Young investors have a lot to worry about these days including mounting inflationary pressure, market uncertainty, the fate of social security, extensive college debt, and so much more.
While it may seem like a good idea to retreat to the corners of TikTok, experts say it’s more critical than ever for young people in their teens, 20s, and 30s to prepare for their financial future.
That was just one of the topics tackled during TheStreet’s How to Play the Inflation Trade, a FREE webinar, hosted by Susan McGinnis.
- David Schassler, Portfolio Manager of the Inflation Allocation ETF, RAAX, at VanEck
- Bob Lang, Action Alerts Portfolio Manager
- Nancy Davis, CIO, Quadratic Capital Management’s
WATCH: How to Play the Inflation Trade, a FREE webinar, hosted by Susan McGinnis.
Editor’s note. The webinar was recorded on October 28, 2021.
Biggest Hurdles Facing Young Investors
The biggest hurdles facing Gen Z and millennial investors, according to Lang include:
- Unknown impact of the inflationary era
- Pandemic-related financial strain
- Tough job market
- Crushing student debt
- Limited affordable housing
- The uncertain fate of Social Security
“Inflation’s here. It’s ugly. The good news is that people can do something about it“, says Schassler.
“Young investors should be a bit more aggressive on the risk curve and take advantage of new opportunities (like bitcoin and crypto mining). Thankfully, there are more opportunities today than there were when I was in my 19s or 20s”, says Lang. See more from Lang in the video excerpt above.
Video Transcript Below
Susan McGinnis: What about demographics and your advice for the different generations, like Gen Z versus retirees?
Bob Lang: If you go across the spectrum of demographics here, form from 19 to 29-year-olds all the way up to 85 to 95-year-olds, different priorities, obviously. And also retirement benefits. My kids are in their early 20s, and I’ve told them to be prepared for the fact that there’s going to be no social security for you when you retire in 40, 45 years. If there is social security, they probably won’t be gaining benefits until they’re 95. So, it’s on them to live as long as they possibly can so they can reap some of the benefits of the money that they’re going to get.
In all likelihood, there’s not going to be enough money for them. So they really have to turn to themselves to take care of their future. It’s always been there, but I think it’s more critical now today for young people in their teens, 20s, 30s, 40s to be prepared for that. And for them to be prepared for that is to be a little bit more aggressive on the risk curve and take advantage of the opportunities that are there.
Bob Lang: And thankfully, there are more opportunities today than there were when I was in my 19s or 20s. There’s crypto. There’s a lot of other internet-type operations out there. Mining companies that are available to them to invest in.
I think, again, what’s difficult here is to try and raise enough money and earn enough money. The yield that they’re going to have to earn is quite higher– it’s a much bigger hurdle than it was for me when I was younger. Even the generation of retirees right now.
So it’s a difficult task. I don’t think it’s impossible.
Video Highlights | How to Play the Inflation Trade
- 00:06:30 Can the Federal Reserve stop inflation?
- 00:10:40 Stocks to benefit in an inflationary environment
- 00:11:20 Inflation-hedging equities with strong yields
- 00:12:30 Key moves to inflation-proof your portfolio
- 00:21:30 What history tells investors about inflation
- 00:23:00 Inflation Allocation ETF, RAAX
- 00:30:20 Companies investing in the green transition
- 00:31:30 Why investors should consider the energy sector
David Schassler, Portfolio Manager of the Inflation Allocation ETF, RAAX, at VanEck sat down with TheStreet’s Susan McGinnis, as part of our FREE webinar series:How to Play the Inflation Trade, brought to you by our partners at VanEck.
Watch the full interview and learn what investors should do now.