Millennial adults represent a generation that is going through a lot of milestones and “firsts” in their live. This can be a wedding, the birth of a child, the purchase of a home or a new job. In turn, they are also facing specific financial challenges, which, combined with inflation and high rates, can be difficult to navigate.

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When it comes to millennial entrepreneurs, they have an additional set of business and financial challenges to face and said that there are certain policies that they would like to see under a Donald Trump administration. Here are some of them:

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Easing Regulations

Most millennials are in their prime earning years and have been hit doubly hard by the pandemic and inflation impacting their earning power, said Brenda Christensen, a self-made millionaire and CEO, Stellar Public Relations.

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In turn, she said that a Trump presidency would likely reduce inflation by easing regulations on business with savings passed down to consumers.

In addition, Christensen — who worked with Trump while working in PR for The Taubman Company — said that he’s a calculated risk taker and understands the business world implicitly, including entrepreneurship where millennials are in large numbers.

“For example, during his previous administration, his policies reduced burdens on businesses by eliminating taxes and other restrictions, such as loosening FINRA [Financial Industry Regulation Authority] rules which benefitted not only the tech sector and VC [venture capital] funding but overall economic growth,” she added.

Regulation That Makes it Easier to Access Financial and Investing Tools And Broader Use of Crypto

“I think we are living in too much of a top-down, centralized financial system. The cost of investing is too high for a huge percentage of the population, especially for millennials and Gen Z folks,” said Rebecca Liao, CEO of Saga, who also served on Hillary Clinton’s foreign policy team for her 2016 presidential campaign, responsible for Asia trade and economic policy.

As Liao noted, many of them are working part-time or gig jobs that don’t feature 401ks and other automated investment systems for their retirement and most don’t contribute to Roth IRAs.

In turn, she argued that one financial policy Trump could implement is regulation that makes it easier to access financial and investing tools.

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“Crypto is one of the tools for decentralizing our economy and providing fairer, more readily available tools for access to novel financial products that, in turn, are likely to experience relatively greater upside, albeit with more volatility along the way,” she added, noting that making investing in the broader crypto realm more permissible and compliant would be a solid step in the right direction.

Other experts echoed the sentiment saying that this cohort needs crypto friendly policies.

“There are thousands of entrepreneurs developing ideas with world-changing potential using blockchain. They won’t stop, they will simply choose a country with the friendliest policies, where they will make a lot of money and employ a lot of people,” said Mel Gelderman, CEO and co-founder at token.com.

Regulation Helping Consumer Sector Millennial Entrepreneurs-Such as Not Tax on Tips

According to Nick Gausling, a millennial entrepreneur, consumer sector consultant, and managing director of Romy Group, many millennial entrepreneurs outside tech run consumer sector businesses, but the American consumer is “close to tapped out.”

“Trump reviving the No Tax on Tips proposal pioneered by Ron Paul is a big win for these entrepreneurs,” said Gausling.

He argued that first, ending taxation on tips would be a massive direct stimulus for many service workers, especially in lower tax brackets.

“Since every service worker is also a consumer, that stimulus would spill over and improve revenues for businesses across the consumer sector,” he said.

In addition, he noted that this policy could also bring new innovation in labor modeling and better customer service.

“Many consumers are tired of tipping culture run rampant, but if entrepreneurs combined lower base wages with lower retail prices, tax-free tipping could yield higher overall net income for service workers, better customer experience at lower cost for consumers, and more sales and customer retention for entrepreneurs,” he added.

Reducing Taxes for Small Businesses

Trump could introduce several policies benefiting millennial entrepreneurs including the focus on reducing taxes for small businesses, which is key in this case, said Adam, CEO, Ferrari Phoenix Capital Group.

“Lowering corporate tax rates, as seen during Trump’s first term, can free up capital that entrepreneurs can reinvest into their businesses, whether it’s for hiring, expanding operations, or investing in new technologies,” he added.

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This article originally appeared on GOBankingRates.com: Millennial Entrepreneurs: 4 Financial Policies We Want Under a Trump Administration

Think you need a fortune to build wealth? Think again. With the right strategy and a healthy dose of patience, even small monthly investments can grow into substantial wealth over time. GOBankingRates spoke with financial experts to uncover some practical ways to build wealth by investing as little as $100 a month.

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Brandon Galici, CFP and founder at Galici Financial, is all about consistent investing. “As a financial advisor, I often emphasize that there’s no one-size-fits-all ‘magic number’ for monthly investments,” he said. “Instead, I encourage you to focus on your savings rate — the percentage of your gross income you set aside for savings and investments.”

With that in mind, here are five ways to become wealthy by investing just $100 a month.

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Start Early and Be Consistent

Time is your greatest ally when it comes to building wealth. Aaron Cirksena, founder and CEO at MDRN Capital, illustrated this point powerfully by saying, “If at age 25, you just invested $100 a month until you were 65, it could turn into over one million dollars.”

This kind of growth can only come thanks to compound interest over time. The earlier you start, the faster you’ll be on the path to great wealth.

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Focus on Your Savings Rate

Rather than fixating on a specific dollar amount, Galici said it’s all about your savings rate. “A healthy savings rate typically falls between 10% and 20% of your income,” he shared.

To put this into perspective, Galici provided an example: “Let’s consider a household income of $75,000 per year (which is approximately the median household income in the U.S.). At a 10% savings rate, you’d be setting aside $625 per month. Increasing that to 15% would mean $938 per month, while a 20% savings rate would equate to $1,250 monthly.”

If you can swing between 10% and 20% of your income, you’ll most likely be sitting pretty when it comes to retiring.

Leverage Tax-Advantaged Accounts

Anthony DeLuca, an expert contributor for RetireGuide.com, pointed out the power of maxing out tax-advantaged accounts like IRAs. “If you max out the IRA each year (assuming the maximum stays at $7,000), for 40 years with an annual return of 7.0% (roughly the S&P average over the last 25 years after inflation) you will have an ending value of $1.3 million,” he shared.

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This strategy not only helps you build wealth, but also provides tax benefits that can boost your overall returns.

Gradually Increase Your Investments

If investing a large percentage of your income feels overwheming, Galici thinks you should start small and gradually increase your contributions over time. “Start by aiming to increase your savings rate by just 1%,” he said. “On a $75,000 annual income, this 1% increase amounts to $750 per year, or about $63 per month. Once you’ve adjusted to this change, challenge yourself to increase by another 1%, and so on until your savings rate is healthy.”

This slow-but-steady approach allows you to build wealth without changing your entire life overnight..

Automate Your Investments

One of the simplest ways to ensure consistent investing is to automate the process. Galici advised, “Automating these savings can make the process even easier.”

By setting up automatic transfers from your checking account to your investment account each month, you won’t be tempted to spend that money elsewhere. The end result will be that you’re working toward your savings goal in a sustainable way.

The Power of Long-Term Investing

Here is where it breaks down into some fascinating numbers. According to Galici, if you’re 35 yeras old and invest the following amounts monthly, assuming an 8% annual return, you could potentially accumulate:

• $930,000 at $625/month

• $1.4 million at $938/month

• $1.85 million at $1,250/month

Consistent investing, even in relatively modest amounts, can (and most likely will) lead to significant savings over time.

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This article originally appeared on GOBankingRates.com: I’m a Financial Advisor: 5 Ways To Become Wealthy by Investing Just $100 a Month

We recently compiled a list of the 9 Best Financial Services Stocks To Buy Now. In this article, we are going to take a look at where Bank Of America Corporation (NYSE:BAC) stands against the other financial services stocks.

Although there was significant turbulence in the financial markets in August, the state of global financing is still stable. Despite considerable falls in the equities and corporate debt markets, financing conditions have not tightened significantly, suggesting borrowing resilience.

However, following an almost 10% drop, the broad US stock market is still 5% below its peak in July. Similar declines have been seen in European stocks, although there has been some recovery in these markets; the 500 large companies market is up 3% from its August low.

The markets for corporate bonds have also been impacted. Higher-rated corporate bonds saw an increase in risk premiums, but not to the point where it materially affected borrowing conditions. The current market volatility, according to Chris Jeffrey of Legal & General Investment Management, hasn’t affected corporate or household finance conditions significantly. This perspective is supported by the financial conditions index of a major global financial institution, which indicates that while circumstances have tightened since mid-July, they are still historically loose and more accommodating than they were for a large portion of the prior year.

Amidst the financial turbulence, the financial services industry has faced challenges, but it also showed resilience. The long-term outlook for the industry remains positive. As we have mentioned in our article, “25 Biggest Financial Firms in the World,” the financial services industry is expected to rise at a CAGR of 7.7% over the next few years, from $31138.82 billion in 2023 to $33539.52 billion in 2024. In 2023, Western Europe accounted for the largest portion of the financial services market, with North America coming in second. Financial services are transforming as a result of generative AI, which presents chances for creativity and efficiency.

The McKinsey Global Institute (MGI) claims that banks are racing to implement Gen AI and that its full potential can be realized with the correct operational model in place. According to MGI, the use of Gen AI in the global banking market has the potential to generate value of $200 billion to $340 billion per year, or 2.8 to 4.7 percent of industry revenues, primarily through increased productivity. A new study by MGI examined the usage of Gen AI by 16 of the largest financial institutions in the US and Europe, which together manage assets worth close to $26 trillion. According to the study, more than half of the organizations examined have embraced a more centrally driven structure for next-generation AI, even if their current data and analytics architecture is relatively decentralized. Moreover, artificial intelligence, according to EY, is changing financial markets by improving risk management and enhancing customer experience due to its wide range of uses.

The RSM US’s Financial Services Industry Outlook 2024, also notes that the financial services market is quickly evolving, with a focus on responsible AI in insurance. Similar actions are being taken by states as well. For instance, insurance companies are required by the California Consumer Privacy Act to explain how AI is used in pricing and coverage decisions; violation carries hefty fines. Secondly, the number of retail-friendly investment products is also increasing. Retail investors are the focus of growing interest from asset managers, exchanges, and broker-dealers. Finally, the real exposure of financial institutions to CRE maturities is another trend in the financial services industry. Hence, financial institutions analyzing CRE-related risk should conduct a thorough credit risk evaluation.

Methodology:

We sifted through holdings of financial services ETFs and financial media to form an initial list of 20 financial services stocks. Then we selected the 9 stocks that had the highest upside potential. The stocks are ranked in ascending order of the upside potential.

Some big shots in the financial services industry have been left out owing to our methodology since they had negative consensus upside.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here)

A professional banker providing consultation to a customer in the security of his office.

Bank Of America Corporation (NYSE:BAC)

Analysts’ Upside Potential: 9.22%                

In terms of total assets, Bank of America is the second-biggest commercial bank in the US. Boasting a significant retail banking presence throughout all major U.S. regions, Bank of America Corp (NYSE:BAC) provides services to about 69 million individual and small business customers.

BAC has created a strong brand presence and ease of use for its customers with about 3,800 retail financial locations, 15,000 ATMs, and top digital banking systems. The digital platforms of the bank boast an approximate user base of 46 million, comprising 38 million active mobile users. This suggests that the bank has effectively shifted to digital banking and is capable of meeting the changing demands of its clientele.

Global Wealth & Investment Management (GWIM), Global Banking, Global Markets, and Consumer Banking are BAC’s four primary business segments. By diversifying its business, BAC is able to provide a broad range of banking and nonbank financial services and products while reducing the risk of market and industry-specific downturns.

Bank of America has put in place initiatives that help both customers and staff. The most sophisticated and first publicly accessible virtual financial assistant, Erica, was introduced in 2024 and as of 2024, more than two billion clients had engaged with them. Erica’s skills assist corporate and individual clients throughout the company, including CashPro, Benefits, and Merrill.

BAC raised its minimum hourly wage to $23 in September 2023, with intentions to raise it to $25 by 2025.

Strong performance in the investment banking segment and solid net interest income helped Bank of America Corporation (NYSE:BAC) submit an earnings report card for the second fiscal quarter that was better than anticipated. The price of the shares increased by over 5% as a result of the earnings report, reaching a high not seen since the start of FY 2022.

In general, Bank of America’s robust revenue from trading and investment banking, along with a favorable projection for net interest income, points to the company’s durability and growth potential even in an environment where the fed is trying to curtail inflation. However, increased deposit costs and growing provisions for credit losses are eating into profitability.

ClearBridge Value Equity Strategy stated the following regarding Bank of America Corporation (NYSE:BAC) in its first quarter 2024 investor letter:

BAC is one of the Best Financial Services Stocks To Buy Now since it has promising growth potential, as seen by 19 analysts, BAC has a consensus Buy rating with an average price target of $42.39 and an upside potential of 9.22% from the current stock price of $38.81.

Overall BAC ranks 7th on our list of the best financial services stocks to buy. While we acknowledge the potential of BAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BAC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.