The CFA Institute and the FINRA Investor Education Foundation recently released study findings designed to debunk common assumptions about millennial investors.
The effort determined, among other revelations, the majority of millennials lack confidence in financial decision-making and show little interest in robo-advisors. They also prefer to work face to face with a financial professional, and millennial investors and non-investors expect to retire at the standard age of 65.
“This study dismisses many of the assumptions that are commonly held about millennials and why many of them are not investing,” Gerri Walsh, FINRA Foundation president, said. “These findings help us better understand the needs and wants of millennials to further enhance investor education efforts that will engage millennials in the financial markets.”
Survey organizers said while income and debt are important, 39 percent of millennials without taxable investment accounts state that not having enough knowledge about investing is also a significant barrier. Additionally, only 21 percent of non-investing millennials and millennials with only retirement accounts are very or extremely confident about making investment decisions. The figure increases to 47 percent for millennials with taxable accounts.
“Millennials are expected to inherit more than $40 trillion in the coming decades,” Bjorn Forfang, deputy CEO of CFA Institute, said. “By providing insights into investment preferences and concerns, this research can help financial professionals engage and better serve the needs of the next generation of investors. Investment professionals who take time to demonstrate that client interests are paramount can expect to earn the trust of millennial clients.”