Perhaps instead of the 5Cs, we’ll hear more goals along the lines of ‘hitting your first million by age 30’.
Gone were the days where only the rich and affluent were associated with stocks and had the luxury of a passive income. In fact, it is not uncommon to hear 23 year olds going on about missed opportunities to cash out on stocks.They are no longer your few over-ambitious friends who make you feel as though your whole existence is a lost cause. Millennials are increasingly recognizing that financial and health concerns may challenge their aspirations and are now increasingly motivated to achieve financial stability at a younger age.
A Manulife study found that Singapore millennials were more optimistic about their retirement prospects than older generations – 8 out of 10 believe they will be able to maintain or improve on their current lifestyle when they retire. Seventy-four per cent plan to continue working in a full-time or part-time job after retirement, and expect their work income to contribute close to 20 per cent of their retirement income.
Property investment is found to be the millennial’s top choice, but with Asia’s rental yields being one of the lowest, it is not the most effective for your portfolio. As any business student would know, diversification is the golden rule. The financial world is also getting friendly and accessible for millennials with SGX decreasing the number of lots and the introduction of real estate investment trusts (REIT) ETFs. SGX recently launched their second REIT ETF together with equities and bonds, it essentially is the lazy man’s ultimate portfolio.
Ultimately playing the financial field does require sufficient knowledge and obviously, capital. As millennials, the first place we consult is definitely the internet. The amount of available information online can seem overwhelming and starting on a clean slate with zero clue on what a short-sell is, can definitely be a daunting start.
Whether you are just starting out as a newbie or a seasoned investor, here are some millennials killing it on the financial front and where you can seek for great financial advice from.
1. Fitri Khamis on Dayre (@fitree)
With a day job in digital marketing, Fitri’s interest in the financial world is purely self-driven. He grew up with the realisation that one’s achievements are a result of one’s own efforts. On the path of pursuing his degree, he took on the role as the family’s sole breadwinner after his mother’s death during his national service days.
Dishing out advice and his journey to achieve financial stability under the #financefridays, Fitri dabbles in a diversified pool of products from equities to crowdsourcing. We recommend following him if you’re slowly dipping your foot into the water, his tips and anecdotes are light-hearted enough so you don’t get cold feet!
2. SG Budget Babe on Dayre
Dawn shares her journey to financial freedom with advice on savings, budgeting, paying off debts and detailed stock analysis – the whole gamut of it. She also holds workshops on personal finance and more specialized topics such as investing on the stock exchange.
Tracking all her learnings and mistakes on her Dayre, she also provides honest anecdotes on her experiences with certain products and failed investments. Notorious for saving up to $20k a year, she dishes out advice unapologetically which some may take offence to. It’s best for those who have already ventured out on their own and are in need of bite-sized tips from time to time.
3. Value-edge
A financial website focused on value investing, it was started by Tee Leng and Sui Chuan, and their passion for improving financial literacy and providing sound investment principles. They started their investment journey based on the teachings of Benjamin Graham and David Dodd, which is reflected in their commentaries and stock analysis. Their website is catered to those who wants news, stat. It’s informative without fluff, yet the content manages to be engaging.
Value-edge offers stock analysis, latest financial updates and even runs a Value-Edge Academy for modules such as Value investing and Financial statement analysis. They’re the guys you go to for a round-up of the weekly financial happenings if you’re a serious investor.
At the end of the day, everyone has their own ideals of financial freedom. Some may just choose to spend lavishly on their latest wants, but millennials are known for being more ambitious and optimistic – more than what we give ourselves credit for. Perhaps instead of the 5Cs, we’ll hear more goals along the lines of ‘hitting your first million by age 30’.
