Millennials are warming up to stocks.
In a recent survey, U.S. Trust, Bank of America Private Wealth Management asked 892 high-net-worth and ultra-high-net-worth individuals (with at least $3 million in investable assets, excluding their primary residence) nationwide about their chosen methods to building wealth and accomplishing milestones.
Millennials spent the past year changing their asset allocation. Though this cohort continues to have the lowest allocation in stocks versus Gen X, boomers and the silent generation, millennials slashed their cash holdings from 47 percent in 2017 to 21 percent in 2018 and practically doubled their stock allocation from 25 percent to 46 percent.
Millennials also reported earmarking 17 percent to alternatives and other non-traditional investments such as private equity (41 percent), tangible assets (39 percent), private debt (34 percent), hedge funds (33 percent) and venture capital (31 percent).
In general, high-net-worth individuals own or are looking to possess tangible assets. Respondents named residential investment real estate (63 percent), commercial property (44 percent), oil and gas properties (29 percent), farmland (24 percent) and timberland (21 percent) as currently owned assets.
U.S. Trust says the findings point to “notable shifts in the importance of having the right plan.” Two-thirds of overall respondents in the survey said they have a plan for protecting their wealth, but U.S. Trust says many don’t know how to use it.