Take some help from the mar­ket

The National - News - - BUSINESS | MONEY & MARKETS -

The mil­len­ni­als in Fidelity’s analysis saw nearly a 32 per cent com­pound an­nual growth rate, the av­er­age amount the ac­count grew each year, over the 10-year pe­riod re­viewed. Fidelity says about 60 per cent of that was thanks to their own ac­tions – those con­sis­tent con­tri­bu­tions – and the rest due to mar­ket re­turns.

Those re­turns come from reg­u­larly in­vest­ing in the mar­ket, whether through a pen­sion scheme or other means, and then stay­ing in­vested de­spite pe­ri­ods of volatil­ity. But re­search has shown mil­len­ni­als tend to be wary of the stock mar­ket.

Ac­cord­ing to a Legg Mason sur­vey from ear­lier this year, 85 per cent of mil­len­ni­als say they’re “some­what or very con­ser­va­tive” when in­vest­ing.

If you’re not sure how to in­vest or how much risk you can tol­er­ate, some com­pa­nies also pro­vide em­ploy­ees with re­tire­ment plan­ning guid­ance. Al­ter­na­tively for those in the UAE, there are a num­ber of in­vest­ment groups that you can join to find out how other res­i­dents in­vest, such as the UAE Bogle­heads Com­mon Sense Per­sonal Fi­nance and In­vest­ing group.

The group is free to join and the best way to get in touch is by vis­it­ing its web­site at bogle­headsuae.wixsite.com/web­site or search for “Com­mon Sense Per­sonal Fi­nance and In­vest­ing” on Meetup and Face­book.

An­other op­tion is wiseuae.com, an in­de­pen­dent com­mu­nity for fi­nan­cial ed­u­ca­tion and sup­port.

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