Millennial Investing Habits

 

People those who born between the periods of 1980 – 1990 are found to be a unique breed. They are present in the large group and they have the impact on the economy. The all have the similar saving and the investing habits. Now we will look at the millennial investing and the saving habits:

  1. Top priority to the retirement saving is not given

Most of the millennial are not in the mindset of saving money for the retirement. They are having more commitments in the family. According to the survey conducted by the 18th annual Transamerica retirement survey, 45 percentages of the millennials are involved in saving money for their retirement and the remaining 55 percentage are busy in paying off their debt.

  1. Risk averse

They will be recalling the loss in stock market in the period of 2008 and 2009.They might remember their friends, who had lost all the money in the stock market. Therefore this will make them to be cautious to invest in the stock markets. They can make money by investing in  the automated trading platform, find out more details here.

  1. Expectation of early retirement

The research study says that the millennials are not interested to work after the old age. Most of them are willing to get retirement before the retirement period.

  1. Desire to live longer

They are not only expecting the retirement before the old age but also to live longer than the other generation. They have more desire to live up to the age of 100 years.

  1. They have some catching up to do

If they want the early retirement and to live longer, they have to do some work to save money for the future after retirement. Wealth to the income ratio of them is found to be 40 percent. It shows that the net worth of their annual income is only 40 percent.

  1. Socially responsible investing matters

They are having interest in the socially responsible investment which represents the social and the environmental good. Number of millennials to invest in this has increased to 86 percentage.

  1. Interested in the simple investment

Naturally they would like to invest in the option which is not having any risks. They will be driven towards the mutual funds due to its less expense ratio. The individual index movement can be monitored. Advantages of the new exchange trading funds are taken by the millennials.

Conclusion

It concludes that the millennials are not doing wrong. They are boosting their savings. They should take the benefits of tax free growth on their investments.

 

 

 

 

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