Investment Advisor for Young Adults

Start Early On Responsible Financing With Our Investment Advisor for Young Adults

Sadly, “Finance for Young Adults,” which would help students learn the basics of budgeting, building credit, and avoiding debt as they enter adulthood isn’t a part of the high school curriculum.

While certain strides have been achieved, such as when the United Kingdom made personal finance education mandatory in 2014, there are still significant gaps that cannot be bridged at this time.

These gaps, however, can be bridged by investment advisors from Pearl Lemon Invest.

Hire us today. Give us a call.

Why Should You Invest When You're Young

We get it.

It’s more fun to spend your money buying that cute top or that game.

Or maybe you’d rather take your girlfriend out on a date in a rented yacht with a romantic dinner, a bouquet bigger than her face, and maybe a piece of jewellery that’ll get her squealing.

It’s fun being financially irresponsible. We know.

Creating a long-term investment plan may not be at the top of your to-do list while you’re young. However, your chances of accomplishing your goals increase in proportion to how early in the game you begin investing.

To maximise the impact of compound interest, early investment is essential.

Investment returns are essentially earned money that is added to the initial sum invested—a higher initial investment yields a higher rate of return, and so on. Your income will increase at a quicker and faster clip in this way.

Picture this:

You’re 20 years old, and you’ve been investing $100 every month, earning 8% annually. If you started investing at age 20 and kept it up until you were 60, the compound interest would have transformed your initial $48,000 into more than $310,000.

Starting the same investment plan at age 30 would only net you around $136,000 by retirement age 60, or nearly half of what you would have had if you had begun at age 20.

Preparing for inflation early on via investment is a smart strategy for everyone as the cost of living continues to rise and the purchasing power of a given amount of currency declines.

When Should You Consider Hiring an Advisor

Few people opt to retain the services of a financial counsellor first thing in the morning. Instead, it is typically a significant life event that prompts people to seek out expert help and assistance.

Here are some situations where you can consider hiring an advisor for your finances and investments.

Your Income is Rising, or Your Assets are Growing

As a young professional whose career is flourishing, you have started to lay the groundwork for a secure financial future.

To what point, though, has it grown to the point where it warrants an advisor?

If your family income or financial assets are in the six figures (more than $100,000), it may be time to seek professional assistance.

There is a correlation between the size of the “numbers” and the investor’s perceived level of worry and anxiety about making the right choice, according to research in the field.

You Have Received a Large Inheritance or a Windfall

You may seek guidance in figuring out how to best incorporate a recent windfall into your financial plan, such as an inheritance or gain from the sale of a business or the exercise of stock options.

In what ways would this affect my taxes? Does this mean you can finally put your kid(s) through private school? Is it possible to purchase a lakeside retreat? To retire earlier or to pay off your mortgage?

If you have a skilled financial advisor, they can assist you in seeing what options you have and how they all fit together.

Your adviser can use cutting-edge planning tools to demonstrate how several “what if” scenarios would affect your overall strategy.

You want guidance on your tax situation

You undoubtedly discovered this as soon as you started your profession and understood how much of an impact taxes had on your finances.

Your financial adviser should be able to collaborate with your tax preparer to help you minimise your tax liability while still meeting all of your legal obligations.

Stock options, restricted stock units, an employee stock purchase plan and deferred compensation programmes are all possible ways to further your career in a company.

Tips for Young Investors

The question of how to begin investing is a valid one for many young people who are aware of the potential benefits of doing so. In other words, we have advice for you.

Set Investment Goals

Investing is a process that begins with the establishment of personal financial objectives. The monthly savings amount needed to complete the project may be determined by working backwards from the overall aim.

Setting a clear investment objective and time frame will help you gauge your comfort with risk. So that’s valuable information to have when deciding where to put your money.

Begin With Tax-Deferred Retirement Accounts

With a tax-advantaged retirement plan, such as an IRA or 401(k), investors may reap considerable rewards.

These accounts provide tax benefits in two ways: contributions to standard plans are deductible, and gains in retirement years can be withdrawn tax-free with an IRA plan.

Your company could provide you with a 401(k) retirement savings plan. You may start a regular or Roth IRA on your own.

Obtain Matching Funds

There are a lot of 401(k) and other employer-sponsored retirement plans out there, and many of them provide matching funds. For each dollar you donate, your company will match your contribution up to a set percentage of your pay.

Diversify Your Portfolio

Diversification is an essential concept for long-term investment.

You may reduce your overall exposure to risk by investing in a variety of different assets. That way, if one of your assets experiences losses, it does not have as substantial of an influence on your portfolio as it would if it were your sole investment.

Invest in a variety of asset classes and within each asset class. A diversification strategy involves spreading your money across several asset types, such as bonds, stocks, and real estate.

To spread your risk, it’s a good idea to invest in a variety of securities within the same asset class rather than putting all of your money into one stock.

Using mutual funds or exchange-traded funds (ETFs) is yet another method of diversification (Exchange-traded funds). These are a pool of investments that give you exposure to many assets with just one single investment.

Keep an Eye Out for Hidden Charges

Investing in mutual funds and ETFs may incur fees, including expense ratios. When investing, fees are often a part of the process, but try to choose assets with low fees to minimize their impact.

Keep Your Emotions in Check

In times of market volatility, it’s easy to get scared when your portfolio dives suddenly. Remove the temptation to make changes to your portfolio in response to market fluctuations.

If you are concerned about short-term movements, you can limit how often you check your portfolio so you don’t get tempted to adjust and adjust.

Why Pearl Lemon Invest?

Pearl Lemon Invest is an investment-led software tech company that specialises in forex and equities algorithms.

We have 58+ years of combined trading experience and have worked with a lot of industries, including commodity, FX trading, and treasury bonds, among others.

Our developers with at least five years of algorithmic developing experience also have spent 2,000+ hours programming our ever-dependable algorithm that’ll guarantee you the most optimal trading for your money.

Aside from our algorithm, of course, we also have a team of investment advisors that are cherry-picked to meet your needs.

We got it all for you. Talk to us.

FAQS

What kind of investment advice is best for young adults?

As a young adult, it is important to focus on long-term investments, such as index funds or low-cost exchange-traded funds (ETFs), which have the potential to grow over time. Another smart move is diversifying your investments by buying various stocks, bonds, and other assets.

How much should I be saving for retirement as a young adult?

It is generally recommended to save at least 15% of your income for retirement. However, the earlier you start saving, the less you will have to save overall. If you start saving in your 20s, you can save less than 15% and still have enough for retirement.

What common mistakes can an investment advisor for young adults help you resolve?

A skilled advisor can help you avoid common investment mistakes young adults make, including diversifying their portfolios, not having a long-term investment strategy, and trying to time the market.