Rich millennials aren’t investing their savings. At least that’s what the findings of a recent Merrill Edge report suggest.
The report, which surveyed individuals with investable assets between $50,000 and $250,000 – or with investable assets between $20,000 and $50,000 and an annual income of at least $50,000 – found that two-thirds of affluent millennials plan to rely on their own savings account 20 years from now instead of investments.
So rather than put their hard-earned savings into the stock market, these wealthy young people are hoarding the funds in barely-no-interest savings accounts.
What is driving young investors away from the stock market? “Throughout the Great Recession millennials witnessed their parents and grandparents suffer and struggle with Social Security uncertainty and whether it will be enough,” says David Poole, head of Merrill Edge’s advisory and client services in Jacksonville, Florida.