Millennials are those born in the 1980s and up to the mid-1990s. They found themselves hitting the job market as a major financial crisis hit the world and major changes were being made to the world of work; changes over which they had very little control but which affected their generation most of all. While many paint this generation with doom and gloom because of this – I think they’re special and that they were born to be investors. Here’s why:

Risk Aversion

When the whole world collapses around you when you jump into the job market, it tends to leave you feeling a little cautious about life in general. That is expressed as “risk aversion” in millennials which means that they’re not comfortable with large risks. Some will allege this makes for a poor investor but it doesn’t.

What it does mean is that millennials are going to be more sensible as to where they put their money in investments. For example, they’re more likely to go into property investment (a safe asset class) than to go chasing a fortune in complex derivative transactions (or junk bonds as they became known). Good investors manager risk, millennials are very capable of managing risk.

Investment Experience

Some say millennials don’t invest at the moment. I’d say that they do invest but they often choose to invest in experiences over things. They’re willing to sacrifice everything for that perfect moment on a sun strewn beach in a remote country or to see their favourite bands hit the stage.

Millennials are soon going to connect the idea that investing in a more traditional manner will enable them to invest even more into the experiences they seek. Many millennials are just beginning to have families too and that’s going to change how they invest for experiences as well.

They Need Money Now

There’s no doubt that cash is often tight for millennials, they’re looking for investments which will help them build up their cash supply in the here and now. That means they’re not looking to tie up their cash in a 20 year bond which they can never get their hands on. They’re looking for investments like property where gains appreciate quickly and rents rise at a faster rate than mortgage repayments. To millennials the asset class is a vital part of making an investment choice.

They’ll Really Need Money In The Future

Retirement ages are rising because the millennial generation is predicted to live beyond 100 years. Unfortunately, governments and employers can no longer see people retire in their 60s when they’re going to live to 100 or more. That doesn’t mean millennials won’t want to retire in their 60s – it just means they’re going to need to find new ways to fund those retirements. That means investing in a future which is in their control and not in the control of their boss or their government.

Millennials are born investors. Some may not realize it yet but their approach to risk, previous experiences of investment and financial needs show that they are.

If you’re a millennial and you’re wondering how to make your investments work for you;  why not talk to me about investing in property?