A disturbing percentage of millennials feel completely out of their depth when it comes to their investments.
Close to 70% of millennials invest their money, but the 82% of them - whether they invest their money in the markets or not - say they are clueless about investing, admitting they lack financial knowledge and investing confidence, according to a new CIBC poll.
"While it's good to see that so many millennials recognize the importance of investing to build their net worth over time, our poll clearly shows they need help," said Sarah Widmeyer, managing director and head of wealth advisory services at CIBC. "Their lack of knowledge is making them vulnerable to many common investing mistakes."
Despite their lack of confidence a good portion of Canadians aged 18-34 have investments, with 67% having money in vehicles including stocks, GICs, bonds and mutual funds. But 41% say they don't get the returns they expect, 28% find it hard to develop a long-term investment strategy and 21% say they find it difficult to time the market.
However, this generalization might be a bit overstated.
“It’s definitely not a blanket statement in my opinion,” said Sean Harrell, from Trilogy Wealth Management Inc. “I have some millennial clients who know exactly what they want and are very realistic in their expectations in working with us. Like anyone learning something new they need confidence to ask questions and do research.”