Beginner investors are overwhelmed and feeling anxious, according to a new study of what’s keeping workers awake at night.
Health care, 401k accounts and student loans are top sources of stress for millennials in particular, although they’re confident in the markets, according to digital investment platform Rubicoin.
“American investors are stressed about day-to-day finances but are confident in long-term wealth generation,” according to the New York-based company. “It’s no coincidence the top issues being debated in Washington D.C. are the top causes of respondents’ financial anxiety.”
The survey found:
- 80 percent of beginner millennial investors feel the burden of financial anxiety;
- 68 percent of women cite healthcare costs causing the most stress;
- 70 percent of millennial investors expect returns exceeding the S&P 500;
“Millennials are confident in the U.S. stock market to provide a substantial return, but are extremely anxious about their personal debts and expenses, ranging from healthcare to credit cards to student debt,” Emmet Savage, CEO of Rubicoin, said in a statement. “It’s important for young investors to manage and pay-down those debts while simultaneously pursuing smart investment opportunities.”
Washington D.C. Creating Investor Anxiety
Almost half of all investors cite mounting healthcare expenses and bills (23.5 percent) and a lack of retirement savings (22.6 percent) to be the two biggest contributors of financial anxiousness.
For millennials, student loan debt, credit cards and healthcare expenses all measured equally as causes for “extreme” amounts of stress.
Healthcare and Emergency Savings Concern Women
A lack of emergency savings and healthcare expenses are factors causing millennial women to stress the most, which remain consistent with popular beliefs of millennials not saving enough for an emergency and women having to pay more for health insurance over-time.
Gen X women cite healthcare expenses and a lack of retirement savings to cause the most anxiety, followed closely by a lack of emergency savings. Women of both generations are primarily stressed about healthcare expenses and anxiety only increases the older women get alongside a lack of retirement savings. Being ill-prepared for retirement is another, if not the most, concerning fact regarding all Americans, not just women.
Millennials Remain Confident
For a generation that was shell-shocked by the Great Recession, millennial confidence in the stock market is high (89 percent), likely due to strong economic recovery, record high markets and access to investment opportunity.
These factors, coupled with the accessibility and popularity of online investment resources, have broken the barriers for first-timer investors who may have felt sidelined in the past, according to the company.
“This mobile-first generation has fully recovered from the Recession and is taking advantage of a strong economy coupled with record high markets,” Savage said. “It’s a dual effort between skilled financiers and the tech community to create platforms, and furthermore a culture, where all generations can foster the confidence to be successful during times of economic growth and not carry the burden of financial anxiety.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
