5 Actionable Low-risk Investing Ideas for Millennials

When it comes to investing for millennials, it feels like it’s for an old, white man according to a survey by Stash.

The survey also reveals that 4 in 5 millennials are not currently investing in the stock market, and 13% say they are are not able to invest because they are still paying off student debt. 34% say they don’t have enough money to invest.

This doesn’t sound good, what do you think?

It’s no secret, millennials make up the largest generation in the U.S history, yet they find it difficult to invest. That’s why companies are getting interested in them as they enter their peak spending years.

While it’s becoming more difficult to determine retirement security nowadays, it’s important millennials start investing early in life to secure their future.

However, if you are a millennial being held back by one or more of the reasons millennials give for not investing, don’t worry I’ve got you covered. If you can act on any of the 5 investing ideas covered in this post you should be fine, as they are low-risk and affordable.

At least for a start on investing for your future while you are young.

1. Dividend Reinvestment Fund (DRF)

DRF is by far one of the best ways to build wealth on autopilot. Because it allows you to automatically reinvest your dividend without doing anything. More like compounding revenue. DRF make use of your dividend to automatically reinvest in buying more stocks at no transaction cost and also no tax consequences for DRF.

2. Tax Lien Certificate Investment

A tax lien is a legal documentation that defines a debt a property owner has to pay the community past due property taxes. Because the community needs the money to operate. It sells those tax liens in the form of tax lien certificates to investors.

A tax lien can also be a good place to invest in — a tax lien allows you to invest in homeowners properties that couldn’t pay their community taxes and when they are ready to pay you to get a percentage out of it.

If they don’t pay after a specific period of time the property is been auctioned in a deed sale and you still get your interest from 16%, 18%  to 36% — it’s a win-win investment with low risk.

3. Invest in Your 401(k) Plans

Investing in your 401(k) is a great way to earn free money. You keep getting more free money as you contribute more of your 401(k).

According to ShareBuilder 401k “Most people get that 401(k)s are designed with big advantages over traditional IRAs when it comes to retirement savings.”

4. Exchange Traded Funds (ETF)

ETFs are more like mutual funds — while mutual funds set their price once a day ETFs track indices(such as S&P 500), a commodity or basket of assets and are traded all day.

Most importantly ETFs are cheaper to manage than mutual funds because you have the responsibility of monitoring them yourself. Moreso, because ETFs incur low management cost they reduce your tax burden.

5. MyRA

President Obama introduced MyRA as a new type of savings bond to help Americans make saving for retirement a part of them. Treasury Secretary Jacob J. Lew explain “heap, risk-free, and convenient way for people to invest who otherwise wouldn’t have the means to.”

So even if you leave your job you can always go with your retirement savings account and you get 1.5% APR. It’s easy to get started. Interestingly you can withdraw you money at any time according to MyRA official website. Ensure you visit the website for more information.

You have a bunch of ideas now on some low-cost investments that are suitable for millennials. It’s time to take action, pick one or two that interest you the most and start working on it. Have an idea? comment.



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