Young Money: One-third of Affluent Americans are Gen X/Y
NEW YORK (MainStreet)--The world of wealth is getting younger. Fully one-third (34%) of affluent Americans are now comprised of Gen X and Gen Y, with $100,000 or more in investable assets -- a substantial increase from the 21% mark of 2010, according to Cogent Research.
Baby Boomers continue to represent the largest generation of investors at 44% of all affluent Americans. Meanwhile, the so-called Silent Generation aged 67 and over is contracting. These older investors currently comprise just 21% of the affluent population, down from one-third in 2010.
Capturing a new generation of investors will require some diligence on the part of book-building financial advisors, as 80% of emerging investors (ages 21 to 29) and 68% of early career investors (ages 30 to 39) say they "make decisions and manage money on my own" according to the Hearts & Wallets Investor Quantitative Panel, an annual poll of more than 5,400 U.S. households.
The Young High Net Worth Insights Survey by Merrill Lynch finds that less than half (45%) of wealthy Millennials believe that their level of knowledge regarding financial and investment matters is greater than that of their parents. Fewer still (19%) would describe themselves as having a high level of knowledge regarding financial matters, and one-quarter admit they have very little knowledge."Our findings portray a younger generation that is ambitious, focused on the future, and that has a strong sense of responsibility to family, community and society," says Michael Liersch, Ph.D., director of behavioral finance for Merrill Lynch. These wealthy Millennials are savvy, independent and skeptical; they value expertise, question everything and intend to maintain control of their financial destiny, but admittedly lack a high level of knowledge about investing." Developing a relationship with these young investors through their parents may also be a challenge for advisors. The Merrill Lynch survey found that less than half (46%) of younger investors discuss financial matters with their parents. --Written by Hal M. Bundrick for MainStreet
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV