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The Shocking Fact That Will Haunt Millenials In The Coming Decades

Posted On July 1, 2017 11:09 pm
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As an investment writer my ultimate goal in life is to help people learn how to best achieve financial independence, so they can achieve their dreams and maximize happiness out of life.

A big part of that includes planning for retirement, which is why I was shocked and horrified to learn that my own generations, Millenials, are making truly terrible capital allocation decisions with their savings.

 

 

I fully understand that Millenials, burdened as they are are by large student loans, can struggle with maintaining a decent savings rate. However, what this study found was that off the savings they do have, Millenials as a group, have an absolutely TERRIBLE capital allocation.

Specifically, their investment into stocks (equities) way too low, while their holdings of bonds (fixed income) and cash is way too high. Similarly they have huge exposure to alternative investments, which generally means high cost investments into things like closed end funds, which are designed to enrich management at the expense of investors.

Why are Millenials so averse to investing in stocks and choosing to go with low or no return choices like cash? Well several reasons.

About author

Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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