Amarillo financial planners see more young people investing and saving
AMARILLO, Texas (KFDA) - The pandemic has motivated more young people to focus on their finances.
“They really don’t want to work all of their life,” said Steve Swicegood, fee-only financial planner at Conscious Money Solutions.
In response to the economic struggles of the pandemic and desire to live a different lifestyle than their parents, some younger investors are taking risks.
Investing trends include, investing in individual stocks, purchasing cryptocurrency and saving towards retirement.
“They were really serious about putting money back,” said Swicegood.
Within last year, financial planners in Amarillo have seen more people between ages 25 to 40 saving rather than spending. A growing trend that has been accelerated by the pandemic.
“Job insecurity and financial insecurity, that sort of added some fuel or some impetus onto their desire to save,” said Swicegood. “Then getting that nice bonus stimulus check. What we’re hearing frankly is that it either went to savings or it went to reduce debt.”
Rather than the stimulus checks, the chief operating officer at Hoyl Financial, Derrick Coldwell believes, having more free time to research is what has prompted some young people to get into trading.
Experts say new investors have been helped by a surge in different apps that make trading affordable, easier and quicker.
“It’s easy to invest, but it’s harder to know what to invest in,” said Swicegood.
Swicegood says many of his clients have opened Roth IRA accounts, which are special retirement accounts, where you pay taxes on money going into it and future withdrawals are tax-free.
New investors are recommended to seek guidance before investing their money.
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