Today’s graduates face hardships few have seen the likes of before now. It is easy to get consumed by the obstacles that lie ahead for the Gen Z’ers in our families, but if you pay attention, you’ll notice the times have uniquely positioned us to give our graduates the ultimate gift: one that keeps giving over time.
While there’s no way to be certain of what the future holds for Gen Z, we can rally around these new graduates in a show of support that extends far beyond here and now. By contributing to a fund like CornerCap’s My Accumulation Plan (MAP), we can set new graduates up to benefit – possibly more so than those who started investing in the bull market of recent years – from an economy that has the potential to recover and grow to new heights.
Case in Point: What 2009 Graduation Gifts Tell Us
Let’s say you gifted $5,000 each to young graduates in your family. The gift to your older graduate, a Millennial who finished college in 2007, has likely doubled over time. Then came 2009, when your younger graduate left college and started their career in the wake of the Great Recession. You gifted this younger child the same amount, but the money has more than tripled in the years since the initial investment.
When you fund a MAP account for a new graduate, you’re giving a powerful educational gift. You’re teaching your loved one (1) the power of investing early in their career and (2) that there is inherent volatility in equities investing, making it a long-term investment that will experience ups and downs over time.
A down market may seem like the worst possible time to enter the stock market. But new grads have the benefit of time for their portfolio to grow as the market rebounds. Because of that, we have the opportunity to pass this real-world lesson down to the next generation of wealth accumulators with a simple gift.
Graduation is just around the corner and chances are, the new grad in your life could use a pick-me-up right now. They may not get to walk across the stage wearing a cap and gown in front of hundreds, but with your help, they can turn their situation around with the realization of the potential that lies right in front of them.
Talk to your CornerCap Wealth Advisor about how to open up a MAP account for your soon-to-be grad.
Past performance is no guarantee of future results, and CornerCap’s strategies, like most investment strategies, involve the risk of loss. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable. All investors are advised to fully understand the risks associated with any kind of investing they engage in.