This ‘clueless’ generation needs your help

This ‘clueless’ generation needs your help

This ‘clueless’ generation needs your help

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.”
  • Fraser McDowell CFP 2015-12-11 2:57:40 PM
    The disturbing part is that only 21% say they find it difficult to time the market. Should we assume then that almost 80% of "20 somethings" feel they CAN time the market?
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  • Ken MacCoy, CHS 2015-12-11 10:54:32 PM
    The majority of clients, not just millennial clients, need help with their investments.

    Investors need the assistance of a qualified advisor to put in place a long-term investment strategy. But, even then, the returns they want (or expect) are not guaranteed.

    Plus, unless you have a 'crystal ball' you will find it virtually impossible to time the market.

    The best solution: adhere to a long term plan with regular deposits into a diversified portfolio of quality investments.
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  • Brad Jardine 2015-12-15 11:17:47 AM
    Sometimes it's tough to argue certain logic with the Internet generation(s) Had a millennial call to say he wants to do his own research and but his own quality stocks with dividends-for his 41k RSP account-This after a compound rate of return of over 10% for 6 years, including this year -he's up 10%, most markets down. I wished him luck and told him to transfer out the RESP account too. Anyone want to guess what his profession is? It's usually one or the other. Can't fight irrational behavior.
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