Millennials and Money: Why Are They So Bad At Saving

Editor: Philip Ragner | Tactical Investor

Millennials and Money

Crowd Psychology dictates that if you focus on the tree, you will forget that the tree is part of a forest and in doing so you will miss the bigger picture. For example, George Soros is behind the surge in fake stories, the massive Anti-Trump riots and the funding of a plethora of revolutions that seek to change the existing regime. Having the ability to cross analyse multiple factors with an open mind provides you with a much clearer picture of what to expect from the financial markets. On that note, we think you might find the following story of interest

The stock market crash story is getting boring and annoying to a large degree. Since 2009, there has been a constant drumbeat of the market is going to crash stories. In 2009, many experts felt that the market had rallied too strongly and that it needed to pull back strongly before moving higher up.

They were calling for 15%-20% correction. Ten years later and most of them are still waiting for this so-called strong correction or crash. A stock market crash is a possibility but the possibility is not the same thing as certainty, and this is what seems to elude most of the naysayers. One day they will get it right as even a broken clock is correct twice a day. In the interim waiting for this stock market crash has cost these experts a fortune, both in lost capital gains and actual booked losses if they shorted this market. Worst Stock Market Crash of our lifetime; is this a possibility?

Millennials and Money & Average Networth

Millennials are the largest living generation, (even surpassing Baby Boomers), with a population of 79.8 million in 2016, according to Pew Research. Another survey, the 2015 American Community Survey, found that income stayed relatively flat between the ages of 25-35, which could account for Millennials’ struggling finances. In fact, Millennials’ starting salaries are approximately 20 per cent less than Baby Boomers made at that age (adjusted). And as far as net worth, the average Millennial has a net worth of $10,400. The Balance

Millennials and Money: Average Income

Millennials, who will soon take the reins from baby boomers as America’s largest living adult generation, face a growing epidemic of income inequality and limited economic mobility.

According to recent IRS data, more than 55 per cent of adults ages 18 to 35 made under $25,000 annually. Just 9.5 per cent earned more than $75,000. Though the younger people in the 18-26 set tend to work part-time and service jobs, more than 80 per cent of these young millennials earned less than $25,000 per year.

Looking further back, a Young Invincibles’ analysis of Federal Reserve data shows that millennials’ net worth is only half what baby boomers held at the same age. Today’s millennials also earn 20 per cent less in constant dollars than 25-34-year-olds in 1989, when the demographic was populated by the youngest baby boomers.

A 2017 study by researchers at Harvard University, Stanford University and the University of California at Berkeley put the data into a bigger long-term perspective. They found that absolute economic mobility, or the ability for children to earn more than their parents, has dropped by more than 40 per cent since the 1940s. Bank Rate

Millennials and Money: 66% of millennials think they will be ‘wealthy

“More than other generations, millennials believe they can become wealthy someday,” MagnifyMoney finds in a 2019 survey that asks 1,000 Americans about their views on wealth. Sixty-six per cent of millennials (ages 22-37) thinks they’ll become wealthy, compared to 49% of Gen Xers (ages 38-53) and 25% of baby boomers (ages 54-72).

The different perspectives make sense. “Baby boomers are in the phase of their life where they either have already retired or are nearing the end of their career,” MagnifyMoney explains. “They know their potential for wealth building is slowing down.” full story