High Net Worth Millennial investors are nothing if not gung-ho about investing, confident in their investment acumen, and upbeat about their financial futures, according to a Spectrem report.
In the study High Net Worth Millennials, nearly six-in-ten (59 percent) High Net Worth Millennials with a net worth greater than $1 million report they enjoy investing and that it is something they do not want to give up. This is the highest percentage across all age levels. In comparison, seniors were the next demographic most likely to say they enjoyed investing (57 percent) while baby boomers were the least enthusiastic (49 percent).
Similarly, HNW Millennials were the most likely across all age groups to want to be actively involved in the day-to-day management of their investments (58 percent).
These young investors, with more of their work lives ahead of them, are also the most positive about their financial futures. Nearly seven-in-ten HNW Millennials with a net worth greater than $1 million (69 percent) expect their personal financial situation to be stronger in a year. Those with less than $1 million are similarly optimistic (70 percent).
Their more positive outlook appears to have inspired more aggressive investment strategies. Nearly half of HNW Millennials with greater than $1 million net worth (49 percent) are willing to take significant investment risk on a portion of their investments to earn a high return. In comparison, only 38 percent of both baby boomers and seniors are willing to take such risk (at 55 percent, HNW Gen Xers surveyed were the most likely to be willing to take a significant investment risk).
While investment risk is important to a significant majority of HNW Millennials when selecting an investment (76 percent), this concern increases with age, with more than nine-in-ten baby boomers and seniors ranking risk the primary factor in selecting an investment.
Seven-in-ten HNW Millennials next consider investment diversity and track record, followed by the tax implications and the reputation of the company where the investment is made.
Across all age groups, HNW Millennials are the most likely to consider the social responsibility of an investor, 49 percent, vs. 43 percent of Gen Xers, 34 percent of baby boomers and 27 percent of seniors.
For more information, see High Net Worth Millennials.