Millennials Offer Opportunity to Provide Investing Help
While a survey finds the majority of Millennials are investors, the top three reasons some Millennials do not invest are they do not have enough money to do so, they say they do not know how to properly invest, and they do not know the first thing about investing.
The majority, nearly seven in 10, of Millennials are investors, according to a survey of 2,000 Millennials, sponsored by Ally Financial and conducted by OnePoll. Of these Millennial investors, 85% have made a profit, averaging $2,527.17.
Eighty-five percent of Millennials say they are not too young to invest. They believe that the right age to start investing is 28. Among the Millennials who have never invested, 83% said that if they were to do so, they would want to invest in a company that is ethical and socially responsible.
However, Millennials say that in order to invest, they would need a salary of more than $35,000 and at least $3,659 in their savings account. And, 20% of Millennials say they are so overwhelmed by the idea of investing that they haven’t even looked into it at all.
Asked what they would do with $100,000 if it were suddenly handed to them, Millennials’ top answer is to pay off debt and invest.
The top three sectors that Millennials invest in are technology (58%), energy (37%) and health care (34%). The top three reasons some Millennials do not invest are they do not have enough money to do so (53%), they say they do not know how to properly invest (42%), and they do not know the first thing about investing (39%).
“Regardless of how much you have to invest, the key is to just get started,” says Dave Dusseault, executive director for Ally Invest. “A small amount with a set of exchange-traded funds that offer some diversity is often a good place to start. The Millennial generation has plenty of motivation for getting invested. They know it’s one of the surest ways to overcome debt and build financial security over time.”