The Financial Attitudes of High Net Worth Millennials

 

The report – High Net Worth Millennials – studied wealthy investors aged 32 and below, and segmented them into those with a net worth under $1 million and those with a net worth over $1 million.

 

More than half (54 percent) of Millennials with a net worth of more than $1 million said that not returning phone calls in a timely manner is the primary reason they would change their financial advisor.  The second biggest pet peeve is not being contacted in a proactive manner (49 percent), followed by not being provided with good ideas and advice and not having their emails returned promptly (both 46 percent).

 

A slightly less compelling reason for High Net Worth Millennials to change their financial advisor is long-term (over one year) losses to their portfolio (44 percent). Less than one-fourth (21 percent) are concerned enough about short-term losses to their portfolio to shed their financial advisor.

 

Almost half of High Net Worth Millennials identify themselves as Self-Directed investors, meaning they make all of their own investment decisions with benefit of a professional financial advisor. Not surprisingly, they express more of an enthusiasm for investing and a healthy regard for their financial acumen. Nearly six-in-ten (59 percent) of High Net Worth Millennials said they enjoy investing and that it is something they do want to give up. In comparison, 49 percent of Baby Boomers said they enjoy investing.

 

Further, 58 percent of High Net Worth Millennials said they like to be actively involved in the day-to-day management of their investments, compared with 55 percent of Gen Xers, 51 percent of Baby Boomers and 55 percent of seniors.

 

The highest percentage of High Net Worth investors who consider themselves very knowledgeable about financial products and investments are Millennials (30 percent) and seniors (29 percent), followed by Gen Xers (25 percent) and Baby Boomers (23 percent). Across age levels, High Net Worth Millennials are the least likely to say they are fairly knowledgeable (46 percent, vs. 56 percent of Gen Xers, 61 percent of Baby Boomers and 57 percent of seniors.

 

Consequently, High Net Worth Millennials are the most optimistic about their financial futures, no doubt because they feel they have more of their work and investment years ahead of them. Nearly seven-in-ten (69 percent) said they expect their financial situation to be stronger one year from now. In comparison 58 percent of Baby Boomers and 57 percent of seniors are as optimistic.