A recent study reveals that while millennials have a positive outlook of their financial future, and nearly half think investing is a good idea, they’re overwhelmingly choosing to hold their savings in cash because they feel investing in the stock market is too risky.

Of course, in the short term, there can be fluctuations in any given stock price. The key is to have a long-term perspective. And millennials in particular have a great advantage because they have more years than most to invest — years to ride out market fluctuations; years to continue to add to their investment; and years to benefit from the power of compounding.

So, to our young investors, I say: take a look at your savings, and after setting aside a portion as your emergency fund, consider making cash work harder for you in the market.

Resources:
http://www.blackrockinvestorpulse.com/millennials
http://www.investopedia.com/articles/investing/103013/stocks-remain-best-longterm-bet.asp

A program of regular investing does not assure a profit or protect against loss in a declining market.

The information on this page is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.