Millennials appear to be a pretty cocky bunch when it comes to investing — though they are inclined to turn to advisors for help, according to a new survey.
They’re confident about the market: 71% of Millennial investors predict a bull market in the next one to three years, compared with 50% of Baby Boomer investors.
They’re also pretty cocky about their investment knowledge: 42% of Millennial investors say they are very knowledgeable about investments, compared with 17% of Boomers. And just 12% of Millennials say they are not very knowledgeable about investments, compared with 25% of Baby Boomers, according to the survey by Securian Financial Group.
Investment Advisors
There was good news for advisors in the survey: two-thirds (65%) of both Millennials and Boomers seek investment advice from financial advisors — the top source cited. The second-most cited source of investment advice for Millennials is family (54%); for Boomers it was news outlets (39%).
Beyond advisors, Millennials are much more likely than boomers to seek advice from:
Market Volatility
That said, more Millennials than Boomers (42% to 29%) expressed high levels of concern about market volatility and its impact on them reaching their retirement goals (49% to 39%). Millennial investors also are more concerned than Boomers about protecting themselves from a volatile market (54% to 43%) and understanding the reasons behind a volatile market (51% to 37%).
They may be more concerned, but Millennials claim that they are far more likely than Boomers to take action (i.e., buy more shares, sell shares, shift shares) during periods of market volatility. Most Boomers — 59% — say their typical reaction to a falling market is to leave their portfolio alone, compared with 37% of Millennials. Similarly, in a rising market, 61% of Boomers say they make no changes to their portfolio, compared with 40% of Millennials.
While $1 million was most frequently cited by both generations as the amount they would need to save to feel confident in retirement, more Millennials (52%) than Boomers (45%) are confident that they’ll reach their savings goal. More Boomers (11%) than Millennials (4%) are not confident that they will reach their goal.
While a plurality of Millennials (39%) and a majority of Boomers (51%) say they are moderate investors — more Millennials (15%) than Boomers (8%) say they are very conservative investors.
The survey sampling may have influenced the results: The minimum annual household income threshold was $75,000 for Baby Boomers (ages 51-69) and $50,000 for Millennials (ages 23-38). Additionally, both generations had to have investments outside of employer-sponsored retirement plans.
They’re confident about the market: 71% of Millennial investors predict a bull market in the next one to three years, compared with 50% of Baby Boomer investors.
They’re also pretty cocky about their investment knowledge: 42% of Millennial investors say they are very knowledgeable about investments, compared with 17% of Boomers. And just 12% of Millennials say they are not very knowledgeable about investments, compared with 25% of Baby Boomers, according to the survey by Securian Financial Group.
Investment Advisors
There was good news for advisors in the survey: two-thirds (65%) of both Millennials and Boomers seek investment advice from financial advisors — the top source cited. The second-most cited source of investment advice for Millennials is family (54%); for Boomers it was news outlets (39%).
Beyond advisors, Millennials are much more likely than boomers to seek advice from:
- money management websites (49% to 29%);
- banks (41% to 15%);
- friends (39% to 18%);
- blogs (25% to 7%); and
- social media (13% to 3%).
Market Volatility
That said, more Millennials than Boomers (42% to 29%) expressed high levels of concern about market volatility and its impact on them reaching their retirement goals (49% to 39%). Millennial investors also are more concerned than Boomers about protecting themselves from a volatile market (54% to 43%) and understanding the reasons behind a volatile market (51% to 37%).
They may be more concerned, but Millennials claim that they are far more likely than Boomers to take action (i.e., buy more shares, sell shares, shift shares) during periods of market volatility. Most Boomers — 59% — say their typical reaction to a falling market is to leave their portfolio alone, compared with 37% of Millennials. Similarly, in a rising market, 61% of Boomers say they make no changes to their portfolio, compared with 40% of Millennials.
While $1 million was most frequently cited by both generations as the amount they would need to save to feel confident in retirement, more Millennials (52%) than Boomers (45%) are confident that they’ll reach their savings goal. More Boomers (11%) than Millennials (4%) are not confident that they will reach their goal.
While a plurality of Millennials (39%) and a majority of Boomers (51%) say they are moderate investors — more Millennials (15%) than Boomers (8%) say they are very conservative investors.
The survey sampling may have influenced the results: The minimum annual household income threshold was $75,000 for Baby Boomers (ages 51-69) and $50,000 for Millennials (ages 23-38). Additionally, both generations had to have investments outside of employer-sponsored retirement plans.
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