Content area
Full Text
They're not so different from their parents
Investors in their 20s and 30s, the so-called millennial generation, are not rebelling against traditional investment approaches advocated by their parents. The vast majority are not turning to friends and peers in their social networks for investment guidance. Contrary to these and other stereotypes about them, millennial investors aren't entirely different from those of their parents' generation, according to a new survey by Merrill Lynch Private Banking and Investment Group.
"Today's young adults want to work with wealth managers who can help them devise strategies that are open, transparent, adaptive and ongoing, and that align to their life goals and values," the survey says.
Conducted nationwide in February by Phoenix Marketing International, the Young High-Net- Worth Insights Survey reveals goals, behaviors and concerns of 153 investors ages 18 to 35 with investable assets of $1 million or greater. Survey participants include those who inherited much of their wealth and those who acquired it through entrepreneurial ventures or lucrative professions. All data were tested for statistical significance at a 95 percent confidence level, the Merrill Lynch group says.
"What we found is a classic perception versus reality scenario," says Michael Liersch, Ph.D., director of behavioral finance for Merrill Lynch Wealth Management. "Clearly there are important differences between this generation and its predecessors - every generation has distinguishing characteristics born of its historical moments. However, our findings portray a younger generation that is ambitious, focused on the future, and that has a strong sense of responsibility to family, community and society. These wealthy millennials are savvy, independent and skeptical; they value expertise, question everything and intend to maintain control of their financial destiny, but admittedly lack a high level of knowledge about investing."
Investment styles and objectives
In the survey, 83 percent of wealthy young investors polled feel they somewhat or fully understand their parents' approach to investing, with many of them saying that their...