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in Living by (21.7k points)
What does struggling with a horrible job market and an economic crisis do for millennials? Apparently, it helps them become better investors. A recent study done by investment management firm SigFig found that millennials are actually better at investing than the generation before them.

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The data found that, overall, millennials paid less for their investments and were more likely to put their money in low-cost electric fund transfers rather than active mutual funds, which baby boomers use more.

SigFig also found that millennials are often smarter with their money. An average 20-something investor trades 23 times per year, whereas an average 60-something investor trades 52 times a year.

What do you think of this new data supporting the younger generation's investment tactics? Do you think millennials are better investors than their parents? Or is their style just different?

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26 Answers

0 votes
by (2.3m points)
some do some dont.
0 votes
by (2.3m points)
This article talks about the average "20 something investor", but doesn't mention if the average 20 something is even investing. I don't think so. I have about a dozen in my family and only one or two are investing.
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by (2.3m points)
no
0 votes
by (2.3m points)
They've been indoctrinated to believe that if they don't have something that someone else does, all they have to do is claim unfairness and some bleeding heart will fight to have someone else fund it for them.
0 votes
by (2.3m points)
I can't speak for everyone, but I'm better than both of my parent. But I have to give some respect to my parents for that, it's because of them and what they went through and their mistakes that I've learned my money practices.
0 votes
by (2.3m points)
half our country doesn't pay income taxes because: they are business owners, children, retired, military, stay at home parents, or unemployed (actual unemployed numbers)
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by (2.3m points)
I'm dubious. When they say 'average 20yr old millennial investor and average 60yr old investor - how many did they poll? Older people usually held the same job through their working years and they 'saved'. Millennials are having to change jobs because of the poor economy.

I've read that people nowdays have very little savings compared to the older generation. Half our country doesn't pay income tax and nearly half are on some form of welfare. So - whose got all that money for investing?
0 votes
by (2.3m points)
Indeed... My River property is partially an inheritance, to which I purchase later, the neighboring surrounding properties as they came available. Now there is a cabin on it, but the cabin has little value as a home, but well worth more then it's cost as a Hunting River Cabin.

My place in the mountains, was land that nobody wanted, which was next to a noisy, dusty, quarry - so I got it for next to nothing... The Quarry closed about 3 years after I purchased my land... which in the last 10 years, has become a beautiful lake, which coincidentally, became some 1/4 mile of lake front off of one corner of my property. I'm not complaining about the prospective value that created.
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by (2.3m points)
Land is a better one, as long as you do not clear it for a house, there is next to no taxes on it. My family has kept most of our land. Years ago no one wanted it, and it would have sold for nothing since it was just farm fields. Now it is next to a vineyard, just down the road from a distillery, and only a 3 minute walk from a beach that is well hidden from others.
0 votes
by (2.3m points)
I'm older... and I invested in empty property ( which never dropped in value), careful selection of stocks, and directly in business start-ups.

It is the people much older then me - who retired 10 years ago - that fell for the "A house is an investment) marketing the government pushed, to promote business for it's banking buddies.

While "Speculation" buying and developing of property, can be fruitful (IE: Donald Trump) - - a house at it's best, is a safe-haven for your money, as the costs of insurance, tax's and maintenance will wash out any profits you might make - and if you borrowed the funds, you are at a negative balance every month you own the property.

Now, if you are a slum lord - - that's a different investment.
0 votes
by (2.3m points)
As I recall, the older generation invested in the housing bubble.
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by (2.3m points)
I have no idea.
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by (2.3m points)
They have been through a major crash ,so they have a little edge.
0 votes
by (2.3m points)
A new survey showed how many "millennials" support socialism. There is no "investing" in a socialist economy.
So if they are "for socialism" and "making investments" they are just "ignorant"...
0 votes
by (2.3m points)
None of the ones I know.
0 votes
by (2.3m points)
I read the article and key, significant details were left out. How did SigFig come up with the claim that millennial are better investors than their parents? Was the 2008 crash and loss in investment funds factored into the calculations of rate of returns over the course of the investees history used as a comparison between the two? Was creating the article a marketing ploy to bring in new customers?

The article is trying to say that ETFs is the new, hot thing to invest into, but then gives no details regarding actual, important information regarding ETFs. Does anyone know the average rate of return for ETFs? Can anyone compare these rates of returns to the average rate of returns of mutual funds?
0 votes
by (2.3m points)
Not that I've seen.
0 votes
by (2.3m points)
That would be my older brother... the hippy half.

I will more then likely have to subsidies his retirement - although, he will get an army pension along with his SS... as well, I already have to help my step mom out now and then, because my dad spent everything on beer and other women.
0 votes
by (2.3m points)
Sort of like how baby boomers are content to draw all the money out of Social Security without any plan of how to preserve benefits for millennials - who is REALLY being selfish?
0 votes
by (2.3m points)
Millennials apparently think the Government is going to take care of them!

Or... they are going to inherit their parents wealth.

Either way... they have it covered - someone else will take care of them.
0 votes
by (2.3m points)
Kids don't know how to be independent of their parents
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by (2.3m points)
Almost everyone reads The Intelligent Investor by Ben Graham, really one of the most important books to read.
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by (2.3m points)
They'd do so much better if they had some of Warren's wisdom! Buffett  Berkshire  Oracle s  Fables  book
0 votes
by (2.3m points)
Perhaps, TESLA ALL THE WAY BABY. But if we are not better investors we've got to think of something because our parents generation has been kind enough to inflate the cost of everything under the sun. They'll probably tax the Sun soon, actually.
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by (2.3m points)
Not at all
0 votes
by (2.3m points)
Depends.
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