From Gambling Gary to Steady Eddie: A Millennial's Guide to Investment Personas
Like generations before and generations to come, we millennials have had a remarkable financial ride. From the ashes of the great recession, we’ve slowly integrated into the existing financial world (some more willingly than others) while new, digital rails are being built.
Like the quick drawing artist at the fair, I’ve created caricatures of familiar millennial investors I’ve encountered. Their traits may be exaggerated and distorted to the point of being satirical, but there’s some truth in each of the written depictions. In reality, most of us are some combination of these comical characters.
Do any of these resonate with you?
Gamblin’ Gary:
Good Ole Gary, he’ll bet on anything. When he spots two kids playing a pickup basketball game — he’ll put $100 on the kid in the fresh Jordans. Investing and gambling are the same to Gary. Nothing excites him more than dice coming to a halt on the felt of a craps table, except taking outsized risks with his retirement account.
Like most gamblers, tales of jackpot wins keep Gary on the prowl for that elusive ten-bagger. When he wins, he wins big. But following every hot streak is an epic blowup, a nuke that sets his retirement account back several years.
Braggin’ Barb:
If you meet Barb at a networking event, sit next to her at the bar, or just stop to say hello, she’ll let you know about her investing prowess. For some reason, she only talks about her big winners. Is she the real Wizard of Wall Street? Nope. Barb isn’t lying, per se; she’s omitting — and who can blame her? Talking about wins is more fun than dwelling on losses. Be careful; if you take Barb’s advice, it might just be her first major miscalculation.
Nervous Nancy:
She has what it takes to be a good investor, but Nancy can’t overcome her fear of losing money. Perhaps it was a bad experience or horror stories of Wall Street gone awry; Nancy can’t bring herself to invest. Instead of ensuring her portfolio aligns with her risk tolerance, she stays out of the markets altogether. Like Gary, gambling and investing are one and the same, and she avoids both at all costs. A little education and some guidance would go a long way in demonstrating the long-term benefits of investing to Nancy.
Procrastinating Pete:
He’s going to invest…next year. And tomorrow, he’s going to start eating healthier too. Pete has good intentions, but follow-through isn’t his forte. He knows the benefits of long-term investing and understands the power of compounding, but he still can’t seem to push himself into action. He’s going to start investing… “soon.”
Short-Sighted Sam:
Poor Sam can’t see a strategy through, no matter how hard he tries. Suffering from shiny object syndrome, Sam’s approach bounces around like a toddler on a sugar high. He implements the “latest and greatest” strategy, only to jump ship as soon as something more radiant catches his wandering eye. His lack of discipline and conviction routinely hurt his investing performance, but he’s always excited about the next big thing.
Meme’n Mikey:
YOLO! Mikey is a social media fiend and can’t help getting in on the action. He’s got a chronic case of FOMO, so he follows the masses wherever they go — even when the sheep head straight for the slaughterhouse.
Steady Eddy:
Snooze fest! Eddy invests for the long term. He meets with his financial advisor several times a year to review his financial plan and adds to his retirement accounts monthly, no matter what the market is doing. Eddy has learned to tune out the noise and doesn’t get too excited or too down — he keeps moving forward. It may not be exciting, but Eddy is steadily progressing toward his long-term objectives.
Do any of these investors seem familiar? Don’t feel bad if you’ve got a little Gary, Barb, or Nancy in you; most of us do. But it’s not too late to be more like Steady Eddy. Consistently adding funds towards your investment goals, tuning out the noise, and staying invested even when it’s hard isn’t exciting — but it’s effective.
Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. I encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from James Vermillion, and all rights are reserved.
