The Younger Generation

For Millennials, the coronavirus has created an investment opportunity.

As the stock market plummets, Millennials should be gearing up for one of the best long-term investment opportunities in their lifetimes.

Historically, investors entering the market after declines of 10% or more during a calendar year would have earned an average of 2.1% more than the historical market average of 10.2% for a return of 12.3%. That additional 2.1% over a 30-year period would result in about 76% more money in your account after 30 years.

The opportunity to earn this additional return by investing at the appropriate time could be the difference between a comfortable retirement and one not so comfortable. The year 2021 should be a great year for Millennials who are ready to start their investment programs.

For perspective, the worst return since 1926 over a 30-year period in the stock market was 8.47% and the best return was 13.75%. Millennials who act appropriately, regardless of where the stock market ends the year, should look forward to returns closer to the higher end of the range over the next 30 years.