NEWSBEAT REPORTER
A continuously decaying economy is luring some new blood to the aging world of business. Although real estate and mutual funds draw imagery of senior citizens and mature businessmen, current economic woes are resulting in affordable investments for young adults and college students.
LSU junior finance majors, Michael Canseco and Albert Alexander, collaborated to establish Red Lion Investments, specifically to catch the upswing of the nation’s current financial state. “Our goal is mainly to maximize returns and minimize risk,” said Canseco. This pair is a smaller part of the bigger calling for young investors. According to an IRS income study, people under 50 were the second-highest age group of top wealth holders in the United States between 1998 and 2004.
For the most part, young investors and their advanced technological skills put them at the advantage of having information on money readily available. “I read books, articles and watch CNBC,” said Alexander. “A lot of the stuff may be hard to understand in the beginning, but the more and more repetitions, the more you understand the lingo.”
Although the financial opportunities seem endless, finance instructor, Robert Hines says that young adults should not let shiny new money possibilities become a top priority. “I would tell them [young investors] to focus on limiting the amount of debt they have, and focus on saving their money for any type of rainy day or hiccups that could occur,” said Hines.
Hines also says that young people need to understand the difference between good and bad debt in order to make smart decisions when investing. “A student loan is really an investment in yourself for increased earning in the future-that’s good debt,” said Hines. “But anything where the debt outlives the asset, I define that as bad debt.”
Although Hines advises young investors to err on the side of caution before jumping into future plans, Canseco and Alexander are finding it harder and harder everyday to pass by incoming favorable financial circumstances. “There hasn’t been a time like this is the financial world since the great depression,” said Alexander.
