Millennials are living in an increasingly volatile financial climate, so it’s no surprise that the idea of investing in the stock market can be intimidating. However, despite its reputation as a risky endeavor with high stakes and even higher rewards, investing in stocks doesn’t need to cause fear and anxiety. In fact, when done wisely and with research-backed strategies, there are many reasons why millennials should consider putting their money into stocks – and these reasons could reap more rewards than traditionally accessible savings accounts or low-return bonds. In this blog post, William Schantz discusses some great advantages of getting involved with the stock market for millennials who aren’t sure where to begin but want to open up potential avenues for increased wealth down the line.
William Schantz Lists Reasons Millennials Should Stop Being Afraid of the Stock Market
According to William Schantz, millennials have long shied away from investing in the stock market due to fear and uncertainty, but this generation should not be afraid. In fact, there are many reasons why Millennials should embrace the stock market as a way to build wealth and financial security.
First, investing in stocks is an excellent way to create passive income. By choosing well-performing stocks, Millennials can earn dividends that provide a steady stream of income. This can allow them to save up for major purchases or invest more money into other investments while still generating returns on their money. Additionally, with the right strategy and research, Millennials can even increase their return on investment by frequently trading in volatile markets with short-term holdings.
Second, stocks offer Millennials long-term capital appreciation. As a stock’s price rises, an investor’s portfolio value also increases, allowing them to increase their wealth over time. According to a recent study by the Investment Company Institute, since 1926, stocks have provided an average return of 10% per year. This means that, over time, investors can significantly grow their wealth with minimal risk.
Finally, investing in stocks allows Millennials to benefit from tax advantages, says William Schantz. For example, the government offers qualified taxpayers deductions on dividend income and capital gains taxes on profits earned from selling stocks. Additionally, holding investments for more than one-year results in lower tax rates compared to those assessed on short-term holdings held for less than one year. This makes investing in the stock market a potentially lucrative way to reduce one’s tax burden.
To illustrate the potential of stock investing, consider the story of Mark Cuban. At the age of 31, Cuban invested $10,000 in an internet streaming video company called Broadcast.com. Within a few years, he sold his ownership stake for $5.7 billion dollars – making him one of the most successful tech entrepreneurs in history! This goes to show that stocks can reap tremendous rewards when managed properly.
William Schantz’s Concluding Thoughts
In conclusion, Millennials should not be afraid to invest in the stock market as there are many advantages that can help them achieve their financial goals. With the right research and strategy, stocks offer excellent returns on investment over time and provide numerous tax advantages. According to William Schantz, by taking advantage of these benefits, Millennials can create a secure future for themselves and their families.