Some people may consider me an adult (okay, very few people in my life would actually say that), but that is definitely not how I see myself. Sure, I may look like I have my life together on Instagram, however I can definitively tell you that I do not. I will wait until the last foods I have in my cupboards are quinoa and saltines before I go grocery shopping. I have no sense of direction and would be a completely lost soul without Google Maps. I also have little to no knowledge of how to manage my finances. I think in the adult department, I’m sort of failing.
As of late, I’ve been very curious about how to manage my finances and investments. Okay, I actually don’t have any investments yet, but I would like to acquire the information I would need to invest in stocks if I wanted them. If you’ve read my list of 30 things I want to accomplish before I’m 30 post, then you’ll know that I want to save 40K within the next five years (which isn’t a small feat when you’re a spender and shopaholic like I am). Thankfully, the lovely people at Tangerine Bank reached out and invited me to an event at BrainStation, where I could educate myself on how to reach my financial goals. Here’s a little overview about the event:
Love and Finance: Your Relationship With Investing
After checking-in and chatting with some friends and obviously grabbing a few Boomerangs for Instagram, the two keynote speakers, Preet Banerjee and Kelley Keehn gave little presentations on personal finance. Preet discussed a high-level overview about finances and investing, explaining everything from the basics of investing and how to navigate investments as a whole. Kelley took the presentation for a fun turn when she started to discuss how millennials deal with discussing finances with partners.
I never realized it before, but a lot of my friends won’t chat with their significant others about how much they make yearly and what their financial goals are. Apparently, back in the day it was actually written into employment contracts that you couldn’t discuss your income with your spouse – but it’s kind of crazy that, that sigma still exists! My boyfriend and I have always been pretty open with how much we make yearly, but that’s due to the fact we think it’s super important for our financial goals to align if we’re going to continue to be in a committed relationship. He’s also a saver and I’m a spender, so we’re very aware of our own little balance. I know it sounds super adulty – but just ask your partner where they want to see themselves financially in five years. It’s pretty interesting to see if your goals lineup!
After the keynote speakers gave us a few laughs and a lot of insight, there were these little “speed dating” sessions where you could chat with a financial advisor about, well anything your heart desired financially, really!
Jonathan and I had an amazing time chatting with our investor, and he even gave us some amazing tips. In order to make sure you have a good amount of money for retirement (which trust me, a lot of us millennials should start thinking about more), this equation is super helpful. If you’re looking into investing, he said that there’s a pretty simple rule of thumb to follow:
Take the number 100 and subtract your age. That’s the percentage of your retirement savings finances that should be in stocks. Then, your age should be the percentage of your retirement savings that you should have in bonds. As you age, this helps your investment portfolio become increasingly lower risk. This is a surefire safe bet if you’re looking into starting investing.
To use myself as an example:
100 – 25 (my age) = 75%
Therefore, since I’m pretty young and have a stable income, I should currently be investing 75%in stocks and 25% should be in bonds. As Preet explained, bonds are a more stable investment that will slowly grow over time, while stocks fluctuate in progress more. The slow rise of your investment is almost always guaranteed with bonds (which is why you want more of your money to be invested in bonds as you age and need a more stable income). Since stocks have the potential to be more risky (but with a greater reward), taking that risk when you’re younger and doing that less and less over time allows you to increase your investment without jeopardizing your investment portfolio too much. Makes sense?
So, even though I’ve already made a savings goal in my 30 before 30, here’s my financial goals starting as of today:
- Using the Tangerine Investment Funds Portfolio Selector, I will find an investment fund that fits my risk tolerance and financial goals.
- Spend less and save more (aka curb my spending habits).
- Save that 40K pretty effortlessly and make an extra 10K in investments!
Wish me luck, folks! If you’re looking to learn more about investing, visit the Tangerine website or call Tangerine to find out more.