Young adults seek out ‘safe’ investments over stocks

Young adults seek out ‘safe’ investments over stocks

While young adults are typically cast as being more aggressive investors than older individuals, a new study reveals that the economy may be changing their attitudes and behaviors.

New research from the Spectrum Group, which consults in various areas of investments, finance marketing and wealth management, indicates that young investors – those ages 40 or younger – are more wary of investing in stocks than baby boomers and older adults. For example, 28 percent of respondents in the younger demographic said they invest in gold during periods of market volatility, while another 27 percent prefer low-risk money market funds. In contrast, only 12 percent of those in their 50s and 60s preferred money market funds over more risky vehicles.

Only 13 percent of those polled said they would invest in dividend stocks, compared with 38 percent of individuals in their 60s. The number of consumers who said they prefer to invest in accounts insured by the Federal Deposit Insurance Corp. was split nearly evenly among all age brackets, with 16 percent of those under 40 and 17 percent of individuals in their 50s and 60s leaning on these investments.

The research and consulting firm cites the economy and lingering effects of the recession as contributing factors to young adults' reticence toward taking on significant risk.

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By |2012-08-24T16:36:49+00:00August 24th, 2012|Uncategorized|0 Comments