There is a wide divergence between the risk tolerance of Baby Boomers and Generation X investors, with the Gen X investor far more willing to take a chance.

According to Spectrem’s Ezine Baby Boomers vs. Gen X, Gen X investors are more likely than the average investor to be willing to take a significant investment risk in order to earn a high return on the investment. The Baby Boomers, on the other hand,  are less likely to take a significant risk in hopes of getting a higher return.

Among all investors, 37 percent said they are willing to take significant investment risk in exchange for the possibility of a higher return. But 66 percent of Gen X males with a net worth under $1 million said they would do so, and 59 percent of Gen X males with a net worth over $1 million said they would endorse the risk.

In comparison, only 35 percent of Baby Boomers with a net worth of under $1 million would do so, and 47 percent of those with a net worth over $1 million would take the risk.

The percentages are similar among females. Sixty percent of Gen X females with a net worth over $1 million were willing to consider the risks, while only 28 percent of Baby Boomer females in the same wealth segment would do so. Forty percent of Gen X females with a net worth under $1 million would take the risk, while only 22 percent of Baby boomers in that wealth segment said they would go for it.

 Risk is not a determining factor for Gen X investors in selecting an investment. While 91 percent of all investors said “level of risk associated with investments’’ was a factor in selecting an investment product, only 72 percent of Gen X females and 86 percent of Gen X males agreed that risk was a factor. Baby Boomers, however, were more interested in the risk level, with 95 of females and 92 percent of males saying the level of risk was a factor in choosing an investment.

 

There is a wide divergence between the risk tolerance of Baby Boomers and Generation X investors, with the Gen X investor far more willing to take a chance.According to Spectrem’s Ezine Baby Boomers vs. Gen X, Gen X investors are more likely than the average investor to be willing to take a significant investment risk in order to earn a high return on the investment. The Baby Boomers, on the other hand, are less likely to take a significant risk in hopes of getting a higher return.Among all investors, 37 percent said they are willing to take significant investment risk in exchange for the possibility of a higher return. But 66 percent of Gen X males with a net worth under $1 million said they would do so, and 59 percent of Gen X males with a net worth over $1 million said they would endorse the risk.In comparison, only 35 percent of Baby Boomers with a net worth of under $1 million would do so, and 47 percent of those with a net worth over $1 million would take the risk.The percentages are similar among females. Sixty percent of Gen X females with a net worth over $1 million were willing to consider the risks, while only 28 percent of Baby Boomer females in the same wealth segment would do so. Forty percent of Gen X females with a net worth under $1 million would take the risk, while only 22 percent of Baby boomers in that wealth segment said they would go for it. Risk is not a determining factor for Gen X investors in selecting an investment. While 91 percent of all investors said “level of risk associated with investments’’ was a factor in selecting an investment product, only 72 percent of Gen X females and 86 percent of Gen X males agreed that risk was a factor. Baby Boomers, however, were more interested in the risk level, with 95 of females and 92 percent of males saying the level of risk was a factor in choosing an investment.