investing is a long-term endeavor, and setting solid foundations with a thought-out plan and the right broker will increase your chances of success on this journey.
Determining Your Investment Goals
Before millennials start investing in stocks, setting clear and specific investment goals is essential. This section will cover the process, emphasizing the balance between short-term and long-term goals and the importance of retirement planning.
Short-Term vs Long-Term Goals
Short-term goals typically need to be achieved within the next five years. Examples include saving for a down payment on a home, starting a business, or taking that dream vacation. In contrast, long-term goals take over five years to achieve and often involve building wealth and financial security. These goals might include saving for children’s education, paying off a mortgage, or making a comfortable nest egg for retirement.
Millennials should consider how their investment mix can help achieve short-term and long-term goals when investing. A diversified portfolio with a mix of stocks, bonds, and other assets can help to meet different financial objectives. For short-term goals, investing in less volatile assets such as bonds or short-term CDs is essential, while long-term goals can incorporate more growth-oriented investments like stocks.
One crucial long-term investment goal that millennials should prioritize is retirement planning. With people living longer and pensions becoming less common, it’s essential to have a solid financial foundation for retirement. One popular investment tool for retirement savings is the 401(k) plan, which allows employees to contribute pre-tax dollars to a retirement account. Another option is an Individual Retirement Account (IRA), which offers similar tax advantages but is not tied to an employer.
It’s never too early to start planning for retirement, as compound interest’s power helps build wealth over time. Start by estimating expenses in retirement and creating a savings target. Then, invest regularly and adjust contributions as needed to achieve the desired retirement nest egg.
By setting clear investment goals, millennials can begin their journey in stock investing with confidence and focus. Remember to maintain a balance between short-term and long-term goals and make retirement planning a top priority.
Assessing Risk Tolerance
When it comes to investing, millennials must understand the concept of risk. Risk in investing refers to losing some or all of the initial investment. It is often associated with volatility, the degree to which an investment’s price can fluctuate over time. A higher volatility generally means a higher risk. Millennials should acquaint themselves with the different types of risks, such as market, credit, and liquidity, to make well-informed decisions about their investments.
To assess one’s risk tolerance, it’s essential to consider factors like investment goals, time horizons, and personal financial situation. Various tools online, such as Investor.gov’s risk tolerance questionnaire, can help determine an individual’s comfort level with various investment risks.
Risk vs Reward
Risk vs reward is vital for millennials to comprehend before jumping into investing. Simply put, higher risks generally offer higher potential rewards, while lower risks are associated with lower potential returns.
The relationship between risk and reward can be represented in a table format:
|Typical Investment Types
|Savings accounts, bonds
|Balanced mutual funds
|Individual stocks, ETFs
A good starting point for millennials when investing in stocks is to create a diverse portfolio. This approach helps spread risks across various assets and sectors, consequently maintaining an overall risk level that aligns with their risk tolerance. By carefully balancing risks and rewards, millennials can make intelligent investment decisions that match their long-term financial goals.
Exploring Investment Opportunities
Individual Stocks vs Mutual Funds
Millennials looking to invest in stocks might consider individual stocks or mutual funds. Investing in individual stocks allows for a more direct approach to investing, where an investor selects specific companies. On the other hand, mutual funds pool money from multiple investors and allocate the funds across a diversified portfolio of stocks.
When investing in individual stocks, it is essential to research and analyze the companies before investing. This allows investors to understand their investment choices better and make informed decisions. Contrastingly, investing in mutual funds can be less time-consuming and overwhelming as professional fund managers are responsible for handling the investments. Additionally, mutual funds provide diversification and exposure to various industries, reducing the risk of investing in single stocks.
Bonds and ETFs
Other investment opportunities millennials might consider are bonds and exchange-traded funds (ETFs). Bonds are fixed-income investments that provide a steady flow of income through interest payments at regular intervals. Governments, municipalities, and corporations can issue them. Bonds can be an excellent addition to a millennial’s investment portfolio as they help to minimize risk and provide stable returns. For a comprehensive guide on investing in bonds, visit U.S. News.
Like mutual funds, ETFs pool investors’ money and provide a diverse range of investments across various asset classes, such as stocks and bonds. However, ETFs are traded on stock exchanges like individual stocks, providing more flexibility and generally have lower management fees when compared to mutual funds. They come in various types, such as index funds, which track major market indices, providing passive investment opportunities for millennials.
Millennials can explore investment opportunities, such as individual stocks, mutual funds, bonds, and ETFs. They should assess the risks and rewards associated with each option and make informed decisions based on their financial goals and risk tolerance.
Maximizing Retirement Accounts
A 401(k) plan is a popular employer-sponsored retirement savings plan. Most employers offer a matching contribution as an incentive for employees to participate. It is highly recommended that millennials take advantage of this match by contributing at least the minimum percentage required to receive the total match amount. The contributions to a traditional 401(k) are made on a pre-tax basis, which reduces the taxable income, leading to a lower tax payable.
Some employers might also offer a Roth 401(k) option, which is funded with after-tax dollars but allows for tax-free withdrawals in retirement. This might appeal to millennials who expect to be in a higher tax bracket when they retire.
- Benefits of 401(k) Plans:
- Employer match: Many employers match employee contributions up to a certain percentage, which means “free money.”
- Higher contribution limits: The annual limit for 401(k) contributions is higher than that of IRAs, allowing for more incredible potential growth.
IRAs and Roth IRAs
An individual Retirement Account (IRA) is a tax-advantaged savings account that anyone can open, regardless of their employment status. There are two main types of IRAs: Traditional and Roth.
A Traditional IRA allows individuals to make pre-tax contributions, similar to a traditional 401(k), thus reducing the taxable income for the year. The amount contributed grows tax-deferred until it is withdrawn in retirement, at which point it is taxed at the individual’s current income tax rate.
A Roth IRA is funded with after-tax dollars, and investments within the Roth IRA grow tax-free. This means that upon withdrawal in retirement, there are no additional taxes to be paid. This can be especially advantageous to younger investors who may currently be in a lower tax bracket and anticipate higher future earnings.
- Benefits of IRAs and Roth IRAs:
- Flexibility: Contributions can be made regardless of employment status.
- Tax benefits: Depending on the type of IRA chosen, individuals can take advantage of tax deductions or tax-free growth.
Millennials can build a strong foundation for future financial security and retirement goals by maximizing contributions to these retirement accounts. It’s essential to regularly review and adjust contributions and investment strategies to align with changing goals and circumstances.
Principles of Diversification
Asset allocation is crucial to investing, as it helps investors create a balanced and diverse portfolio. It involves dividing your portfolio into different types of investments, such as stocks, bonds, and cash, to minimize risk and maximize returns; for millennials new to investing, starting with a diverse mix of assets is essential. A diversified portfolio can protect investors from market fluctuations and provide a smoother long-term return.
When allocating assets, millennials should consider factors such as their risk tolerance, investment horizon, and financial goals. Typically, a younger investor may give a higher percentage to stocks, as they can withstand the heightened risk in exchange for potentially higher returns. As time progresses, the investor’s portfolio can be adjusted based on changing needs and risk tolerance.
Managing Portfolio Balance
Maintaining the appropriate balance in a portfolio is essential for successful investing. As the values of stocks and bonds change, the initial allocation of assets may become distorted. To manage this, investors should regularly review their holdings and rebalance their portfolios as necessary.
Managing the portfolio may involve transferring funds from overperforming assets to underperforming ones or adding new investments to enhance diversity further. Regular assessments can help maintain the desired asset allocation and reduce the risk of overexposure to a particular asset class.
Investors may choose to rebalance their portfolios on a set schedule, such as annually or quarterly, or when the proportions stray a certain percentage from the target allocation. By consistently monitoring and managing portfolio balance, investors can be confident that they are staying on track to achieve their financial goals.
In summary, diversification is essential for millennials looking to begin investing in stocks. By incorporating asset allocation principles and managing portfolio balance, millennials can build a well-rounded, resilient investment strategy.
Incorporating Dollar-Cost Averaging
Dollar-cost averaging (DCA) is a strategy millennials can use to start investing in stocks. It involves regularly investing a fixed amount of money, regardless of the stock market conditions. This approach helps to avoid the pitfalls of attempting to time the market. Instead of investing a large lump sum, you can split your money into smaller portions and invest gradually over time. For example, instead of investing $10,000 upfront, you might invest $1,000 monthly for ten months, as described in The Motley Fool. By doing so, you can potentially reduce the impact of market fluctuations on your overall investment.
Market volatility is essential when investing in stocks, especially for young investors like millennials. The stock market can experience significant ups and downs, and dollar-cost averaging can help reduce the effects of this volatility. During periods when the market is down, you will purchase more shares at lower prices, and conversely, when the market is up, you will buy fewer shares at higher prices. Over time, this approach can help establish a more balanced average cost per share.
To visualize this strategy, consider this brief example:
|Stock Price ($)
Using DCA, your average cost per share over these four months would be
$16.04, which is lower than if you had invested a lump sum at the beginning and purchased all the shares at
In summary, incorporating dollar-cost averaging into your investment strategy allows millennials to begin investing in stocks without constantly monitoring the market for perfect timing. It’s a method that can help reduce the impact of market volatility on your investments, providing a more consistent and manageable approach to building wealth over time.
The Power of Compounding Interest
One key strategy for millennials investing in stocks is to use the power of compounding interest. Compounding interest refers to the reinvestment of earned interest – this means that as you earn interest on your investments, that interest is subsequently reinvested, allowing you to make interest on both the initial principal and the previously reinvested interest. This process can lead to exponential growth in your invested funds over time.
The remarkable aspect of compounding interest is its ability to magnify returns over extended periods. This can provide a significant advantage for millennials, who usually have several decades until their retirement.
To understand the benefits of compounding interest, consider the following example:
- Initial Investment Amount: $10,000
- Annual Rate of Return: 7%
- Investment Duration: 30 years
With compounding interest, the formula for calculating the future value of your investment is:
FV = PV * (1 + i/n)^(nt)
FV is the future value, PV is the present value (your initial investment), i is the annual interest rate, n is the number of interest compound times per year, and t is the number of years.
In this example, the interest compounds annually (n=1). Therefore:
FV = $10,000 * (1 + (0.07/1))^(1*30)
FV = $10,000 * (1.07)^30
FV ≈ $76,123
After 30 years of compounding interest, the initial $10,000 investment would grow to approximately $76,123. Without compounding, your investment would only be worth $31,000 (the principal plus the interest earned: $10,000 + $21,000).
To maximize the power of compounding interest, millennials should consider the following factors:
- Start early: The earlier you begin investing, the more time your investment has to compound and grow.
- Contribute regularly: Regularly adding your investment can help increase the compounded overall amount.
- Reinvest dividends: For stocks paying dividends, reinvesting these earnings can further enhance compounding.
It is important to remember that while compounding interest can be a powerful tool to grow investments, the stock market is not without risks. Diversifying your investment portfolio and researching different strategies are essential to understand the market better and make informed decisions when investing in stocks.
Navigating Market Fluctuations
Dealing with Recession
A recession is a period of economic decline and can significantly impact the stock market. During a recession, stock prices may decrease, making it an ideal time for millennials to consider investing in stocks. This is because they can purchase lower-priced stocks, increasing the potential for higher returns when the market eventually recovers. However, millennials need to be prepared for potential losses during this time. One way to mitigate these risks is by diversifying their investment portfolio, including a mix of stocks, bonds, and other investments.
An essential factor to consider during a recession is inflation. Inflation, characterized by an increase in the general price level of goods and services, can directly affect the value of stocks. In some cases, higher inflation may lead to decreased purchasing power, reducing corporate profitability. Millennials should pay attention to the investing trends and statistics during this time and make informed decisions based on these factors.
Reacting to Market Changes
Reacting to market changes is crucial for any investor, including millennials. A long-term investment strategy is one of the most effective ways to respond to market fluctuations. By remaining focused on long-term goals and objectives, millennial investors are likelier to stay calm during volatile market periods. They should also consider regularly reassessing and adjusting their portfolios to align their investments with their goals.
Millennials should also practice emotional discipline during market fluctuations. Many investors are tempted to sell their stocks when prices fall, fearing further losses. However, this may not always be the best strategy, as markets often rebound after a downturn. Instead, young investors should focus on maintaining their diversified portfolio and considering recent market trends, long-term prospects, and company fundamentals when making investment decisions.
Lastly, investing in education and staying up-to-date with financial news can help millennials make more informed decisions in response to market changes. By learning from reliable sources, millennial investors can better understand the potential implications of market fluctuations and react in ways that enhance their long-term financial success.
Building an Emergency Fund
The Role of Savings
Before millennials dive into investing in stocks, it is crucial to establish a solid financial foundation. One key aspect of this is building an emergency fund. Savings are critical in ensuring financial stability in unexpected events, such as job loss, medical emergencies, or car repairs. Typically, financial experts recommend having at least three to six months’ worth of living expenses saved in a separate account. This ensures that millennials have a cushion to fall back on during unforeseen circumstances and can avoid going into debt or depleting their investments.
Regarding the storage of emergency funds, accessibility to cash is essential to meet urgent financial requirements. Therefore, millennials should consider opening a separate critical savings or money market account for their emergency fund E*TRADE. These accounts typically offer a low-interest rate but provide quick access to cash when needed.
Here are a few simple steps to build an emergency fund:
- Set a specific target: Determine how many months of living expenses need to be saved. As mentioned earlier, the recommended range is three to six months.
- Create a budget: Assess current spending habits and make necessary adjustments to allocate a specific portion of income towards the emergency fund regularly.
- Automate the process: Set up automatic transfers from a primary checking account to the dedicated emergency fund account.
- Monitor progress: Regularly review and adjust the contribution amounts or targets as needed.
In conclusion, saving and establishing a robust emergency fund is a crucial first step for millennials before delving into stock investing. By doing so, they can ensure they have a safety net to protect their financial well-being against unforeseen circumstances, enabling them to pursue their investment goals without unnecessary risks confidently.
Managing Debt and Investments
Credit Card Debt
Millennials often face the challenge of managing credit card debt. High-interest rates can cause concern and hinder their ability to start investing. To effectively manage credit card debt, millennials should:
- Create a budget: Keeping track of expenses can help identify areas to cut back, allowing individuals to allocate more funds toward paying off debt.
- Prioritize high-interest debt: First, focus on paying off the credit card with the highest interest rate.
- Consolidate debt: Consider options like balance transfer credit cards with low introductory rates or personal loans to pay off high-interest debt.
Student loan debt is another significant obstacle for millennials looking to start investing. Here are some key strategies to help manage student loans:
- Understand your repayment options: Federal student loans offer income-driven repayment options, which can help make monthly payments more manageable.
- Consider refinancing: Review your interest rate and explore options to lower your monthly payments and overall loan costs.
- Employer assistance: Some companies offer programs to help employees pay their student loans. It’s essential to explore such opportunities to reduce the financial burden.
When both credit card and student loan debt are managed effectively, millennials will have a better financial foundation to start investing in stocks. They can take steps toward a more secure future by staying informed and making sound financial decisions.
Understanding Tax Implications
When millennials start investing in stocks, it’s essential to understand the tax implications of those investments. This knowledge will help you make informed decisions and save money in the long run.
One way to minimize the tax burden on your investments is through tax-efficient investing. This involves choosing investments with favorable tax treatment or utilizing specific strategies to reduce taxable income.
- Dividend stocks: Some stocks pay regular dividends to investors, typically taxed lower than ordinary income. By investing in high-quality dividend-paying stocks, you can potentially reduce the taxes on your investment income. However, it is essential to know that dividends are not guaranteed, and companies can choose to reduce or eliminate them.
- Long-term capital gains: Stocks held for more than one year are subject to long-term capital gains tax, often lower than the tax rate on short-term gains. You can take advantage of these lower tax rates by holding onto your investments for extended periods.
- Tax-advantaged accounts: Utilize tax-advantaged accounts like IRAs, 401(k)s, or Roth IRAs to save on taxes. These accounts allow you to defer taxes on your contributions, dividends, and capital gains until retirement or even avoid taxes on qualified withdrawals, depending on the account type.
- Tax-loss harvesting: This strategy involves selling an underperforming investment and using the loss to offset gains in other assets. This can help reduce your overall tax liability.
In conclusion, considering taxes when investing in stocks is crucial for millennials to make informed decisions and maximize their returns. You can significantly impact your long-term investment success by considering tax-efficient investing strategies and utilizing tax-advantaged accounts.
Emerging Investment Trends
Fintech and Online Investing
The rise of fintech has opened a new world of investing opportunities for millennials, making it easier for younger investors to access financial markets. These digital platforms use advanced technology to simplify the investment process and often offer low-cost, user-friendly options tailored to the needs of younger investors. Some popular fintech tools include robo-advisors and commission-free trading apps that allow starters to invest with minimal initial capital.
- Robo-advisors: These automated investment services manage portfolios with little human intervention, using algorithms to optimize and adjust portfolios based on your preferred risk tolerance and investment goals. This approach can save time while potentially reducing fees and increasing overall returns.
- Commission-free trading apps: As the name suggests, these mobile applications provide a platform for users to trade stocks, ETFs, and options without paying any commission fees. This helps young investors find a low-cost entry point into stock market investing.
Another significant trend that has captured the attention of millennials is cryptocurrencies. These digital assets, such as Bitcoin, Ethereum, and others, have experienced substantial growth in recent years. Although they are still in nascent stages and can be pretty volatile, cryptocurrencies offer the potential for high returns, making them an intriguing option for younger investors willing to take on more risk.
However, it is essential to understand the risks involved in cryptocurrency investment and tread carefully. Due to their relatively short history, it can be challenging to predict future price movements accurately. Therefore, it’s advisable to research thoroughly before investing and only allocate a small portion of your investment portfolio to cryptocurrencies.
In conclusion, the emerging investment trends among millennials mainly revolve around fintech, online investing, and cryptocurrencies. These options provide innovative opportunities for young investors to enter the market with more straightforward, cost-effective means and potentially high-reward investments. However, as with any investment, it is crucial to remain informed and cautious about the associated risks.
Frequently Asked Questions
What are the best strategies for millennials to begin investing in the stock market?
One of the best strategies for millennials to start investing is to adopt a long-term approach and begin with small, consistent investments. They should consider low-cost indexes or exchange-traded funds (ETFs) that provide broad market exposure. Dollar-cost averaging, a technique of investing a fixed amount at regular intervals, can also help mitigate market volatility. Learning about the stock market and investing is essential for sound decision-making.
Which mutual funds should millennials consider for long-term growth?
Millennials should consider mutual funds that emphasize long-term growth, focusing on diversified portfolios containing a mix of stocks and bonds. Low-cost, passively managed index funds can offer exposure to different sectors and industries, making them suitable for long-term investment. Before deciding, researching and comparing various funds’ expense ratios, historical performance, and investment objectives is essential.
How can millennials with a small amount of capital start to make profitable investments?
Millennials with limited capital can start by opening an individual or retirement account with a brokerage that offers low or no account minimums and commission-free trades. They can invest in individual stocks or ETFs, following a diversified strategy that includes different asset classes, sectors, and industries. Additionally, millennials can explore micro-investing platforms that allow them to invest small amounts of money, making it more accessible to begin the investing journey.
What steps can a beginner millennial take to effectively diversify their investment portfolio?
To diversify effectively, millennials should follow these steps:
- Determine their risk tolerance and time horizon.
- Create a balanced portfolio with a mix of stocks, bonds, and alternative investments.
- Allocate their investments among different sectors, industries, and geographic regions to minimize risks.
- Regularly review and adjust their portfolio to maintain the desired diversification level.
It’s also essential to continue learning about different investment options and actively manage their investments.
To what extent should millennials incorporate stocks into their retirement savings by age 30?
By age 30, millennials should aim to have a higher allocation of stocks in their retirement savings, as they have a longer time horizon to handle market fluctuations. A standard guideline is to allocate stocks according to the “120 minus your age” rule. For example, a 30-year-old would give 90% (120 – 30) of their portfolio to stocks and 10% to bonds and other conservative investments. This allocation may vary depending on the individual’s risk tolerance and financial goals.
Are there investment podcasts or resources tailored explicitly to millennial investors?
Yes, numerous sources provide investment guidance tailored to millennial investors. Podcasts such as “The Millennial Money Podcast” and “The Stacking Benjamins Show” can offer valuable insights and tips for millennials looking to improve their financial knowledge. Websites like Bankrate’s beginner guides and CNN Underscored Money can provide helpful information on investing basics and personal finance.
Investing in stocks is essential for millennials who want to secure their financial future. The key to success lies in developing a diversified portfolio and adopting a long-term investment strategy. Millennials can accumulate significant wealth over time by making informed decisions and staying disciplined.
Millennials should focus on financial education and equip themselves with the knowledge necessary to make informed investment decisions. Bankrate’s Beginner’s Guide to Investing is an excellent foundation.
Next, millennials must determine their investment objectives and risk tolerance. This will enable them to choose the right investment strategy that aligns with their financial goals. According to U.S. News, millennials should consider plans prioritizing long-term growth and taking advantage of compounding returns.
Furthermore, millennials should know the importance of consistently investing in the market. Through methods such as dollar-cost averaging, they can mitigate short-term market fluctuations and benefit from long-term market trends. Investors.com emphasizes the need for millennials to invest in stocks rather than relying on cash savings, which is often less effective for wealth accumulation.
In conclusion, learning how to invest in stocks is vital for millennials. Financial education, setting clear investment objectives, and staying disciplined in one’s approach are key factors that can lead to a successful investing journey. By doing so, millennials can work towards securing their financial future and achieving their long-term financial goals.