It used to be said that young people had no experience with adversity and market turmoil. That all changed after 9/11.
The majority of these young people of the Millennial or Echo generation are now young investors and they have lived through two major market upheavals since.
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This has made them much more conservative and less trusting than their Boomer counterparts.
A survey of 1000 Echo investors by Accenture showed that they also are the most determined to learn how to invest and to pass wealth along to their families.
This is a huge challenge for financial advisors wishing to capture the largest transfer of wealth in history.
Survey respondents age 21 – 30 are also a viable market audience for advisors. They are more likely to want tried and true investment strategies than respondents age 46 – 70.
Forty-three percent described themselves as conservative compared to 31% of Boomers. They also were four times more likely to consult other sources before taking the advice of an investment advisor.
Almost half said they spend a lot of time doing their own research before making a major investment decision.
The effect of Echo behavior has been influencing the way things are being done for the last several years.
Researchers confirm that their behaviors and attitudes are not simply a long-term strategic focus for wealth advisors but rather a leading indicator for the need for change in today’s world.
Half of all Boomers are engaged and active in social media and the innovations that draw in the Echo generation will continue to draw in the most valuable demographics of Boomer and Gen-X investors, as well.
A broad brush demographic across these three generations covering ages 18 - 65 is estimated to represent $27 trillion in total assets. They all also share the view that investing is a viable path
toward building wealth and passing on wealth to future generations.