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A quick Google search reveals that millennials are often characterized as entitled whiners who are quick to complain about their financial struggles — but it’s not a fair assessment.
There’s a reason why millennials — typically defined as between the age of 28 and 43 — are on shakier financial ground compared to previous generations.
A recent study from Allianz shows that, while boomers have been able to benefit from periods of strong economic growth, millennials have been hit with one financial crisis after another since reaching an age when it was finally possible to start saving and growing their wealth. A study in the American Journal of Sociology found that millennials have 30% less wealth at age 35 than boomers did.
Here’s how society’s “biggest losers” can get ahead even after multiple setbacks — and what Americans of any age can learn from their struggles.
Why millennials got a raw deal
Millennials have had a number of economic factors working against them over the years.
During the Great Recession (2007-2009), many millennials were in their 20s, facing high unemployment, stalled careers, and mounting student loan debt. Unlike boomers, who attended college when costs were low, millennials faced steep tuition, with average public college costs rising from $514 in 1973-1974 to $4,587 in 2003-2004.
The job market’s slow recovery and low interest rates further hindered millennials’ savings efforts, while higher rates in the 1970s helped boomers build wealth. The pandemic didn’t help matters.
However, millennials can navigate these obstacles and maximize the longevity of their future nest egg or any other long-term financial goals by seeking a trusted financial advisor — and finding one doesn’t need to be a long, stressful process.
Advisor.com simplifies the search process by connecting individuals with an exclusive network of fiduciary advisors, each dedicated to transparency and held to high ethical standards.
All you have to do is answer a few simple questions regarding your finances and long-term goals, and Advisor.com will connect you with a vetted expert near you who is best suited for your needs. You can then set up a free, no-obligation consultation to see if they’re the right fit for you.
How millennials can get ahead
Personal finance expert Suze Orman stresses that the key to building wealth lies in compound interest.
“Their priority is their youth, their priority is time,” Orman once told Moneywise, highlighting that compounding over time is crucial to financial freedom.
For example, saving just $100 a month starting at age 35 with a 12% annual return could grow to $300,000 by retirement age, Orman explained. While still below the $1.46 million Northwestern Mutual recommends for a comfortable retirement, it’s a step toward catching up after economic setbacks.
Millennials can also make up lost ground with real estate, which offers robust growth potential whether through homeownership or through other investments like real estate crowdfunding platforms and real estate investment trusts (REITs). REITs allow for real estate investment without needing to buy physical property, making them an accessible option for beginners with even modest funds.
Investing in real estate without buying a property
In fact, there are emerging platforms that simplify real estate investing further, offering flexible options to invest in large-scale real estate projects without the traditional barriers to entry. These services open up new opportunities to grow wealth and diversify portfolios.
If you’re looking to start investing in income-producing residential real estate, Arrived offers an accessible way to do that without the barriers of buying and managing a property yourself.
Backed by influential investors including Jeff Bezos, Arrived is a real estate investment platform that allows individuals to directly invest in shares of rental homes and vacation rentals .
By investing with Arrived, you’ll earn returns in two ways: rental income generated by the properties and capital gains when properties appreciate in value.
For as little as $100, you can invest in the housing market and earn passive income without dealing with mortgages or landlord responsibilities.
And you aren’t limited to residential opportunities when it comes to income-producing real estate.
If you’re an accredited investor looking for larger returns through institutional-quality commercial real estate, First National Realty Partners (FNRP) could be a better fit with a $50,000 minimum investment requirement.
Specializing in grocery-anchored retail, FNRP offers a turnkey solution for investors, allowing them to passively earn distribution income while benefiting from the firm’s expertise and deal leadership.
FNRP has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods, and provides insights into the best properties both on and off-market. And since the investments are necessity-based, they tend to perform well during times of economic volatility and act as a hedge against inflation.
You can engage with experts, explore available deals and easily make an allocation, all in one personalized, secure portal.
Building your nest egg with gold and high-interest savings accounts
With another 20-25 years in the workforce, even older millennials have time to grow their retirement savings through increased IRA or 401(k) contributions and smart investing. Even so, with rising living costs and economic uncertainty, it’s important to consider different ways to secure your financial future.
Many investors are seeking more diversified strategies, such as gold IRAs, to provide stability and protect their savings against inflation and market fluctuations.
Additionally, high-interest savings accounts have become a more attractive option for those looking to boost their savings with minimal risk.
You can open a gold IRA account with the help of Priority Gold. This way, you can benefit from the hedging properties of gold as well as reap the tax benefits — creating a secure financial cushion for retirement.
You can get up to $5,000 in free silver if you make a qualifying purchase with Priority Gold. If you want to learn more, sign up now to get a free precious metals IRA guide.
On the other hand, if you’re looking for a more accessible and hands-off approach to saving and investing, platforms like Acorns offer a great solution.
Acorns makes it easy to grow your savings by automatically rounding up your everyday purchases to the nearest dollar and investing the change into a diversified portfolio. It’s a simple way to start investing without even thinking about it.
And the investing options with Acorns don’t end there. You can also open an IRA with Acorns Later and reap the tax benefits that are associated with registered retirement accounts. Acorns Silver plan offers a 1% IRA match on new contributions, while the Gold plan, you can get a 3% IRA match.
And with a $20 bonus for signing up, it’s an easy entry point to begin investing toward your long-term goals while still managing the demands of daily expenses.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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