An excerpt from Wealthtender.com's article titled Still Renting? You’re Not Behind. You’re Using Gen Z’s New Financial Playbook?
...If you started investing early in life, great job! Your next job is simpler; don’t blow it. Don’t chase hype only to panic sell when, not if, the market crashes. If you find yourself checking your investments every day, you’ve invested too aggressively.
Dale Hershman, Principal, Sick Advisory Services, agrees,
“It’s a simple mathematical fact that a young executive with a propensity to invest can build wealth, even without owning a home. What’s most important in wealth creation is simply time, not necessarily the form this wealth accumulation takes. Starting early in life makes a big difference mathematically. So, if a young executive can rent for less than buying while saving and investing the difference, that’s an option that typically pencils out well in the long term. What can go wrong with this approach? The biggest threat is confusing trading and even gambling with ‘investing.’ Whether you own equity in a home or equity in a selection of valuable publicly traded companies, the key concept is to build solid ownership in assets that only grow over the long term. Too many young people today, especially young men, are seduced by promises of quick money that are often implied, or offered directly, by trading apps, Reddit Groups, or unwise peers. Study after study proves that renting plus investing will only work if the young investor is building up equity ownership for the long term.”
Read the full article here.
