Millennials are notably more conservative investors compared to Baby Boomers, found a new report released by BMO Wealth Management Nov. 7.
The report also found that Millennials are less likely to buy and hold investments for the long term (32 per cent) compared to Generation-Xers (43 per cent) and Boomers (44 per cent). More Millennials also said they would put money aside and decide later what to do with it (31 per cent) versus 22 per cent for Generation-Xers and Boomers.
Financial crisis of 2007-2008
“The financial crisis of 2007-2008 occurred just as Millennials were starting to take on more financial responsibility, leaving them more cautious and less secure about their financial matters. Baby Boomers, however, have had strong average returns, preparing them to ride out the ups and downs of the market,” observed BMO Wealth Management in an announcement.
“Biases can lead to flawed investment decisions...Understanding how they arise from your background and life experiences can help you make better investment decisions to achieve your financial goals," says Chris Buttigieg, Director, Wealth Institute, BMO Wealth Management.