Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Dow Stock Market Dow Trend Forecast Current State - 22nd Apr 21
Gold Rebounds Amid Positive Economic Reports - 22nd Apr 21
China's record first quarter fuels strong expansion in 2021 - 22nd Apr 21
Gold Price Next Key Level - 22nd Apr 21
Here's What to Look For When Hiring a Real Estate Agent - 22nd Apr 21
Ethereum EIP 1559 and Raven Coin - 21st Apr 21
Gold, USDX: The Board is Set, the Pieces are Moving - 21st Apr 21
World Economies Need to Find a Lot More COPPER! - 21st Apr 21
DogeCoin CRASH! Time to Start Mining BOODGIE Coin! Crypto Mania 2021 - 21st Apr 21
Pausing Stocks and Gold Fireworks - 21st Apr 21
Precious Metals and Miners Start of New Longer-Term Bullish Trend - P2 - 21st Apr 21
Looking For A Mortgage Broker? Here Is How To Hire One - 21st Apr 21
Amazon AMZN Stock PRIMEDAY SALE! Trend Analysis - 20th Apr 21
Stock Market Sentiment Speaks: You May Not Believe My 2021 Targets - 20th Apr 21
Stock Market Phase Two Projection - 20th Apr 21
Are Precious Metals & Miners Starting A New Longer-Term Bullish Trend? - 20th Apr 21
Inflation: First the Gain, Then the Pain… - 20th Apr 21
8 Stock Market Indicators in 1: Here's the Message of the Panic/Euphoria Model - 19th Apr 21
Gold - You Can Win a Battle, but Still Lose the War - 19th Apr 21
Will Interest Rates Rally Further Push Gold Price Down? - 19th Apr 21
Gold Fireworks Doubt the Official Inflation Story - 19th Apr 21
YuanPay Team Discuss The Process Of Crypto Diversification - 19th Apr 21
Central Banks May Ramp Up Gold Buying - 18th Apr 21
How to Get Rid of Driveway Weeds With Just WATER! 6 Months later NO Weeds, Ultimate Killer! - 18th Apr 21
State of the European Markets - DAX, FTSE, CAC, AEX, SMI, IBEX 35, S&P/MIB, Euro Stoxx 50, RTS - 18th Apr 21
Einvestment Fund: What You Need To Know About Investments - 18th Apr 21
Google Alphabet (GOOG) AI Deep Mind Stock Trend Analysis - 17th Apr 21
Stocks and Bonds Inflationary Slingshot - 17th Apr 21
Best Smartphone Selfie Stick Tripod Review by ATUMTEK Works with Samsung Galaxy and Iphone - 17th Apr 21
How to Give Budgie's First Bath | Easy Budgie Bathing and Water Training with Lettuce - 17th Apr 21
Record-breaking Decrease in New Passenger Vehicle Sale in Europe - 17th Apr 21
US Stocks Climb A “Wall Of Worry” To New Highs - 16th Apr 21
Gold’s Singular Role - 16th Apr 21
See what Anatomy of a Bursting Market Bubble looks like - 16th Apr 21
Many Stock Market Sectors Are Primed For Another Breakout Rally – Are You? - 16th Apr 21
What Skyrocketing US Home Prices Say About Inflation - 16th Apr 21
Still a Bullish Fever in Stocks? - 16th Apr 21
Trying to Buy Coinbase Stock on IPO Day - Institutional Investors Freeze out Retail Investors - 15th Apr 21
Stocks or Gold – Which Is in the Catbird Seat? - 15th Apr 21
Time For A Stock Market Melt-Up - 15th Apr 21
Stocks Bull Market Progression Now Shows Base Metal Strength - 15th Apr 21
AI Tech Stocks Buy Ratings, Levels and Valuations - 14th Apr 21
Easy 10% to 15% Overclock for 5600x, 5900x, 5950x Using AMD Ryzen Master Precision Boost Overdrive - 14th Apr 21
The Current Cannabis Sector Rally Is Pointing To Another Breakout - 14th Apr 21
U.S. Dollar Junk Bond Market The Easiest Money in History - 14th Apr 21
The SPY Is Nearing Resistance @ $410… What Is Next? - 14th Apr 21
The Curious Stock Market Staircase Rally - 14th Apr 21
Stocks are Heating Up - 14th Apr 21
Two Methods in Calculating For R&D Tax Credits - 14th Apr 21
Stock Market Minor Correction Due - 13th Apr 21
How to Feed Budgies Cucumbers - Best Vegetables Feeding for the First Time, Parakeet Care UK - 13th Apr 21
Biggest Inflation Threat in 40 Years Looms over Markets - 13th Apr 21
How to Get Rich with the Pareto Distribution - Tesco Example - 13th Apr 21
Litecoin and Bitcoin-Which Is Better? - 13th Apr 21
The Major Advantages Of Getting Your PhD Online - 12th Apr 21
Covid-19 Pandemic Current State for UK, US, Europe, Brazil Vaccinations vs Lockdown's Third Wave - 12th Apr 21
Why These Stock Market Indicators Should Grab Your Full Attention - 12th Apr 21
Rising Debt Means a Weaker US Dollar - 12th Apr 21
Another Gold Stocks Upleg - 12th Apr 21
AMD The ZEN Tech Stock - 12th Apr 21
Overclockers UK Build Quality - Why Glue Fan to CPU Heat sink Instead of Using Supplied Clips? - 12th Apr 21 -
What are the Key Capabilities You Should Look for in Fleet Management Software? - 12th Apr 21
What Is Bitcoin Gold? - 12th Apr 21
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Are Millennials Better Investors Than Boomers and Gen-Xers?

Stock-Markets / Investing 2017 Sep 10, 2017 - 06:43 AM GMT

By: HAA

Stock-Markets

Shannara Johnson : Poor, spoiled, disadvantaged Millennials.

The myth of the underdog youngster has been going around in the media for years.

He’s the poor schmuck who at age 32 still hunkers down in Mom and Dad’s basement because his post-graduate education only fetches him a position as PhD burger flipper at the Scottish restaurant chain which shall not be named.


Marriage and homeownership? Not for this guy. According to the myth, he’ll be lucky if he can dig himself out from under his student loan debt one day and afford an apartment that isn’t populated with stoner roommates and cockroaches.

However, when you take a closer look at the Legg-Mason 2017 Global Investment Survey, an in-depth annual study of investing styles, it paints quite a different picture.

Baltimore-based Legg-Mason, by the way, is a global asset management company that has conducted its surveys for the past five years, aiming to better understand investors’ hopes, fears, and motivations.

Here are some of the amazing results.

Millennials Aren’t Half As Bad As Their Reputation

The first surprise when analyzing the survey is that Millennials (18–35 years old) seem to be sophisticated investors who actually have a leg up on the older generations, the Gen-Xers (36–52) and Baby Boomers (53–71).

Only 14% of Millennials say that don’t have any savings or investments, compared to 19% of Boomers.

The generation that might have suffered the most in the financial crash of 2008 are the Gen-Xers, a cohort that generational researcher Neil Howe compares to the overlooked and unloved middle child: a full 25% of them say they don’t have any savings or investments.

Asked about their investment approach in the past three years, fewer Millennials and Boomers—11% and 9%, respectively—admit to fear-based investing than Gen-Xers with 13%.

Work, Life, and Retirement Goals Achieved? Check

Millennials also seem more accomplished overall than the older generations when it comes to life goals.

More Gen-Xers (50%) and Boomers (46%) feel that they have yet to achieve their top goal of earning “as much money as I can,” whereas only 43% of Millennials stated the same.

Of course, making a lot of money may not even be one of Millennials’ top priorities.

In a subsequent question that asked which work life goals they had already achieved, 48% of Millennials said, “to work just enough to have a nice lifestyle”—a goal that didn’t even make the top five on Gen-Xers’ and Boomers’ priority lists.

When looking at Millennials’ home life goals, it becomes obvious that the stereotype of the young slacker is far from correct.

51% of Millennials found it important to “build an inheritance for my children/heirs.” 57% said they’d already achieved their goal of living on their own, 49% had gotten married, and 48% had started a family.

An astonishing 45% of Millennials already own a home.

Millennials’ attitude toward money is characterized by a frugality we don’t see in their older counterparts. As a result, getting out of debt is one of the retirement goals 37% of them have already achieved. Only 26% of Gen-Xers and 36% of Boomers claim to be so lucky.

Equally amazing: more Millennials (24%) than Gen-Xers (15%) say they’ve achieved early retirement.

Moreover, 31% of them say they live abroad (only 19% of Gen-Xers and 7% of Boomers do), and 33% of them say they own a vacation home. Only 21% of Gen-Xers and 15% of Boomers can afford that kind of luxury.

Millennials: The Most Conservative Investors with the Highest Returns

Most Millennials say they’re “very optimistic” about their investments for the coming year, whereas most Gen-Xers and Boomers state that they’re cautiously optimistic.

On the other hand, a full 57% of Millennials confess that their saving and investment decisions are strongly influenced by the 2008 crash, while a whopping 56% of Boomers state their decisions are “not at all” influenced by the crash.

The question is whether the Boomers’ carefree attitude represents forward thinking or dangerous amnesia.

Another one of the big surprises of the Legg-Mason survey is that Millennials—the youngest and purportedly least experienced group—report the highest returns (9.22%) on their income-producing investments, exceeding their expectations of 9.18%.

Gen-Xers sought more modest returns of 7.02% and got 8.14%.

On the other hand, Boomers’ real returns proved disappointing: they sought an 8.81% yield, but only received 5.66%.

What’s interesting is that at the same time, 85% Millennials describe their overall risk tolerance in long-term investing as “very conservative” or “somewhat conservative,” whereas only 77% of Gen-Xers and 74% of Boomers do.

With 24%, Boomers showed the highest number of “somewhat aggressive” investment behavior.

Are Millennials Savvier Than Everyone Else?

So how come that Millennials, though more risk-averse than their older counterparts, get the highest returns?

One of the answers might be international diversification. Millennials have it, Boomers don’t. Gen-Xers lie somewhere in the middle.

According to the survey, 88% of Millennials hold foreign investments, and only 33% hold investments inside their home country. The Boomers’ numbers are reversed—83% invest at home and only 40% abroad.

Asked about recent investment decisions they are pleased with, 18% of Millennials and 14% of Gen-Xers cite “investing abroad.” Only 1% of Boomers said the same.

30% of Boomers consider “global uncertainty” as a major barrier to international investing, but only 18% of Millennials and 24% of Gen-Xers think so.

Both Millennials and Gen-Xers think that the UK, Japan, and China represent the best places to invest over the next 12 months; Millennials also frequently name Europe.

On the other hand, a full 51% of Boomers say they don’t know where the best foreign investment opportunities lie… an uncertainty that is shared by only 15% of Millennials and 32% of Gen-Xers.

Gen-Xers and Boomers: Way Behind in Preparing for Retirement

How disadvantaged Gen-Xers have been in their work and home life becomes clear when we compare personal income. While Gen-Xers should currently be in their prime earning years, their median income ($71,875) actually lags that of Millennials ($76,945).

Boomers are on average the poorest with a median income of $41,850, although this might be explained by the fact that many of them are already retired.

At $100,674, Millennials have saved only about $10,000 less for their retirement via Defined Contribution (DC) plans than their older brethren, the GenXers. Boomers, who are already entering retirement, are the worst off with only $125,358.

Millennials also look much better prepared in terms of asset allocation. Unlike Gen-Xers and Boomers, their portfolios are much more diversified across all asset classes—with a relatively even distribution between cash (25%), equities (20%), fixed income (17%), investment real estate (14%), and non-traditional investments (13%).

With 11%, Millennials also own the highest percentage of physical gold. (Learn more about precious metals investing in this free report.) GenXers come in second with a 7% allocation to gold and silver.

Boomers, overall, seem to be the least diversified investors: 77% of their assets are in cash, equities, and fixed income, with a meager 8% in investment real estate, 4% in non-traditional investments, and just 2% in precious metals.

That means without a sufficient amount of “crisis insurance,” when the next recession or stock market collapse hits, our oldest generation will also be the most vulnerable.

Millennials, for all the abuse they take in the media and the narratives of the older generations, are by and large a much more put-together generation than we give them credit for. Consider that the next time you read what a bunch of good-for-nothings they are.

Get a Free Ebook on Precious Metals Investing

Everyone should have some crisis insurance in the form of physical gold and silver. But before you buy, make sure to do your homework first.

The informative ebook, Investing in Precious Metals 101, tells you which type of gold to buy and which to stay away from… how to avoid common mistakes inexperienced investors make… the best storage options… why you should insist on allocated gold accounts… and more. Click here to get your free copy now.

© 2017 Copyright Hard Assets Alliance - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable,


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules