Should Millennials Only Invest With Robinhood?

Robinhood is the best thing to happen to investing since the inception of discount brokers.  The ability to buy shares for free is freakin’ awesome!

However…there is a very important point I want all you millennials out there to consider.

Unless you are Peter Pan, you won’t be 23 or 33 forever.  One day you’ll be 65 or older, and you’ll want to cash out your nest egg.  If you have all of your investment dollars in Robinhood, you are going to get killed with taxes.

I recommend opening an IRA with another brokerage for a portion of your retirement savings.  With a Roth IRA, you pay taxes up front and keep all the profits when you need the money the most, in older age.

The commission you pay upfront will be more than covered by the profits you incur over time!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

 

It’s Never Too Early!

History teaches us that the earlier you start something in life, the more proficient you will become at it.

Check out this chart that compares starting regular contributions to a Roth IRA at age 15 versus age 25.

You could potentially double your return by age 65, with no extra work!

If you missed last year’s post by Chris Pascale – in which he talks about how he put this into practice and opened up a Roth for his teenage daughter – check that out as well.

Now is the time that young people across the country are working at their summer employment.  If you have teenagers, encourage them to set aside a portion of their earnings from their supermarket, camp counselor, landscaping, etc. job for their future.  Show them these articles.

A couple of qualities that are already coming into prominence about Generation Z are their entrepreneurial spirit and a preoccupation with becoming financially free.  Although you may never get them to listen when you ask them to do their household chores, chances are that when they see how much they stand to gain by starting to invest now rather than at 25, their ears will perk up.

Share your experience in the comments!

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)