Seth Hayes Give 5 Pointers on Financial Stability to Millennials
Even the oldest millennials are far from their retirement years, and they may face big obstacles before they get there. Seth Haye, who helps manage $1.2 billion for the Oaks Group within Morgan Stanley Wealth Management, said he always tried to impart these ideas to younger investors to help them decide what they want, and get ahead so they can fulfill those plans. Forbes dubbed Haye the best millennial wealth adviser in the US in 2019, and he has ranked high on similar lists for the past three years
- Live beneath your means
"You've got to be willing to adjust your cost of living early in life," he said. "Once you get used to the nicer things, it's really tough to go to the things that aren't so nice."
- Prioritize, then plan
Hayes says the two bigest future priorities for millenials are a house and retirement savings. Haye says a home is a worthwhile investment, even though the returns generally aren't huge. For Retirement Haye urges clients to start saving as early as they're able so they can benefit as much as possible as their returns compound over the years.
- Make investing a game
Haye recommends creating a new goal every year and trying to meet and then exceed it, and to treat that habit as something enjoyable instead of a chore.
- Don't sweat over asset allocation
"Don't get too hung up on the asset allocation and the individual stock selection," he said. "That should be secondary to ... your ability to make these contributions each year early in your career, and dollar cost average into the market, and that's going to take away some of the general market risk."
- Be excited for bad news
"I try to get them to be excited for corrections and bear markets and recessions because that is usually where the real money is made," he said. "You're going to have the opportunity, especially if you're really early in your career, to double the contributions to your portfolio or triple the contributions to your portfolio, and to buy many more shares while the market is cheap."