Millionaire Millennial investors are more enthusiastic about investing than their older counterparts.
While a majority of Millionaire Millennials consider themselves only fairly knowledgeable about financial products and investments, they greatly enjoy investing and would not want to give it up, according to a new Spectrem Group report, The Investing Habits of Millennials.
Nearly-two-thirds of Millennials with a net worth of at least $1 million report that they enjoy investing. This is a greater level of enthusiasm than their older counterparts, including Gen Xers (55 percent), Baby Boomers (52 percent) and the World War II generation (54 percent).
Indeed, Millionaire Millennials rank “smart investing” as the primary factor in their wealth creation. That’s above such factors as hard work or education.
In selecting an investment, what factors do these investors consider to be the most important?
For Millionaire Millennials, it’s the level of risk that most determines whether or not they will select a specific investment. Risk is something Millennial investors can comparatively afford due to their youth and having more time than their older counterparts to wait out any dips in their investments. Nearly six-in-ten indicate they are willing to take a significant investment risk on a portion of their investments to earn a high return, compared with 42 percent of Baby Boomers and 38 percent of seniors.
Three-fourths of Millionaire Millennials are next most focused on the tax implications of an investment, the Spectrem Group report finds. Nearly two-thirds (64 percent) consider the diversity of their investments, followed by the reputation of the company where the investment is made (61 percent).
This brand recognition is not as important to these young adults as it is to previous generations. Three-fourths of Gen Xers report they consider a company’s reputation when selecting an investment, as do 82 percent of Baby Boomers and seniors.
One criteria when selecting an investment is more important to Millionaire Millennials than their older counterparts, and that is the social responsibility of their investments. Nearly four-in-ten take this factor into account, compared with 37 percent of Gen Xers, 28 percent of Baby Boomers (a surprise considering that Earth Day was founded on the Baby Boomers’ watch) and 22 percent of seniors.
The social responsibility of an investment is an even higher priority for non-Millionaire investors (40 percent).
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.