'Millennial investors are a lot more independent;' Rajo-Miller

Sara Rajo-Miller, Financial Advisor at Miracle Mile Advisors, joined Yahoo Finance Live to discuss the latest trends with millennial investors.
Video transcript
[PLAY MUSIC]
ADAM SHAPIRO: It's time for our retirement segment brought to you by Fidelity Investments. We invite Sara Rajo-Miller, Financial Advisor at Miracle Mile Advisors, to join the stream. And we want to talk about younger people and what to look for in order to invest in retirement. I'm talking about people under 40 years of age. Millennials, even, I'm Gen X so I guess we're talking about it, is it Gen Z that are ahead of Millennials? What are the mistakes or the good things they do at this age?
SARA RAJO-MILLER: Hello, yes, let's see. When we talk about next generation investors, we are usually talking about millennials who are currently between 25 and 40 years old. I think it's really important to note that we love tossing them all together. And there's a huge difference between a 25-year-old who is only a few years away from college and a 40-year-old who may have been saving and investing for more than 10 years.
Right now is an example I'm working with. I give you three 30 year olds. One of them is going through an IPO event in his company. One is just in his first job outside of college working on 401 (k) savings and the other is focused on a real estate investment that he has. So there can be very different situations.
SEANA SMITH: Well, and Sara, I mean, I think millennials often get a bad rap. People compare them to previous generations and say we're not up to date. I'm a millennial. I'm curious to see how it stacks up, how millennials stack up compared to previous generations, and where they were in terms of retirement planning when they were around that age.
SARA RAJO-MILLER: Millennials get a bad rap. I heard everything. And I think from personal experience what I've seen is that millennials actually care about retirement plans. And they're working really hard to build a nest egg. I'll give you a couple of great examples. Millennials, a lot of millennials joined the workforce in 2008. Obviously a terrible time to join the workforce. Not only was it a challenge for them, but many of them saw their parents go through retirement assets that were going down due to the 2008 crisis.
Another big difference I've seen is that millennial investors are much more independent. That may mean they don't expect to be as dependent on social security or pensions as the previous generation. Therefore, they focus more on retirement planning. But even many of them only make their decisions in ways that the previous generation did not. They often delay the decision to get married, have children, and buy a first home. So you make decisions for yourself for a longer period of time.
I think the last big difference is awareness and access to information. I think there is a lot more access to information now than the previous generation. It doesn't matter if it's podcasts, online courses that you can take through a university or something like Kaplan or even Instagram. I had a client last week who told me they saw a real estate investment seminar on TikTok. Well, admittedly this is probably not the best platform, or maybe not the best platform for this particular topic, but I think it's great that there is so much interest and awareness.
ADAM SHAPIRO: I lost the computer for a second, but I would like to thank Sarah Rajo-Miller who is a consultant at Miracle Mile Advisors. And remind everyone that Fidelity Investments brings you our retirement investment trend segment. We'll be right back.
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