Millennials are too conservative in their investment choices, according to a new report from the Wells Fargo Investment Institute. They're holding too much cash and bonds and too little stocks in their investment accounts.
The analysis of 904,000 Wells Fargo Advisors accounts studied the investment allocations among different generations: the silent generation, born between 1928 and 1945; baby boomers (1946-1964); Gen Xers (1965-1981); and millennials (1982-2000).
Every generation held too much cash, and every generation except millennials held too few bonds compared to the average asset allocations of U.S. target date funds reported by Morningstar.
"In general, we have found that generations do not invest all that differently, but perhaps they should," the report notes.
The oldest cohort, however, had too large an equity allocation, which was only slightly true for baby boomers, but Gen Xers, like millennials, held too few stocks.
