Millennials still aren't investing for the long term

Only 32% of millennials plan to to buy and hold investments for the long term, finds a BMO Wealth Management report. That compares to 43% of gen X and 44% of boomers.

The 2008 financial crisis occurred just as millennials were starting to take on more financial responsibility, leaving them more cautious and less secure about financial matters, the report says. Meanwhile, boomers have had strong average returns, preparing them to ride out the ups and downs of the market.

“Biases can lead to flawed investment decisions,” says Chris Buttigieg, director, Wealth Institute, BMO Wealth Management. “Understanding how they arise from your background and life experiences can help you make better investment decisions to achieve your financial goals.”

Financial goals for each generation

The report also looked at the top investment goals for each generation: more than half cite retirement as their top financial goal. Almost one-third (32%) of millennials say that saving for retirement is important. That compares to 63% of boomers and 62% of gen X. Short-term goals, such as saving for a vacation (29%) and saving for a home upgrade or purchase (27%) were the next highest cited by millennials.

Read the full report.

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