Investing for many millennials today is imitating and overwhelming.  They understand the benefits of investing for their future, but many are bombarded with so much information that they are unsure of where to begin.  By being unsure, many millennials resort to not doing anything at all.  According to a report from Acorns Money Matters, 41-percent of nearly 2,000 millennials– individuals between the ages of 18-35 years of old — surveyed admitted to spending more on coffee than contributing toward their retirement plan.

During those ages is the prime time to invest.  One reason is that time is on their side, they have the ability to grow an investment by reinvesting the earnings.  Also, they are able to take more risk versus someone closer to retirement because they have more time to reinvest their earnings and even recover if an investment fails.  Lastly, they are very smart and technology savvy so they are able to dig deep and do thorough research on each investment.

Below are three asset classes that are millennial could invest in and begin building wealth for themselves as well as families.

Stock Market

Investing in the stock market is considered one of the most profitable forms of long-term investment if you are patient, offering a performance superior to any other type of asset.

Before investing in stocks, it must be taken into account that the Stock Exchange is prone to periods of high volatility where the prices of certain stocks may fall violently. If this is the case, it is important to be patient and not to sell the shares, as the market ends up recovering from these periods and summarizing its upward trend.

Another point to consider is the amount to invest. Because of the volatile nature of the stock market (at least in comparison to other investments), it is advisable not to invest in it all the money available and not to do it in a single type of stock. The most sensible strategy is to diversify, to have patience and to be attentive to the changes of the market.


This innovative investment model is one of the most promising but can also be risky. Through crowdfunding online platforms you can invest and acquire a percentage of stocks of emerging companies or start-ups.

This alternative has the added value that allows you to support emerging entrepreneurs with projects that deserve both your money and your vote of confidence. If all goes well, your returns will be very high and you will have helped to grow a business. But there is also the possibility that your investment does not grow as much as you expected, that it does so at a very slow pace or that, like many new businesses, it goes bankrupt. Needless to say, if this happens your investment will be lost.

Mutual Funds

Mutual funds are instruments aimed at those who are just beginning to invest and are characterized by grouping the investment of many small investors to generate better returns than would generate each of them separately.

By their nature, they are managed by investment experts and depending on the type of fund, the fund can invest either in shares of the Stock Exchange or in debt securities of the federal government. Funds that invest in government debt are considered the safest since they are protected by the financial soundness of the issuing country. On the other hand, the equity funds invest in shares of companies of the New York Stock Exchange, the reason why they are exposed to the volatility of the market.