Affluent millennials in the US can learn from baby boomers when it comes to financial decision-making and management, according to a report by SEI.
The study, which explores Americans with an average $27.7m in investible assets, unveiled that 57% of wealthy millennials feel most confident getting advice from family compared to 6% of baby boomers.
On the other hand, 58% of baby boomers feel most confident getting advice from a wealth advisor for making financial decisions, compared to only 8% of millennials.
SEI Private Wealth Management managing director Michael Farrell said: “It’s not surprising that millennials rely primarily on trusted family members after experiencing the post-2007 economy in their early years of financial independence.
“Millennials need to learn to trust and verify professional advice and therefore, understand the difference between biased and unbiased advice in order to successfully navigate complex financial decisions.”
Wealthy millennials and baby boomers also have contrasting views regarding their focus on short- versus long-term goals, the study said.
In spite of having the longest investment horizon, millennials are least likely to focus on long-term financial goals, the study found, with only 28% committed to long-term goals and about 38% concerned about short-term performance.
On the contrary, 52% of baby boomers are focused on long-term goals, while only 12% of them are concerned about short-term performance.
Wealthy millennials and baby boomers also have different goals and priorities, the study adds. In relation to setting investment goals, 71% of baby boomers cited a comfortable retirement as one of their top three priorities, while 49% of millennials cited having a better lifestyle for themselves and their families as a top-three priority.
When asked what factors hold them back from reaching their financial goals, both baby boomers (37%) and millennial respondents (41%) cited a lack of confidence in their investment skills as the top reason.
Also, only 29% of millennials and 27% of baby boomers take full responsibility acting on their personal investment plan through a do-it-yourself approach.
“Wealthy baby boomers understand their personal wealth management limitations and the value of trusted advice – particularly given the influx of new financial technology and solutions.
“Meanwhile, wealthy millennials lack experience and, often, the guidance of an advisor. It is important for individuals, regardless of their generation, to find a trusted source for data, support and education that can be applied to their own financial situation,” Farrell said.