Even Staff

2016-06-08

6 Investing Tips 20-Somethings Should Know

The first decade of adulthood is a flurry of foundation-building activities, including starting your career, building a family and establishing the assets you'll eventually rely on in retirement. Unfortunately, saving for a future 40+ years away usually isn't top of mind for most 20-somethings. Investing often falls low on the list of priorities, with many young adults assuming they've got plenty of time to establish and contribute to retirement accounts. While it's true time is on your side in your 20s, getting an early start on your financial future can put you well ahead of the game. Although it may seem overwhelming, there are ways to wade into the investing pool without diving directly into the deep end. For example:

 

Maximize Your Contributions

 

Experts say 20 percent of your income should go toward savings and investments. While your income may not be at its peak in your 20s, you likely have fewer demands on your resources (like paying for a mortgage and your kid's college tuition) and can better leverage whatever salary you're earning. One of the easiest ways to get started is by taking advantage of your employer's 401(k) match. Many companies help you save for retirement by offering matching contributions to your 401(k) investing account, usually $.50 for each $1.00 you save, up to a specific percentage. At this stage, you should at least pony up enough of your own dough to earn the full employer match - otherwise, you're leaving free money on the table.

 

Automate the Investing Process

 

With all the burgeoning responsibilities of your post-graduation years, managing your investments is one that can easily slip your mind. By putting your investment activities on autopilot, you can free your time for other tasks without neglecting your financial future. A robo-advisor can provide many of the benefits of an in-person investment advisor at a much lower cost. And since you're not involved in the day-to-day management of your account, you can avoid getting spooked and making unwarranted and emotional changes to your account based on natural market fluctuations. (However, you'll still need to examine your accounts at least annually to make sure you're on track to reach your goals.) Make it even easier on yourself by opting for automatic increases to your investing accounts. As your salary rises, you can automatically save more without noticing a big impact to your paycheck - it's a win-win!

 

Achieve Built-in Diversification

 

You don't have to be an investing guru to have a well-balanced portfolio. Diversified investment vehicles such as index and target-date funds are designed as micro-representations of the entire financial market, piecing together stocks and bonds from different sectors and risk levels without requiring you to select each fund separately. This can help de-clutter your portfolio and provide for even more automation during these early investing years, as a target-date fund will automatically adjust its risk level as you get closer to retirement. Keep an eye on costs such as trading and maintenance fees; the expense ratio should be no higher than roughly 0.5 percent.

 

Remember, Every Little Bit Helps

 

Putting a few dollars here and there into an investing account may not seem significant, but those little cash injections can go a long way over time. If you put just $4 into a jar every day - the cost of your morning latte - you'll have more than $100 to invest every month without really trying. And with many online brokerages offering low account minimums (or no minimums at all), you can pretty much start investing with the coins under your couch cushions.

 

Use Time to Your Advantage

 

Time is not a renewable resource, and your future self will thank you for every penny you put toward investing while you're in your 20s. By starting early, you can build yourself a hefty nest egg to help pay for the retirement lifestyle you want. It can be difficult to truly appreciate the value of those funds 40 or 50 years from now, but some simple math may make it easier: If a 25-year-old invests $100 per month and achieves a modest 6-percent rate of return, they will have accumulated $185,700 by age 65. Waiting until 35 to start investing cuts that amount to $94,800, a difference of $90,900. That's no chump change!

 

Be Aggressive

 

All too often, 20-somethings keep their money in safe, easily liquidable investments, such as certificates of deposit and money market accounts. While you might be wary of the financial markets following the ups-and-downs of the last several years, these conservative investment choices could be harmful to your future. Why? Because the lower rate of return usually doesn't keep up with inflation over the long run. That means you'll eventually end up with an investment that's not much more valuable than it would be had you stashed your cash in a shoebox at home. Opening yourself to more risk, such as equities, will drive the growth you need to build long-term wealth. Plus, your age means you'll have the opportunity to recoup any losses you may experience.

 

Now's the Time

 

Your 20s are a time of learning and growth that set the stage for the rest of your life. These years are a once-in-a-lifetime chance to leverage time, opportunity and the power of compounding interest to create a comfortable financial future. What are you waiting for?

Disclaimer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Even Financial product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any information or statistical data sourced by Even Financial through hyperlinks, from third-party websites, are provided for informational purposes only. While Even Financial finds these sources to be accurate, it does not endorse or guarantee any third-party content

Proven Scale & Trust

$525B+

in consumer applications for financial services

100M+

consumer profiles generated

6.5 Million+

applicants routed monthly

What our partners are saying

"... generating some of the highest approval rates and conversion rates among our online acquisition partners. The transparency and focus on data have allowed us to drive consistent growth and success each month. "

"Even enabled MoneyLion to... streamline our user experience, serve a broader set of our customers, and improve key monetization metrics... driving 4x+ growth since launch."

"... a streamlined consumer experience, helping millennials with no collateral, budget, or saved money. Even’s impressive matching algorithms simplify the process of finding the best personal loans to meet your needs."

"... a truly modern and easy to use platform for the financial services marketing world. They make it easy to develop consumer friendly, innovative products in a space dominated by legacy platforms."

"... generating some of the highest approval rates and conversion rates among our online acquisition partners. The transparency and focus on data have allowed us to drive consistent growth and success each month. "

"Even enabled MoneyLion to... streamline our user experience, serve a broader set of our customers, and improve key monetization metrics... driving 4x+ growth since launch."

"... a streamlined consumer experience, helping millennials with no collateral, budget, or saved money. Even’s impressive matching algorithms simplify the process of finding the best personal loans to meet your needs."

"... a truly modern and easy to use platform for the financial services marketing world. They make it easy to develop consumer friendly, innovative products in a space dominated by legacy platforms."

Mike Doniger
Head of Business Development and Partnerships

Awards

Press

Read all about it!

Even Financial Partners with Figure to Add Blockchain-Enabled Personal Loan Products to its Financial Services Marketplace
EVEN
Even Financial Partners with Figure to Add Blockchain-Enabled Personal Loan Products to its Financial Services Marketplace
New York, New York – June 2, 2021 – Even Financial (“Even”), the leading search, comparison, and recommendation engine for financial services, has announced a new partnership with Figure to launch the company’s personal loan products on the Even platform. Leveraging machine learning and advanced data science, Even solves a significant pain point in financial services acquisition by seamlessly bridging financial institutions and channel partners via its industry-leading API and embeddable solutions.   Figure is a fintech company that leverages AI, blockchain, and analytics to deliver innovative consumer financial products with speed and ease. Figure has dramatically decreased the time it takes for consumers to secure loans and has significantly reduced the costs associated with loan origination, servicing, financing, and capital markets execution. The company was founded in 2018 to unlock new access points for consumer credit products that can transform the financial lives of its customers. In addition to personal loans, it provides mortgage refinancing and home equity release solutions, including home equity lines of credit, home improvement loans, and home buy-lease back offerings for retirement.   Figure is an exciting, advanced provider that is driving transformational change in consumer credit,” said Phill Rosen, Founder and CEO of Even Financial. “We’re thrilled to welcome them to Even’s unparalleled network of loan products.”   Shwetabh Gautam, Director of Financial Institution Partnerships at Even added: “We continue to see a strong resurgence in the demand for lending products across the millions of consumers Even surfaces offers for each month. The addition of cutting-edge partners like Figure strengthens our ability to connect consumers with the loans best suited for their unique needs.”   Even offers the largest network of premium, API-connected loan providers. Enterprises and established publishers such as MoneyLion and TransUnion partner with Even to power financial product offers for loans and other financial services including insurance, credit cards, and savings. Within loans, Even continues to expand its vast offering, recently launching products for secured lending, line of credit, and auto refinancing.   The launch of Figure on the Even platform enables consumers to get matched with personal loans of up to $50,000. Figure offers a 100% online application that allows applicants to apply and see their rate in minutes and access funding in as few as two days.   “Phill and the team at Even share our vision of leveraging blockchain technology to make financial services simpler, faster, and personalized. Through the Even platform, we will be able to reach a broader and more diverse set of consumers seeking our innovative credit products,” said Brad Simmons, CMO of Figure.   Even has continued its rapid growth trajectory in 2021, facilitating over $3 billion in consumer credit issued through its API and expanding its platform to over 400 partners. Earlier this year, Even was named one of “America’s Best Startup Employers'' by Forbes for 2021 and placed in the Top 50 of the 2020 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world.    About Even Financial Founded in 2014, Even Financial is a B2B fintech company that is transforming the way financial institutions find and connect with consumers. As the leading search, comparison, and recommendation engine for financial services, Even seamlessly bridges financial institutions (including American Express, Goldman Sachs, and SoFi) and channel partners (such as MoneyLion and TransUnion) via its simple yet robust API and embeddable solutions. Even turns any consumer touchpoint into a comprehensive financial services marketplace with full compliance and security at scale. The company is backed by leading financial services firms and VCs, including American Express Ventures, Canaan Partners, Citi Ventures, Fidelity’s F-Prime Capital, Greatpoint Ventures, Goldman Sachs, LendingClub, and MassMutual Ventures. Learn more at www.evenfinancial.com.  About Figure Figure is transforming the trillion dollar financial services industry using blockchain technology. In three short years, Figure has unveiled a series of fintech firsts using blockchain for loan origination, equity management, private fund services, banking, and payments sectors – bringing speed, efficiency, and savings to both consumers and institutions. The company was founded in 2018 by serial technology entrepreneur Mike Cagney, who also founded SoFi and built the company into a multi-billion dollar business under his leadership as CEO. Learn more at www.figure.com.   Media Contact media@evenfinancial.com
PYMNTS: Even Launches Embedded Finance App on Salesforce
PYMNTS
PYMNTS: Even Launches Embedded Finance App on Salesforce
Now, financial advisors and other businesses will have a way to leverage Even’s platform for their clients. ‘Financial Products for Salesforce’ - Powered by Even, a plug-and-play app available on the Salesforce AppExchange, matches consumers with real-time, personalized financial product offers.   Click below to read more at PYMNTS.com.
Even Named to Forbes’ List of “America’s Best Startup Employers” for 2021
FORBES
Even Named to Forbes’ List of “America’s Best Startup Employers” for 2021
After evaluating 2,500 American startups with at least 50 employees, Even has been named in the Top 500 of Forbes’ second annual list, which recognizes companies that stand out in: employer reputation, employee satisfaction, and growth.   Click below to see full listing.