One of the great things about young people is their optimism, the confidence that everything is going to work out. Sometimes, though, that can get them into trouble, like behind the wheel of a car. Or as an investor.
A new survey found millennials were more positive about the future than their parents when it came to investments. They also think themselves far more knowledgeable about how to manage money, which, as anyone will tell you, might translate into behavior that leads to bad financial outcomes.
Securian Financial Group did find similarities between boomers and millennials: Both are saving for retirement with a similar mix of investments. The St. Paul, Minn.-based insurance company surveyed 957 boomers (age 51 to 69) and 1,040 millennials (age 23 to 38) who invested outside their workplace 401(k) plan. Boomers needed to make $75,000 or more to be included in the online survey, while millennials needed to make $50,000 or more.
The future looks far brighter to millennials. More than 70% said they expected a bull market for stocks in the next one to three years, while boomers were split 50-50 between bull and bear. More young people think they’ve got investing pretty much figured out: About 42% said they are “very knowledgeable about investments,” compared with 17% of boomers.