Are Millennials Overconfident in their 401K Investing Skills?

Less of a focus on selfies, and more of a focus on 401(k)s.

Less of a focus on selfies, and more of a focus on 401(k)s.

They may be more brash than brains, but give ‘em points for optimism, at least when compared to their hippie-dippy parents and grandparents.

Seventy-one percent of millennial investors predict a bull market in the next one to three years, compared to 50 percent of baby boomer investors. And in an eyebrow-raising finding, 42 percent of millennial investors say they are very knowledgeable about investments, compared to 17 percent of boomers.

These are just two of the key differences uncovered in a study from Securian Financial Group of millennial and baby boomer investors.

“Confidence is a trait younger generations of Americans have never possessed in short supply,” David Kuplic, chief investment officer with Securian-subsidiary Advantus Capital Management, said in a statement. “Their natural self-assurance, along with the market growth most have experienced since coming of investment age after the financial crisis, could explain the gap between millennials and boomers, who have experienced many more highs and lows.”

The survey did find similarities shared by millennial and boomer investors, but differences were frequent and noteworthy.

Millennials More Confident Across the Board

An Investment Style Surprise

After Financial Advisors, Very Different Sources for Advice

Millennials More Concerned About Market Volatility

“The different levels of concern and reactions to market volatility could again speak to the experiences of the two generations,” Kuplic added. “Volatility is a relatively new experience for most millennials, while boomers have ‘been there, done that’ before.”

 

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