Are Gen Y'ers really that skittish when it comes to betting on stocks? Not really,
reports the
Wall Street Journal.
A survey by
MFS Investment Management, picked up by the pub, showed that 40 percent of 18- to 30- year-olds say they will never -- never -- feel
comfortable investing in the stock market. But what they say doesn't necessarily correlate to what they actually do.
According to an analysis of 401(k) data by the Investment Company Institute (
ICI) and the Employee
Benefit Research Institute (
EBRI), 20-something investors today reportedly hold more stocks in their 401(k) accounts than 20-something investors did a decade ago.
Specifically, more than 80 percent of Gen Y investors funneled upward of 60 percent of their 401(k) account assets into stocks in 2010, the latest figures available, according to the pub In 2000, less than 70 percent of the youngest investors held such high portions of their plan assets in equities.
The article concludes that regulations passed enabling plan sponsors to automatically enroll new participants in their 401(k) plans and target-date funds equities allocations in its early stage cycle are key factors in Gen Y'ers big bets on stocks.  
Edited by:
HFD
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