Orlando-area financial planners say they are hearing of more and more young people investing in the stock market.
‘Investing’ is a term that has been growing recently, particularly among younger groups. Many of those, the younger Gen Z and then Millennials from their mid-20s to mid-30s.
WESH 2 News spoke to leaders at two Orlando area firms: Polley Wealth Management, and AllGen Financial Advisors about what they are seeing.
“A lot of new clients in that age range that are coming in wanting to invest and the stimulus package kind of gives them a jump on, kind of a head start if you will,” AllGen’s Jason Martin said.
“With the younger generation, I think having a little bit more time on their hands has given them an opportunity to kind of have their eyes opened up,” Sean Polley with Polley Wealth Management said.
Lifted up by trends like the GameStop trades, record Bitcoin growth and even the Dogecoin cryptocurrency, young people have found their way through the unique outlook the market has shown during the pandemic.
“Ever since about this time last year, when we got a big pullback in the market, people get excited and start looking at the opportunities that they can find ways to make money,” Polley said.
What are they investing in?
“Your big technology companies are very popular, Tesla obviously has been a really popular one,” Polley said.
New investors have been helped by a surge in different investment apps that make trading affordable, quick and easy, but ultimately, there is a word of caution before jumping in: Having a plan is important.
“There is a difference between investing and trading. I think humanly inside of us a lot of us are seeking to ‘get rich quick.’ When you have this ease of access to get into this tool, that allows you to take stimulus money, or any money for that matter, with the potential and the lure of being able to double, and triple and quadruple that money, that creates a problem in that it almost becomes somewhat of like a gambling habit,” Martin added, “it’s good and bad. I would say a lot of it kind of leads on the tempting ‘Las Vegas style’ gambling side which you’ve got to be really careful with, but they do have some decent tools out there to help you build actually a portfolio.”
“What we try to work with people on is, having a game plan for long term investing and understand that you are going to ride a roller coaster sometimes, but really over the long term, the best way to grow your money is to invest in good quality companies,” Polley said.
READ THE FULL STORY:More young people getting into stocks, investing stimulus funds