In a 2018 survey, the Bank of America found that 1 in 6 millennials have $100,000 or more in savings. As impressive as this is, the survey also found that others had nothing saved at all.
The number of millennials that do not have any money set aside is increasing. An article from CNBC reveals that this number has risen by almost 10% in the span of a year. The CNBC article goes on to suggest that if you wish to retire by age 67, you should have 10 times your final salary in savings. This timeline may seem unattainable to many millennials but can indeed be achieved with the advice of a Financial Advisor.
A recent poll conducted by CIBC in April 2018 reveals that many Canadians between the ages of 18-37 are not on track to owning a home. Although almost 50% of millennials who intend to buy a home plan to do so within 5 years, 76% of them had not started to save the required down payment. The poll goes on to reveal that despite the costs of owning a home, most homeowners save more than those who rent. Interestingly, it was found that only 18% of millennials that rent or live at home, and intended to buy a home, had met with a financial expert.
A Financial Advisor will sit down with you to discuss your needs and come up with a plan that will ensure you reach your specific goals – whether this is to buy a house in the near future or to optimize your savings to allow you to retire at an earlier age. Further, a Financial Advisor will provide you with guidance on how you should invest to reach your goals.
Many of us look for investments with the least amount of risk. GICs – Guaranteed Investment Certificates – are one such investment. GICs guarantee 100% of the money you put into it. However, due to the low interest rates, the returns do not enable you to grow your wealth effectively. Currently, the rate of inflation is reported at 3%, with GIC rates for a one-year term is between 2%-2.50%.
Financial Advisors can provide you with guidance on how to best to grow your wealth, enabling you to achieve your goals within your desired timeframe.
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