Are you invested in Millennials? Dismiss them at your own peril. In sheer numbers alone, Millennials have surpassed Baby Boomers as the most prolific generation yet.
Millennials are stereotypically portrayed in the press as lazy, coddled and entitled, but a new Spectrem Group Perspective report, The Investing Habits of Millenials, finds a generation that is optimistic and actively planning for their financial futures. And while 38 percent of Millionaire Millennials identify themselves as self-directed investors who make all of their own investment decisions, the majority works in some capacity with a financial advisor. The highest percentage (38 percent) report that they consult with a financial advisor for a specific purpose or life event, such as asset allocation or planning for retirement.
They do not kid themselves on their level of financial knowledge, the Spectrem Group Perspective finds. Fifty-four percent of Millionaire Millennials consider themselves “fairy knowledgeable, but still have a great deal to learn.” In comparison, four-in-ten non-Millionaire Millennials believe they are fairly knowledgeable. These Millennials investors are much more likely than their wealthier counterparts to self-report that they are “not very knowledgeable.”
Not surprisingly, more Millionaire Millennials (25 percent) than non-Millionaires (17 percent) consider themselves “very knowledgeable.”
Nearly two-thirds (64 percent) of Millionaire Millennials enjoy investing and would not want to give it up. Half (51 percent) like to be actively involved in the day-to-day management of their investments.
Among non-Millionaires, almost half (48 percent) report they enjoy investing, but just over one-third (36 percent) like to be actively involved in the day-to-day management of their portfolio, an indication perhaps of their lack of confidence in their investment acumen in comparison with their Millionaire peers.
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