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UBS Study: Millennials Invest Like They Came Through World War II

By    |   Monday, 10 February 2014 01:52 PM

Millennials are rarely described as "markedly conservative," but when it comes to investing, that's exactly what they are, according to a new study from UBS.

People between the ages of 21 and 36 are often described as "lazy, entitled and narcissistic." But UBS says its study shatters stereotypes about this budding generation of investors.

Millennials are strikingly similar to the World War II generation, who came of age during the Great Depression, the study showed. Millennials are actually more prone to be savers than investors.

Editor’s Note:
5 Shocking Reasons the Dow Will Hit 60,000

According to the study, millennials are extremely fiscally conservative. Only 5 percent of participants classified their risk tolerance as "aggressive." UBS found that millennials are skeptical of long-term investing, and they are holding more cash than any other generation.

"Millennials have kind of a cash-under-the-mattress thinking about saving," Emily Pachuta, one of the study's architects, told CNNMoney.

"They feel anxious and fearful of the market," she added.

The majority believes the key to success is living frugally and, most importantly, working hard, which is what they plan to do.

Millennials have been scarred by their view of the market volatility in recent years and their personal experiences, such as the tough job market. On top of that, they have witnessed first-hand the struggles of their parents, who have suffered plunging retirement savings and home values.

"This has had a significant impact on their mindsets," the UBS report explained.

Still, millennials are not prone to self-direction when it comes to their finances. Only 9 percent of the survey's participants made their last key financial decision without consulting someone. Millennials are more likely than any other generation to turn to someone they know, such as family or friends, for advice, the report says.

As far as millennials being shortsighted and self-centered, UBS's research also shatters these myths.

Millennials do a lot of worrying and most of the concern is about their distant future and their loved ones.

After worries about their retirement, millennials second biggest concern is their parents' financial situation and taking responsibility for them as they age.

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

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Millennials are rarely described as "markedly conservative," but when it comes to investing, that's exactly what they are, according to a new study from UBS.
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Monday, 10 February 2014 01:52 PM
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