The Potential Impact of Millennials on Your Investment Strategy

Financial Planning Investment Strategy Retirement Planning February 15, 2017 Author: Woody Derricks

The transfer of wealth from Baby Boomers to Millennials has already begun. According to Boston College’s Center on Wealth and Philanthropy, it is estimated that $58.1 trillion will be exchanging hands between 2007 and 2061. With that transfer, attitudes toward investing and wealth management could change considerably. To help keep your own investment strategy in line and on track, it’s important to understand how Millennials might impact the global marketplace – one dollar at a time.

The Millennial Generation could invest two ways.

It’s likely that a portion of the Millennial population could invest much like the Baby Boomers, with lifestyle factors such as upbringing and career status influencing their comfort levels in how they invest their money. A substantial portion could shun traditional investing strategies, though, with views about the world that vary dramatically from their parents.

Based on the 2016 Cone Communications Millennial Employee Engagement Study, Corporate Social Responsibility (CSR) can be an important factor when Millennials are deciding where to work – with 64% reporting that they wouldn’t take a job if the company didn’t have strong CSR practices. This socially responsible mindset could become increasingly valuable to investors in the form of something called “impact investing.”

What is impact investing?

Impact investing is the process of investing money into organizations, companies, and funds in hopes of making a social or environmental impact. Impact investments are often devoted to sectors such as renewable energy, conservation, and sustainable agriculture. Impact investing can also involve investment in developing markets, where access to basic needs is still trying to be met.

The term “impact investing” was developed in 2007, but socially responsible investing, or SRI, has been around since the ‘70s. It is a growing trend, though, with a market totaling more than $8 trillion with over one thousand funds, according to The Forum for Sustainable and Responsible Investment (US SIF) Foundation’s 2016 Report on Sustainable and Responsible Investing Trends in the United States.

What changes should I make in my investment approach based on Millennials?

Even though Millennials may be transforming the landscape of investment opportunities, changing your strategy is completely up to you and your goals. While impact investing may have appeal, it’s important to ask yourself a couple of things before revamping your investment plan.

What are your investment goals?

A benefit of the impact-investment market’s expansion is that it offers more flexibility to investors. You could completely change your investment strategy to make it socially responsible, or you could simply dedicate a portion of it to certain causes. The main thing to keep in mind is that you will want your strategy to match your goals – regardless of your chosen investments.

What is your risk tolerance?

While impact investments might help you feel good about where your money is allocated, don’t forget that all investments come with risk. Make sure that your investment portfolio matches the timeframe of your goals – as well as your risk tolerance.

What’s the bottom line?

Look at the way Millennials are affecting the financial market as a good thing; impact investing is opening up many opportunities for diversification that didn’t exist even five years ago. If you aren’t interested in it, though, then you don’t need to do anything – at least for now. Who knows what impact investing will look like in five years, or ten! Contact us today to see if impact investing is right for you and your portfolio.


The opinions voiced in this material are for informational purposes only and are not intended to provide specific advice to any individual.  Consult your legal, tax, and financial advisors regarding your specific financial situation.

Investing may involve risk including loss of principal.  Investing in international investments, especially those of developing markets, may carry additional risk such as currency changes and political instability.  Investing in small and medium-sized companies may carry more risk than investing in larger firms.  No strategy guarantees performance or protects against a loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.


As a Registered Investment Advisor (RIA), Partnership Wealth Management is committed to providing our clients with financial planning and wealth management services to help them work towards their financial goals. At Partnership Wealth Management, we have a long history of working with the LGBT community. Among the many services we offer are financial planning and estate planning strategies for gay and lesbian couples. Financial planning is an important part of preparing for the future; contact us today to get started: