W&F Issue 7 2018

Wealth & Finance International - Issue 7 2018 29 However, they are reluctant to actually invest, saying they feel safest keeping most of their savings out of the market (66%)—or, as seen with the 42 percent of millennial homeowners, in real estate. They are spooked by the financial crisis, with 65 percent saying living through that period has made them a more conservative investor. This reluctance to invest is demonstrated by their under-utilisation of investing accounts that could help them build wealth and prepare for retirement: just 40 percent have taken advantage of common workplace retirement accounts like 401(k)s or 403(b)s; only 23 percent have opened an IRA or Roth IRA; 14 percent have a managed account; and a mere 12 percent have a brokerage account. “Millennials have been stuffing their savings under the mattress instead of putting their income to work through strategic investments,” said Bailey. “While this may seem safe, they are putting their goals at risk by keeping cash on hand. While they are young, millennials have time on their side and could be missing an opportunity to grow their savings over a lifetime.” While millennials have lived through one of the worst financial moments in history, they truly have the advantage of time in the market. Balancing near and long-term goals, leveraging debt responsibly, and building a diversified portfolio will help millennials pursue their American Dream. The Millennial American Dream