Thanks to the technology-fueled alternative finance revolution, there are now more investment opportunities and options than ever before. Unfortunately, many millennials are not taking advantage of the chance to put their money to work for them and get a head start on their savings while time is still on their side.
A rough start
While the 1980s and 1990s ushered in unprecedented stock market returns for U.S. investors, many millennial investors were welcomed to the world of Wall Street by a pair of the worst market collapses in decades: the Dot Com Bubble in 2000 and the Financial Crisis in 2008. Millennials had only begun to dip their toes into the investing waters only to have them bitten off by severe market sell-offs. Understandably, a recent Capital One ShareBuilder survey indicated that 93% of millennials are less confident about investing due to mistrust of the markets and/or a lack of investing knowledge. A 2015 Bankrate survey showed that only 26 percent of adults under 30 own any stocks at all. A related Goldman Sachs study found that only 18 percent of young adults trust the stock market as the best way to save for the future.
State Street recently revealed the end result of these fears: millennials are holding about 40% of their portfolios in cash. Unfortunately, that behavior ultimately leads to missing out on critical years of compounding returns when saving for retirement. While it’s reasonable for millennials to be skeptical of the market in the short-term, history and math show that buying and holding stocks at a young age has been the easiest way to retire wealthy since the turn of the 20th century. From 1900 to 1999, the stock market averaged a 10.4% annual return. At that rate of return, investing just $5,200 per year ($100 per week) every year from age 30 to age 59 would allow an investor to retire a millionaire. Albert Einstein once spoke of the power of compound returns. “Compound interest is the eighth wonder of the world,” he said. “He who understands it, earns it… he who doesn’t… pays it.” There’s no question that the Dot Com Bubble and the Financial Crisis were devastating for the stock market in the short-term. But the key to stock market investment is also the key to compound returns: time. Even an investor that bought an S&P 500 index fund at the height of the Dot Com Bubble would still find themselves up more than 40% today, well more than the 0% return of cash.
Even if millennials are aware of the benefits of owning stocks, mistrust of the financial community remains a hurdle. However, what millennials lack in trust for the stock market, they make up for in trust of themselves. Eighty-seven percent of millennials say that they trust themselves to make investment decisions on their own. That number is way ahead of the 68% of seniors who report a similar level of investing self-confidence. Tech-savvy millennials can now place their faith and their savings in alternative market investments, such as robo-advising sites and market motifs. Robo-advising companies like Wealthfront and Betterment allow clients to access automated money management services and algorithm-based trading advice. Robo-advisors operate based on the same underlying market principles that human financial advisors use, but clients don’t have to deal with management fees and the possibility of human error. For millennials that want to hand-select their own investment portfolio but maintain the safety of diversity, Motif Investing offers alternatives to traditional ETFs called motifs. Motif Investing customers can create their own “homemade” ETFs by selecting up to 30 stocks to include in a single motif, or theme.
Millennials that witnessed the last two market downturns have plenty of reason to be leery of the stock market. However, they must remember that, when it comes to retirement investing, a couple of years or even a decade of market volatility has relatively little impact on long-term returns. Alternative finance technology offers an unprecedented degree of control and transparency to millennial investors. Luckily, you don’t have to be Albert Einstein to recognize the power of starting a long-term market investment strategy at a young age and letting compounding returns work in your favor.
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.
credit facilitated via our platform
consumer inquiries quarterly
NEW YORK, NY, March 15, 2022 -- Even Financial ("Even"), the category-leading embedded finance marketplace and independently managed subsidiary of MoneyLion, Inc. (NYSE: ML), has announced a new partnership with Tally, a leading financial automation company, to include the company's low-interest credit offerings on its platform.
"Tally has built a powerful tech-enabled system to help people solve one of the biggest financial problems today: paying off credit card debt," said Phill Rosen, Founder and CEO of Even. "We're thrilled to welcome Tally's line of credit offerings to Even's unparalleled network of financial services providers."
Tally is designed to help its members pay off their debt faster and save them money on interest and late fees. Members can lower their monthly payment with Tally's lower-interest line of credit, if eligible. Typically, at least a 580 FICO score is needed. Tally's system is customized to save people as much money as possible.
"Americans today owe nearly $1 trillion in credit card debt. We know from our research that many want to pay down their debt but struggle to get started. That's where Tally comes in," said Jason Huynh, VP of Credit, Analytics & Operations at Tally. "Our system combines financial automation with a low-interest line of credit to give people the help they need to get on track to pay off their credit card debt for good. We're thrilled that our partnership with Even will allow Tally to help even more people."
The launch of Tally on the Even platform enables consumers to get matched with Tally's custom, low-interest line of credit accounts of up to $25,000 in just a few minutes. After getting matched, eligible consumers complete the process through the Tally app. There are no out-of-pocket costs.
Tally is the latest partner to join the Even marketplace, a growing network of over 400 financial services partners and 500 channel partners covering a breadth of financial services including loans, credit cards, mortgages, savings, and insurance products. Even's marketplace technology enables any company to add financial products to its business, with full compliance and security, at scale.
About Even Financial
Even digitally connects and matches consumers with real-time, personalized financial product recommendations from banks, insurance carriers, and fintech companies on mobile apps, websites, and other digital touchpoints through its marketplace technology. Even's infrastructure leverages machine learning and advanced data science to solve a significant pain point in financial services customer acquisition, seamlessly bridging financial services providers (such as SoFi) and channel partners (such as TransUnion) via its industry-leading API and embedded finance marketplaces. Even enables any company to add financial products to its business, with full compliance and security at scale. Even was named one of "America's Best Startup Employers'' by Forbes for 2021 and was named to the 2021 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world. Learn more at www.evenfinancial.com.
Tally is a consumer financial tech company pioneering full-service financial automation to help people save money, pay down their debt and reach their goals sooner. Founded in 2015, the company built the first fully automated debt manager to help put billions of dollars back in people's pockets. In 2021, Tally was named to Fast Company's Most Innovative Companies list and to Quartz's Best Companies for Remote Workers. Previously, Tally made Forbes' Next Billion Dollar Startup list, Forbes' Fintech 50 list, and the app won Real Simple's Smart Money award. Learn more at meettally.com.
NEW YORK, NY, April 19, 2022 -- Even Financial (“Even”), the category-leading embedded finance marketplace and independent subsidiary of MoneyLion, Inc. (NYSE: ML), has announced it has now facilitated over $5 billion in consumer credit, as of March 2022. Leveraging machine learning and advanced data science, Even solves a significant pain point in financial services customer acquisition by seamlessly bridging financial service providers and channel partners via its industry-leading API and embedded finance marketplaces.
“Surpassing $5 billion in consumer credit facilitated through our marketplace is an enormous achievement for Even as we continue to help build the future of finance technology,” said Phill Rosen, Founder and Chief Executive Officer. “Access to credit has long been a challenge for many hard-working Americans, and we are dedicated to alleviating this issue by providing consumers personalized financial services offers that meet their needs, when they need it most. Reaching the $5 billion milestone reaffirms that our mission is driving significant value for both consumers and our partners."
Even has grown its embedded finance marketplace offerings beyond loans to cover a breadth of additional financial services including credit cards, mortgages, savings, and insurance products. Within loans, Even offers the largest network of premium, connected loan providers - across a wide array of products including unsecured personal loans, secured personal loans, line of credit, student loan refinancing, and auto loan refinancing. Leading financial services providers, such as LendingClub and SoFi, partner with Even to reach qualified consumers searching for loans, benefiting from Even’s unparalleled network and native integrations.
The company has continued its rapid growth trajectory in 2022, growing its network to include over 400 financial services partners and 500 channel partners. Even's marketplace technology enables any company to add financial products to its business, with full compliance and security at scale. Earlier this year, Even announced the close of its acquisition by MoneyLion, the award-winning digital financial platform, which will continue to advance their combined efforts of providing financial access and advice to hard working Americans.
About Even Financial
Even digitally connects and matches consumers with real-time, personalized financial product recommendations from banks, insurance carriers, and fintech companies on mobile apps, websites, and other digital touchpoints through its marketplace technology. Even's infrastructure leverages machine learning and advanced data science to solve a significant pain point in financial services customer acquisition, seamlessly bridging financial services providers (such as SoFi) and channel partners (such as TransUnion) via its industry-leading API and embedded finance marketplaces. Even enables any company to add financial products to its business, with full compliance and security at scale. Even was named one of "America's Best Startup Employers'' by Forbes for 2022 and was named to the 2021 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world. Learn more at evenfinancial.com.