BMO survey highlights how the generations view investments
All generations recognize the importance of saving and investing for retirement and other life events but their approaches vary according to a new survey from BMO Wealth Management.
All generations agreed that using a financial advisor was the best option for investing and the portfolio approach is favoured.
Millennials are more open to using robo-advisors than older groups but only 10% of younger investors say they use them (compared to 9% of Gen-Xers, 5% of Boomers).
Women are less likely to invest in individual stocks (19%) than men (25%) while 16% invest in CD accounts compared to 12% of men.
Millennial investors say their biggest discomfort comes from a lack of understanding about how the market works (21% compared to 12% of Gen-Xers, 10% of Boomers) and younger investors are also more likely to lack knowledge of investing options (16% compared to 13% of Gen-Xers, 7% of Boomers).
Saving vs. investing
The poll found that around 1 in 5 investors across the generations are opting for saving rather than investing, perhaps due to a lack of understanding or confidence in investments.
Older investors are more likely to buy and hold investments for the long term (43% of Boomers, 42% of Gen-Xers, 32% of Millennials).
Around a third of respondents said they prefer managed investment funds and ETFs to other options. Bonds are chosen by 15% of all age groups.
Retirement is without doubt the main event that all generations are investing for (two thirds of Boomers, Gen-Xers; almost half of millennials) but millennials are more likely to want to buy a home or upgrade their existing one (26%) than Gen-Xers (14%) or Boomers (6%).
All age groups want to build up funds for an emergency and for short-term goals such as a vacation.
Interestingly, Gen-Xers were the least likely of the three demographics to cite leaving an inheritance (9%) compared to Boomers (13%) or Millennials (10%).
All generations agreed that using a financial advisor was the best option for investing and the portfolio approach is favoured.
Millennials are more open to using robo-advisors than older groups but only 10% of younger investors say they use them (compared to 9% of Gen-Xers, 5% of Boomers).
Women are less likely to invest in individual stocks (19%) than men (25%) while 16% invest in CD accounts compared to 12% of men.
Millennial investors say their biggest discomfort comes from a lack of understanding about how the market works (21% compared to 12% of Gen-Xers, 10% of Boomers) and younger investors are also more likely to lack knowledge of investing options (16% compared to 13% of Gen-Xers, 7% of Boomers).
Saving vs. investing
The poll found that around 1 in 5 investors across the generations are opting for saving rather than investing, perhaps due to a lack of understanding or confidence in investments.
Older investors are more likely to buy and hold investments for the long term (43% of Boomers, 42% of Gen-Xers, 32% of Millennials).
Around a third of respondents said they prefer managed investment funds and ETFs to other options. Bonds are chosen by 15% of all age groups.
Retirement is without doubt the main event that all generations are investing for (two thirds of Boomers, Gen-Xers; almost half of millennials) but millennials are more likely to want to buy a home or upgrade their existing one (26%) than Gen-Xers (14%) or Boomers (6%).
All age groups want to build up funds for an emergency and for short-term goals such as a vacation.
Interestingly, Gen-Xers were the least likely of the three demographics to cite leaving an inheritance (9%) compared to Boomers (13%) or Millennials (10%).
