Why millennials should care about multi-asset investing

Millennials, those born between 1981 and 19961, have grown up in a world with distinctly different financial challenges compared to older generations. Nowadays, younger people need to think very differently about how to manage their money.

Trends around spending

Trends around saving

Why millennials need to start thinking about investing…


One in three people born today are now predicted to live beyond 10011, which means that even increasing contributions to workplace pensions isn’t necessarily enough to ensure a comfortable retirement.

 


Given the prolonged backdrop of low interest rates in the UK12 and the US13, relying on cash accounts alone is unlikely to provide millennials with rich financial rewards.

 

Multi-asset investing could be a good solution for millennials who are seeking consistent returns and a steady income stream from global investment markets.

 

 

Why multi-asset investing?


 

Combine the most attractive qualities of multiple asset classes, which investors can use to target the financial outcomes they value most.

 

 

 

Investors’ route to diversification can be:

  • Less complicated
  • Less time-consuming
  • Less expensive

…by using the strategy in one of two ways:

 

As a one-stop solution

 

 

 

 

As a core holding to which an investor can add single asset class bricks to benefit from other opportunities or specific themes

 

 

A flexible approach to potentially benefit from evolving market conditions

In an ever-changing macroeconomic environment, being able to achieve their investment goals is becoming more of a distant dream for investors of all ages…

…but a flexible allocation in a multi-asset strategy could deliver the sustainable returns needed to make it a reality.

Sources:

1 Michael Dimock, Defining generations: Where Millennials end and Generation Z begins, Pew Research Center, 17 January 2019 2 Higher Education funding in England: past, present and options for the future, Institute for Fiscal Studies, 5 July 2017

3 Millennial money statistics, Finder UK, 15 March 2018

4 Study by Cassandra France, 2018, commissioned by Snap Inc

5 Economic understanding, financial culture and digitalisation in adolescents and young adults, GfK, 25 July 2018

6 Nicola Borzi, So the Italians go into debt for the degree, Valori, 29 August 2019

7 Rupert Jones, Don't believe the hype about millennials and money, data suggests, The Guardian, 11 May 2019 8 Youth savings and their interest in innovative investments, Cafedelabourse, 18 April 2017

9 Generation Y likes to enjoy now and save later, GfK, 28 April 2016

10 Benedetta Gandolfi, To learn how to save, look at how millennials do it, Wall Street Italia, 25 March 2019 11 What are your chances of living to 100?, Office for National Statistics, 14 January 2016 12 Szu Ping Chan, Bank of England forecasts low interest rates for longer, BBC News, 19 September 2019 13 The Fed cuts rates for the first time in over a decade, The Economist, 1 August 2019

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