Inside The Plan

Generational Investment Behavior: Millennials

In today’s episode of “Inside the Plan with the 401(k) Brothers”, hosts Bill Bush and Andy Bush, advisors at Horizon Financial Group, continue the ‘Generations Series’ as they  go generation-by-generation and talk about some of the saving habits and what's on the minds of individuals. So, in this second episode of the ‘Generations Series’, they're going to talk about  Millennials and their behavior when it comes to retirement and saving as per surveys and other resources.



Episode Highlights

·       01:24– Andy states that Millennials’ birth years include 1981 to 1996. So that makes these cohorts 25 to 40 or 41 at this point and their size is about 72.1 million which one of the bigger generations.

·       03:46– This Generation had a decade of their formative years, where the market was very volatile and experienced some huge events that created downward movements which led them to be a little more conservative than they needed to be.

·       05:05- The younger side of that generation has more time and some of them may choose to work longer than 65 because of a profession or something they enjoy.

·       07:35– As per the Wells Fargo Advisors survey, 48% of millennials said the stock market is not a good place to grow their retirement savings.

·       10:00– The SHRM study reported that this age group is more likely to ask mentors or for mentors... about 42% ...or, ask for training about 35% than the preceding generation, so they do want to seek some help and inquire and that's good.

·       12:58– Andy says, more than 50% of the working force couldn't sustain a $1,000 emergency expenditure. They don't have the dollars saved up.

·       14:30– This generation has already experienced some 30% + downturns, says Andy.

·       16:30– Bill says, next time we're going to look at not what's termed as the greatest generation, but a pretty darn good generation... must be ours, Gen X.



Three Key Points

1.    Many studies suggest and there's one that's probably pretty prominent couple Fidelity and JP Morgan both has some studies, they say by age 40, you should have already saved three times your salary... and at least six times your salary by age 50.

2.    When we look at our future, we don't look at the possible bad things that could go wrong. We typically think of a good things but there are a lot of bad things that could happen to us personally and it's not to say that we would desire that... we don't desire the bad outcomes, but we do need to be aware that they can happen and not be naive that they could happen and be somewhat prepared.

3.    To all Millennials, as you're raising kids, establishing a home, and other stuff be prepared, you do have to prepare, you're going to have a rainy day somewhere, and more than likely, you're going to and so be prepared for it.



Tweetable Quotes

·       “Morgan Housel says, your perception, growing up kind of controls a lot of your behavior.” – Andy Bush

·       “30% said they will be unable to retire comfortably until the age 70 to 80.” – AndyBush

·       “Millennial workers tend to be receptive to advice.” - Andy Bush

·       “Alot of millennials seek some digital solutions to get their investments and finances in the right order, but they still want that affirmation that they're doing the right thing from a person.” - Andy Bush

·       “This study found that millennials are especially drawn to employers that have a good work-life balance and a flexible schedule.” – Andy Bush


Resources Mentioned

·       Horizon Financial Group - Website

·       Contact Information: Bill Bush Andy Bush

·       Podcast Editing


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