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Are millennials making a big mistake by not investing enough of their retirement funds in stocks? Well, someone over at the Motley Fool seems to think so and today we're going to tell you what we think about their (the Motley Fool) opinion.
It turns out that Millennials are pretty good at saving money. However, according to some people they are not saving at in the right way or at least they are not deploying the money correctly. According to a recent Wells Fargo survey only 59 percent of Millennials in the stock market was the best place to invest.
Yes according the fine people over at Wells Fargo, Blackrock, JP Morgan, Fidelity, Vanguard and American Funds all the Millennials are terribly wrong.
Imagine that.
Probably has something to do with the fact that Millennials have watched their parents lose something like 50 percent of their retirement savings not once, but twice in their lifetime.
Younger Gen Xers like myself, have witnessed this phenomenon firsthand. I entered the workforce as a full time employee in May of 1999 and was actually selling stocks and mutual funds during both the dotcom meltdown of the early 2000s and the financial crisis in 2008.
Those are the sort of moments that leave a not so attractive scar on your brain (not to get too preachy). I for one, completely lost faith in the stock market. Not that I don't think there's money to be made there, but I changed my view of how money will be made in the market. I learned that you don't trust institutions and investment bankers to package products that without full knowledge of what exactly it is that they're packaging.
It seems to me that many folks who are fortunate to have jobs with considerable expendable income seem to be horse collared by the investment gurus who never even discuss life insurance benefits for even a small percentage of their funds. Is it because they reap a much larger financial benefit from managing stock portfolios compared to the commission earned on a life insurance policy?
Hi Dan,
Maybe just maybe we have plans to discuss this in quite intimate detail in the future. Stay tuned.