As an investment writer my ultimate goal in life is to help people learn how to best achieve financial independence, so they can achieve their dreams and maximize happiness out of life.
A big part of that includes planning for retirement, which is why I was shocked and horrified to learn that my own generations, Millenials, are making truly terrible capital allocation decisions with their savings.
I fully understand that Millenials, burdened as they are are by large student loans, can struggle with maintaining a decent savings rate. However, what this study found was that off the savings they do have, Millenials as a group, have an absolutely TERRIBLE capital allocation.
Specifically, their investment into stocks (equities) way too low, while their holdings of bonds (fixed income) and cash is way too high. Similarly they have huge exposure to alternative investments, which generally means high cost investments into things like closed end funds, which are designed to enrich management at the expense of investors.