Investment Options For Millennials So They Don't Get Stuck In Old Age

Illustration. (Photo: Unsplash)

JAKARTA - Some time ago, a financial innovation company, GoBear Indonesia, in collaboration with Kadence International issued a survey entitled Financial Health Index (FHI). From the survey, there is an interesting fact, that 28 percent of respondents aged 18-25 years or millennials, have not started a financial plan for retirement at all.

In fact, the survey continued, at the age of 35, Indonesians have not started financial planning at all. Only at the age of 41 years, Indonesians have started concrete steps to prepare a retirement plan.

Respondents were selected based on their age between 18-65 years, the number of gender balanced, their monthly income, and their internet access.

Then the multinational financial services consultant, Grant Thornton Indonesia, has an option for the millennial generation to manage their finances so that they can be enjoyed in old age. Grant Thornton called for as many as three investment models that are right for millennials, especially entering 2020, where economic growth is estimated by a number of parties to still be in the range of 5 percent per year.

"Many factors influence millennials to start investing, the most important consideration is usually small capital and easy access through the platform they use on a daily basis," said Grant Thornton Indonesia Managing Partner, Johanna Gani, in a press release, Friday, January 24.

According to him, various investments this year are expected to become increasingly popular, especially among millennials, among others, because changes in lifestyle and environmental demands often require additional income. In addition, the large flow of information related to investment is enough to open the eyes of millennials to start investing.

Johanna Gani explained that the three investments are Peer to Peer (P2P) Lending, which when compared to time deposits or mutual funds, the rate of return can be twice or more. If there is a default, the risk will also be lower with a return within a month.

"Apart from that P2P Lending has good diversification, there is also no long-term commitment. P2P Lending organizers are incessant to educate the market by selling facilities such as being easily accessible anywhere, either via mobile apps or websites, will be more attractive to millennials," he said.

The second type of investment is Equity Crowdfunding, which is currently often an alternative to raising funds without needing an IPO. Even though it looks the same as the existing investment concept, this is only done for issuers listed on the Indonesia Stock Exchange (IDX).

Meanwhile, according to him, the parties who need funding are not only companies that have IPOs, so Equity Crowdfunding is a solution for millennials or MSMEs who are pioneering small and retail businesses that are quite attached to the creative industry to be able to increase production capacity to grow faster.

Meanwhile, the third type of investment is gold, which although it is often considered conventional, but this commodity shows a significant increase, and is predicted to continue to increase in 2020. Similar to P2P Lending, the value of gold also does not fluctuate easily and is resistant to inflation fluctuations. and minimal risk.

In addition, he said, now with the presence of installment services and saving gold starting from 1 gram in several e-commerce sites, which have become daily digital touchpoints for millennials, it is increasingly easier to train investment from an early age.

"Millennials need to adhere to the principle that nothing is instantaneous in investing, fully understanding what investments are most suitable for their character, always studying risks and checking the legality of the companies they invest in are our tips to minimize unwanted risks in the future. , "he said.

Moreover, according to Johanna Gani, entering 2020 it seems that Indonesia cannot expect much from the projected economic growth.

He reminded that several institutions such as the World Bank, IMF and ADB projected Indonesia's economic growth to be in the 5.1-5.2 percent range or below the 2020 State Budget target of 5.3 percent.

This, he said, was still influenced by global economic conditions which were predicted to continue to slow down due to tensions between the United States and China and various problems related to Brexit that had not yet been resolved.

However, he continued, a more stable future Indonesian economic activity after the formation of the 2019-2024 government cabinet should encourage a more positive investment climate.