By Kate Ashford Courtesy of Forbes Full Article here Cliff Note Version: 2 out of 5 millenials, 39% prefer cash as their long-term investment.”Millenials actually get the importance of saving; They’re just not willing to take the risks with it, particularly with regard to long-term savings.” Cash is not a good pick for saving/investing money because it loses value over time due to inflation. The S&P 500 has gained 17% over the past 12 months versus 0% for cash. Millenials came of age during turbulent financial times With the financial crisis and tech bubble, young adults had a front row seat to see both events. “Even though it didn’t effect them directly, they saw the impact it had on their parents and other family members and friends.” Millenials have a poor appetite for risk, which is ironic because they are the age group most able to take on risk “Even with something as severe as the financial crisis, if you hung in there and continued contributing throughout, you not only recovered your losses, but you came out well ahead.” Millenials are the generation that most needs to get agressive with savings as they have the biggest retirement savings burden of all time. Young adults “life expectencies are longer, their healthcare cost are going to be higher, they don’t have the pensions thier parents did, and the future of Social Security is more uncertain than its been for any of their predecessors.” Young Adults are going to need a bigger nest egg, and they are not going to get there with cash in a savings account. “A key part of this is getting people to think long-term, getting them to see the power of compounding over those periods of time.”  

By Mandi Woodruff Courtesy of Yahoo Finance Full Article here Cliff Notes (C’mon its 13 bullet points you can read this): 20 somethings don’t save money for two reasons: “There are bills to pay, debt to be tackled, apartments to rent, and social lives to be had.” They think that their money is better served in their pockets now. Due to inflation, a 20 something will need $7,000,000 at retirement!A 25 year old making $50,000 would need to save 14.65% of their salary througout their career. In 1970, someone could have retired with just $166,000. Today, someone needs around $1,000,000. TIME IS ON YOUR SIDE! Saving 6% of your pay at 25 is much more valuable than saving 8% at 55. Case Study:IF you decide to invest while you are younger you stand to have a significant amount more at retirement and “people who do that earlier set themselves up much better for success.” Jennifer, 22, making $3,000 a month, saves 5% of her salary in a 401(k) with a 5% employer match ($300 a month). She earns 6% at year on her investment and ends up with $753,849 at age 65. (assuming she never increases her contribution or gets a raise) Jennifer decides not to invest young, instead she waits till she moves up in the company and is making $6,000 a month ($600 a month) but is now 35. Same savings of 5% with 5% match and same investment, at 65 she has $317,843. She lost out on $436,000 by waiting!!! *Note: We do not own Cliff Notes or have any relation with them with are just using them as an example of a book synopsis company.

Even if economists have predicted 9 of the last 2 recessions, a recent quote by a professor of finance, Sean Snarth of the University of Central Florida, may help you deal with recent volatility that has finally returned to the markets.  To quote Sean, “The tax cut stimulus and faster wage and salary growth are the garlic to the vampire of recession.”  In other words, the government has primed the pump for growth that we haven’t seen in almost ten years with lower taxes, higher wages, and maybe most importantly, less regulation.  As the economy begins to deal with higher interest rates, the possibility of growing our way out of a possible resultant recession will be the key and hopefully not a horror show.