2016-06-08
6 Investing Tips 20-Somethings Should Know
The first decade of adulthood is a flurry of foundation-building activities, including starting your career, building a family and establishing the assets you'll eventually rely on in retirement. Unfortunately, saving for a future 40+ years away usually isn't top of mind for most 20-somethings. Investing often falls low on the list of priorities, with many young adults assuming they've got plenty of time to establish and contribute to retirement accounts. While it's true time is on your side in your 20s, getting an early start on your financial future can put you well ahead of the game. Although it may seem overwhelming, there are ways to wade into the investing pool without diving directly into the deep end. For example:
Maximize Your Contributions
Experts say 20 percent of your income should go toward savings and investments. While your income may not be at its peak in your 20s, you likely have fewer demands on your resources (like paying for a mortgage and your kid's college tuition) and can better leverage whatever salary you're earning. One of the easiest ways to get started is by taking advantage of your employer's 401(k) match. Many companies help you save for retirement by offering matching contributions to your 401(k) investing account, usually $.50 for each $1.00 you save, up to a specific percentage. At this stage, you should at least pony up enough of your own dough to earn the full employer match - otherwise, you're leaving free money on the table.
Automate the Investing Process
With all the burgeoning responsibilities of your post-graduation years, managing your investments is one that can easily slip your mind. By putting your investment activities on autopilot, you can free your time for other tasks without neglecting your financial future. A robo-advisor can provide many of the benefits of an in-person investment advisor at a much lower cost. And since you're not involved in the day-to-day management of your account, you can avoid getting spooked and making unwarranted and emotional changes to your account based on natural market fluctuations. (However, you'll still need to examine your accounts at least annually to make sure you're on track to reach your goals.) Make it even easier on yourself by opting for automatic increases to your investing accounts. As your salary rises, you can automatically save more without noticing a big impact to your paycheck - it's a win-win!
Achieve Built-in Diversification
You don't have to be an investing guru to have a well-balanced portfolio. Diversified investment vehicles such as index and target-date funds are designed as micro-representations of the entire financial market, piecing together stocks and bonds from different sectors and risk levels without requiring you to select each fund separately. This can help de-clutter your portfolio and provide for even more automation during these early investing years, as a target-date fund will automatically adjust its risk level as you get closer to retirement. Keep an eye on costs such as trading and maintenance fees; the expense ratio should be no higher than roughly 0.5 percent.
Remember, Every Little Bit Helps
Putting a few dollars here and there into an investing account may not seem significant, but those little cash injections can go a long way over time. If you put just $4 into a jar every day - the cost of your morning latte - you'll have more than $100 to invest every month without really trying. And with many online brokerages offering low account minimums (or no minimums at all), you can pretty much start investing with the coins under your couch cushions.
Use Time to Your Advantage
Time is not a renewable resource, and your future self will thank you for every penny you put toward investing while you're in your 20s. By starting early, you can build yourself a hefty nest egg to help pay for the retirement lifestyle you want. It can be difficult to truly appreciate the value of those funds 40 or 50 years from now, but some simple math may make it easier: If a 25-year-old invests $100 per month and achieves a modest 6-percent rate of return, they will have accumulated $185,700 by age 65. Waiting until 35 to start investing cuts that amount to $94,800, a difference of $90,900. That's no chump change!
Be Aggressive
All too often, 20-somethings keep their money in safe, easily liquidable investments, such as certificates of deposit and money market accounts. While you might be wary of the financial markets following the ups-and-downs of the last several years, these conservative investment choices could be harmful to your future. Why? Because the lower rate of return usually doesn't keep up with inflation over the long run. That means you'll eventually end up with an investment that's not much more valuable than it would be had you stashed your cash in a shoebox at home. Opening yourself to more risk, such as equities, will drive the growth you need to build long-term wealth. Plus, your age means you'll have the opportunity to recoup any losses you may experience.
Now's the Time
Your 20s are a time of learning and growth that set the stage for the rest of your life. These years are a once-in-a-lifetime chance to leverage time, opportunity and the power of compounding interest to create a comfortable financial future. What are you waiting for?
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MoneyLion
MoneyLion Wins “Best Financial Literacy Tool” and “Best API” at Benzinga’s 2022 Global Fintech Awards
MoneyLion’s consumer and enterprise businesses were recognized as winners of Benzinga’s 2022 Global Fintech Awards at this year’s Fintech Deal Day
New York, December 14, 2022-- MoneyLion Inc. (“MoneyLion”) (NYSE: ML), the go-to destination for personalized financial content, products and advice, is proud to announce that it has been named “Best Financial Literacy Tool” at Benzinga’s 2022 Global Fintech Awards. MoneyLion’s enterprise business, Even Financial, was also named as the winner for “Best API.”
MoneyLion and Even Financial were honored alongside other top Fintechs, banks, research companies and more. MoneyLion’s consumer business continues to push financial literacy through innovative and personalized content. With the MoneyLion app, users can view personalized financial content in short-form video format and receive personalized financial product recommendations such as loans, insurance and investing. As MoneyLion’s enterprise offering, Even Financial digitally connects and matches consumers with real-time personalized product recommendations from banks, insurance carriers, and Fintech companies on mobile apps, websites and other digital touchpoints through its financial product search engine and Embedded Finance Marketplace technology. This technology powers both the MoneyLion Marketplace, in the MoneyLion app, as well as more than 1,000 enterprise partners.
“We’re thrilled MoneyLion’s consumer and enterprise businesses were recognized by Benzinga,” said Dee Choubey, Co-Founder and CEO of MoneyLion. “Both awards showcase MoneyLion’s every time you money approach to helping our customers. The financial literacy gap is a huge problem for millions of Americans and we remain committed to reducing its effects through engaging, informative content and key partnerships designed to bring an elevated educational experience to all.”
These awards follow the October announcement of MoneyLion University, where MoneyLion launched its latest initiative aimed at closing the gap in money and financial education across the United States.
“We could not be more pleased with Benzinga’s recognition of our company’s API technology,” stated Phill Rosen, CEO and Founder of Even Financial. “Our technology natively integrates real-time credit decisions and product recommendations from the industry’s largest network of connected financial services providers, offering access and choice to consumers searching for financial products. Our elegant Embedded Finance Marketplace, API and search engine enable any company to add trusted, personalized financial products and services to their business, reaching people when and where they need it.”
Even Financial has been named a listmaker for the Benzinga Global Fintech Awards for the last two years and was a previous award winner. In 2021, Even was selected as a listmaker for Best API and, in 2020, selected as a listmaker for both Best API and Best API Platform. In 2019, Even was awarded the Benzinga Rocky Award.
The annual Benzinga Global Fintech Awards take pride in recognizing and honoring the companies and individuals who are propelling the Fintech and financial services industry forward with the most impressive technology advancements and innovations. A panel of industry experts from a wide range of companies reviewed and judged the nominations. Winners were announced at Benzinga’s Fintech Deal Day on December 8, 2022, where MoneyLion’s Chief Customer Officer Cynthia Kleinbaum spoke on the panel, Expert Growth Hacks For Reaching Underserved Markets.
About MoneyLion MoneyLion is the go-to destination for personalized financial content, products and advice. MoneyLion’s mission is to rewire the financial system to positively change the path of every hard-working American. MoneyLion uses its proprietary data advantage and technology to empower its customers. MoneyLion engages and educates its customers with daily, hyper-personalized money-related and money-adjacent content that is delivered through each customer’s own content feed. MoneyLion provides its customers a full suite of financial and non-financial solutions, bundling its proprietary, low-cost financial products with products that are offered through its marketplace technology and network affiliate partners. MoneyLion also leverages its distinct data, technology, and network advantages to deliver leading embedded finance and marketplace solutions for enterprise customers. Since its founding in 2013, MoneyLion has empowered millions of Americans to take control of their finances and live their best financial life, every day.
For more information about the company, visit https://www.moneylion.com/ and https://www.evenfinancial.com. For investor information and updates, visit investors.moneylion.com and follow @MoneyLionIR on Twitter.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221214006032/en/
MoneyLion Communications [email protected]
Caliber Corporate Advisers [email protected]
Even Financial [email protected]
Built In
Even Named A Built In “2023 Best Places to Work”
New York, Jan. 11, 2023 -- Even Financial ("Even"), an independent subsidiary of MoneyLion Inc. (NYSE: ML), and a leading embedded finance marketplace platform, is proud to announce that it was honored in Built In’s “2023 Best Places To Work” Awards. Specifically, Even earned a place on the Hybrid Best Places to Work in New York.
The Best Places to Work Awards, now in its fifth year, honors companies across numerous categories, sizes, remote-first employers as well as in person and hybrid working companies across the U.S.
Built In determines the winners of Best Places to Work based on an algorithm, using company data about compensation and benefits, and also weighs criteria like remote and flexible work opportunities, as well as other people-first cultural offerings.
This announcement follows Even’s recent win at the Benzinga Global Fintech Awards for “Best API.”
About Even Financial
Even is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. (“MoneyLion”) (NYSE: ML). MoneyLion is a leading digital financial services and lifestyle content platform serving both consumer and enterprise customers. As part of MoneyLion’s enterprise offering, Even digitally connects and matches consumers with real-time, personalized financial product recommendations from banks, insurance carriers, and fintech companies on mobile apps, websites, and other digital touchpoints through its marketplace technology. Even's infrastructure leverages machine learning and advanced data science to solve a significant pain point in financial services customer acquisition, seamlessly bridging financial services providers (such as SoFi) and channel partners (such as TransUnion) via its industry-leading API and embedded finance marketplaces. Even enables any company to add financial products to its business, with full compliance and security at scale. Even was named one of "America's Best Startup Employers'' by Forbes for 2022 and was named to the 2021 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world. Learn more at www.evenfinancial.com and investors.moneylion.com.