Millennials Embrace Upstart Financial Brands
Tarik Ancrum, 27, began saving for retirement when he was 21 years old. He has a handful of go-to finance blogs and books, dabbles in the stock market and invests in an employer-sponsored 401(k) plan. As a personal-finance enthusiast who advises financial advisers, Mr. Ancrum may be more immersed in finance than others his age, but he’s certainly not alone. He represents the growing segment of millennials who are taking charge of their money early on. “We just want to know and be in control of our own future,” said Mr. Ancrum. “You’re never sure what can happen.”
After coming of age in the recession, facing a tough job market and being burdened with heavy student debt, many millennials are distrustful of big banks and traditional financial advisers. They’re relying instead on their own research and user-friendly robo-advisers like Betterment, Wealthfront and Acorns, which have more modest management fees and no or low minimums.
“We’re a generation that’s come of age in a world of algorithms, big data and automated analysis,” said Nicholas Roach, 31, who uses Betterment and Scottrade and has a 401(k) plan. “It only makes sense our investments are a part of that culture, too.”
