Millennials are Holding Too Much Cash

Adam Uncategorized 2 Comments

The exact wrong people are holding waaaay too much cash. If you have 30+ years of investing runway (all millennials) and you are holding a lot of cash for no reason, you are doing yourself a great disservice. Start a simple, set it and forget it monthly process and don’t hurt your future self.


Comments 2

  1. JayCeezy

    This chart is quite interesting, and not at all what I would have guessed. Some quick thoughts…
    1) BofA Merrill Lynch is struggling, still trying to find a way to make old-model sales commission (and corporate) profits at a time when investor interest/engagement has led to an indexing and dollar-cost-averaging environment. I just helped some older family members move their BofA/ML investments to Vanguard, and ran into quite a bit of resistance; BofA/ML did not want that money to leave, because they know it is never coming back.
    2) I was surprised at the 20% cash allocation for ‘older’ (ahem!:-)) investors, and it doesn’t seem too different than the 25% millennial allocation. Am wondering if the ’00 and ’08 bear markets, and the lack of fundamental change to that ‘fragile’ system, is keeping everybody cautious.
    3) taking into consideration that the Equity markets have tripled in the last 10 years, the 46% allocation for ‘older’ investors isn’t surprising, as they might have a larger principal amount to begin with.

    P.S. – hope all is well with you Adam and happy to see you getting the feel to blog after a hopefully enjoyable hiatus!
    3) the 17% ‘Alternatives’ category for millennials is interesting too; Bitcoin or the like?

    1. Post

      Ya, I need to get back into the blog. My e-commerce business has become pretty large and I pretty much made the decision to push all in on that with my time and energy.

      I have no idea what the “alternatives” could possibly be that reach 17%.

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