Times have now changed and many of these changes have hit the millennials really hard. In order to adapt financially, people have brought about a major change to the things they do. Many millennials are currently faced with the latest realities amidst the wake of the COVID-19 pandemic. As one among five have been put out of job, as long as finances are concerned, there is a desperate helplessness among many.
During these unprecedented times, there are several ‘firsts’ for the millennials, like changes to jobs, the way they’re investing, altering prospects for purchasing a home and a big first for most is their move towards selling their composition of stocks.
Shifts in investment
It is rather too unfortunate to see that investing is always punctuated with fear. A Think Advisor survey revealed increased anxiety among the millennials regarding investing during the Coronavirus pandemic. As per the survey, it was found that the anxiety led to some of biggest changes to the investment strategies including 34% who shifted to more conservative investments. 18% on the other hand, moved to other aggressive strategies.
Although it might be scary during these unpredictable times, make sure you don’t panic as you try to decide your investment strategy. For people with company stock, creating a plan involves recognizing how the stock can tie into risk tolerance. This plan will let you evaluate how such investments connect to funding the other financial goals.
Emotionally, people tend to get attached to their investments, particularly when it is the stock of a company that has always treated their employees perfectly. However, the more you detach yourself from this aspect, the easier it can be to rationally tweak your portfolio to tailor it to your needs in the long run.
It has been revealed by ThinkAdvisor that 65% of millennials have lost their job or have taken a pay cut because of the pandemic situation. Now that the economy is gradually recovering from the after-effects of COVID-19 and job offers are being accepted, there are new decisions being taken about the compensation benefits that need to be set up. As a part of the compensation package, there are several new hired that offer restricted stock units, stock options or an amalgamation of the two. Spend some time with a trusted advisor to take a look at the professional and personal goals.
Funding goals like a home
Homeownership may seem to be out of reach for several millennials in the approaching years because of the COVID-19 and more than 50 million Americans have already filed for unemployment. It is predicted that as the price of housing continues to lower with recession, the obstacle to enter the market will also be reduced. It could become a prime market for the millennials who didn’t ever purchase a home.
When you require a down payment and the job market seems to be unpredictable, it is best to consider all the resources before making the biggest purchase of your life. Selling some stock options to fund a new home purchase has lifestyle benefits and corresponds with obtaining a considerable financial goal for many people.
So, if you think that the pandemic has pushed you into a different unknown territory and you’re being subject to financial firsts.