Report shows younger generation’s risk aversity
Millennials are no different from previous generations in their keenness to build wealth but they may lack a willingness to take some risks.
A report from Bankrate.com suggests that this risk aversity could be a costly mistake when they retire especially as it means many are opting for cash investments rather than stocks and bonds.
Among all generations surveyed, stocks were the favoured investment asset (32%) with cash second (24%) and real estate third (22%).
Gold and other precious metals and bonds scored 9% and 8% respectively while cryptocurrencies were the top investment choice of just 2%.
While stocks are the top choice for Gen X (33%), Boomers (38%), and the Silent Generation (44%), for millennials cash is king with 30% saying it is their top investment choice.
“For investment horizons of longer than 10 years, the stock market is an entirely appropriate investment,” says Greg McBride, CFA, Bankrate chief financial analyst. “Cash is not, and especially if you’re not seeking out the most competitive returns.”
The annual survey has in the past 3 years shown a propensity for real estate assets so this year’s shift to stocks breaks the trend.
