Where should you start if you want to invest but don’t know how? For many millennials and Gen Z investors, the biggest challenge isn’t a lack of opportunity; it’s not having the education about which steps to take first. Should you invest in stocks? Real estate? Crypto? Or just keep saving in cash?
At VestGen, we work not only with high-net-worth individuals and couples, but also with their children, as well as other young people beginning their professional and financial journeys. Whether you’re a student just starting to build savings or a jobseeker entering the workforce, understanding the basics of investing can set the foundation for long-term wealth, security, and even legacy.
Why Starting Earlier Matters
The greatest advantage millennial and Gen Z investors have is time. Compounding, the effect of earning returns on both your original investment and the returns it generates, works better the earlier you begin. Even modest contributions now can grow significantly over decades.
Starting early also helps you build financial habits that reduce stress later. By investing regularly and understanding your options, you’re better positioned to enjoy flexibility, pursue opportunities, and avoid scrambling to “catch up” as retirement approaches. Remember that while time is on your side, starting early is best to get the process going and eliminate future stressors.
Understanding the Basics
- Stocks and Bonds: Stocks represent ownership in a company, while bonds are essentially loans to governments or corporations. Stocks usually carry higher risk but higher growth potential; bonds tend to be more stable but offer lower returns.
- Mutual Funds and ETFs: These allow you to invest in a basket of companies grouped by sector instead of choosing individual stocks. They’re diversified by design, which helps reduce risk.
- Retirement Accounts: Tools like 401(k)s, IRAs, or Roth IRAs offer tax advantages that can accelerate long-term growth. Even if retirement feels far away, these accounts are critical to building future wealth.
- Alternative Investments: For families already working with VestGen, younger generations may also be introduced to private equity, real estate, or other alternative investments. These should always be approached with education and guidance, a process made much easier with the help of an experienced financial advisor.
Benefits for Your Wealth and Lifestyle
Investing is not about chasing fads or “getting rich quick.” Rather, it’s about creating options. For millennials and Gen Z, building an investment foundation can ultimately mean:
- Financial Independence: Having the flexibility to make career choices without being worried about paycheck-to-paycheck living.
- Lifestyle Security: Funding major goals like homeownership, travel, family planning, or entrepreneurship.
- Family and Legacy: For children of existing VestGen clients, learning these principles early ensures smoother wealth transfer and stewardship of family assets. It also helps younger family members earn and invest on their own without having to rely solely on family support to get by in life.
Building Confidence Through Guidance
The financial world can feel overwhelming, but you don’t have to navigate it alone. Working with a trusted advisor can help you cut through the noise, avoid common mistakes, and tailor a plan that fits your life today and evolves with you over time. At VestGen, we’re committed to helping new investors, whether you’re the child of a current client or just starting your journey, build the foundation for lasting financial confidence. If you’re ready to take the first step, connect with a VestGen advisor to explore how investing today can create more freedom for tomorrow.