Money & Career
Millennials & The Stock Market
10/2/2018 1:37:09 PM
Millennials and the Market


Several recent statistics indicate that Millennials, those born between 1981 and 1996, aren’t investing in the stock market. The percentages vary from study to study, but all agree that more than half of the Millennials population shy away from putting their dollars to work for them on Wall Street. The children of the stock-loving Baby Boomers who helped fuel the thriving market in the 1990s, haven’t yet developed a solid relationship with the market like their parents did. 

While many will be quick to point to financial illiteracy as the main culprit, it isn’t completely to blame for this trend. High levels of student loan debt, fear of risky markets, and lack of spare income are all cited. The rocky relationship between Millennials and the stock market not only poses a threat to their future, post-employment nest egg, but it could also be detrimental to the long-term health of the market, which could find itself deprived of much-needed cash flow if the roughly 75 million Millennials in the United States don’t take a more aggressive approach to investment. 

"Of course, the decision to invest is an acknowledgement that it comes with certain risks,” says Denise Rau, CFP, Certified Financial Planner and owner of Rau Financial Group. "But for Millennials, the larger risk lies in their avoidance of the stock market. Saving money in any capacity is good but investing puts your dollars to work for you as opposed to sitting idle in a low interest account.” 

There’s no doubt Millennials have had some lessons in the school of hard knocks. Many were scarred by the 2008 market collapse and some older Millennials remember the burst of the internet stock bubble at the turn of the century. But with jobs more plentiful and wages edging higher, Millennials who commit to healthy investing can put their portfolios back on the right track. 

Some experts believe that life’s financial hurdles will eventually lure Millennials into the stock market. As they get married, start families, buy their first home, and start realizing the need to save for the future, they will become more active. "Investing, in many ways, is a part of growing up,” says Rau. 

Seeking out the right help can make all the difference when it comes to Millennials’ investment portfolio. By assessing their income, evaluating their current situation, and determining their risk level, a financial planner can help set them on a path that is not only within their comfort zone, but also one that leads to success. 

"No one strategy fits everyone, which is why every client gets our undivided attention – from planning to execution to follow-up. We take a proactive approach to helping you develop a strategy to address your personal financial goals and objectives,” says Rau. 

Investment advice offered through GWM Advisors, dba Rau Financial Group, a registered investment advisor. GWM Advisors and Rau Financial Group are separate entities from LPL Financial. To begin planning for your financial future, visit www.raufinancialgroup.com or call 337-480-3835.
Posted by: Taylor Trahan Henry | Submit comment | Tell a friend

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