Employee Benefit Advisers is out with an article titled, “Millennials Are Making A Costly Investment Mistake”. In a study conducted by Bankrate.com, nearly 1 in 3 Millennials (18 to 37-year-olds) believe that “investing” in cash instruments is the best place to invest for the long-term (>10 years). This compares to 21% for older generations, which is only slightly better.

Greg McBride, Chief Financial Analyst at Bankrate.com believes that the millennial generation was scared (scarred?) by their experiences through the Great Financial Crisis. The Millenial generation is in a tough financial situation, as wage growth has been muted, student loan debt is escalating, as are home prices, etc. Saving for retirement isn’t their number one priority.

Furthermore, we are putting too much faith in the ability of individuals to handle the funding, managing, and disbursing of a retirement fund. Why does anyone believe that the “average Joe” is capable of this responsibility.  We require our professional electricians, plumbers, carpenters, etc. to be trained and licensed. Most recent graduates will not have taken any investment class in either high school or college. Managing one’s retirement is not an innate behavior.