Managed investments are the top choice no matter what age

BMO survey highlights how the generations view investments

Managed investments are the top choice no matter what age
Steve Randall
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%).

LATEST NEWS