18 March, 2023
“There are so many things in life more important than money, but they cost so much!” (Groucho Marx). If you were born between 1981 and 1996, you belong to that part of the population known as millennials.
In reality, millennials cannot be defined simply as a generation, but as a way of thinking.
They love flexibility, working from home, and meritocracy instead of seniority as professional recognition. Many become entrepreneurs with fresh ideas.
Given that they were born and raised in an era of economic uncertainty, in many cases with lower incomes than their parents, they may have problems in building a stable wealth; and, above all, they must carefully manage their liquidity in order to achieve their goals.
A crucial priority for millennials is to prepare financially for retirement.
For this reason, most of them take a much more conservative investment behavior, and give preference to the equity’s preservation compared to the search for higher yields.
Millennials are the generation characterized by the transition towards digitalization, especially in the financial sector (Fintech). In fact, 94% are online banking users and utilize banking services through “apps” (source Accenture).
Many millennials invest using roboadvisors platforms, which are technology platforms which provide automated investment services.
The main difference between roboadvisors and traditional financial service providers lies in the fact that the roboadvisor makes its investment decisions or recommendations by using algorithms.
If you recognize yourself in this category, and you have the need to build wealth for your short or long-term future, we are going to explain 6 ways to turn your savings into an estate.
A very important aspect is that this improvement in the practical aspect of financial education is useful not only when there are situations of economic crisis, but also for moments of favorable economic conjuncture.
Ultimately, a deeper financial education improves your decision-making skills,
In addition, take into account the opportunity not to borrow too much to pay non-essential expenses.
Always remember the 50/30/20 rule: 50% of your total income must be intended for essential expenses, 30% for non-essential expenses, and at least 20% for savings and investment.
Building wealth that is partly good for retirement is a serious priority for millennials.
For this reason, most of the savings specifically earmarked for this purpose should be concentrated in lower-risk assets, such as bank deposits, fixed-income government and corporate bonds with a high credit rating by rating agencies, money market funds, or pension plans with a conservative profile. Beyond performance, it is crucial for millennials allocating savings for retirement in a safe manner.
If you want to boost your pension for the future, you must also take a little risk, especially if you don’t want a fixed-wage job. Part of your savings could be used to finance the establishment, growth, and expansion of innovative small businesses, better with a partnership or a company.
Investing in stocks on the financial markets is an investment decision that can give you excellent returns, but it is riskier than any other financial instrument.
One of the main millennials’ characteristics is their inclination to be more aware about social and environmental problems.
ESG investment (Environmental, Social, and Governance, in English, ASG in Spanish), also known as “socially responsible investment (SRI)”, is an investment philosophy that integrates environmental, social and good governance criteria in the process of shares’ study, analysis and selection; therefore, it prioritizes financial returns along with the company’s impact on the environment, on its stakeholders, and on the planet.
As a millennial, investing part of your savings in stocks of ESG companies could be a very appropriate solution to combine these aspects of responsible and sustainable finance with the typical returns of the equity market, especially in a sector that is expected to have high growth and lower volatility in the near future. According to a Bank of America study, many investors are now transferring their resources to ESG stocks and funds at a rate of 6 to 8% per year, more than twice the usual strategies for other financial market sectors: this will surely lead to an increase in ESG shares trading and prices.
Make your portfolio reflect your best vision for our future.
With a PAC you can invest by making automatic periodic contributions with the aim of increasing the value of the accumulated capital in the medium-long term. With this type of investment, you can decide your most appropriate payment frequency (monthly, quarterly, annually) and amount.
Of course, you can totally or partly withdraw your capital when you need it.
You can invest in different real estate properties: lands, apartments, houses, each with its own features.
Generally, a real estate investor is looking for a capital gain or a recurring rental income, or both of them.
But, the first thing you have to consider is how much is your initial budget.
At this point, you can decide to earn an income from rent, increasing your wealth and, possibly, starting to create your portfolio.
Or sell the property to collect a possible appreciation. And the investment cycle starts again.
It will be easier for you to opt for a capital gain and / or a constant cash flow from vacation rentals if you decide to invest in a place with high tourist and economic growth such as the Riviera Maya.
Maya Ocean Real Estate has several solutions to support you in your decisions.
Also, with our financial model we can show you what the return on your investment could be, as well as the best financing option consistent with your income and your budget for down payment.
We are a company dedicated to the Sale of Real Estate and we also offer the option to Manage, Promote and Rent. Our real estate inventory and area of operations extends to the Riviera Maya mainly in the cities of Playa del Carmen and Tulum...View More