Dan Kadlec

Workers may never regain their appetite for measured risk in the wake of the Great Recession, new research shows.

People have always loved a sure thing. But certainty has commanded a higher premium since the Great Recession. Five years into a recovery—and with stocks having tripled from the bottom—workers overwhelmingly say they prefer investments with a guarantee to those with higher growth potential and the possibility of losing value, new research shows.

Such is the lasting impact of a dramatic market downdraft. The S&P 500 plunged 53% in 2007-2009, among the sharpest declines in history. Housing collapsed as well. Yet the S&P 500 long ago regained all the ground it had lost. Housing has been recovering as well.

Still, in an Allianz poll of workers aged 18 to 55, 78% said they preferred lower certain returns than higher returns with risk. Specifically, they chose a hypothetical product with a 4% annual return and no risk of losing money over a product with an 8% annual return and the risk of losing money in a down market. Guarantees make retirees happy.

This reluctance to embrace risk, or at least the urge to dial it way back, may be appropriate for those on the cusp of retirement. But for the vast majority of workers, reaching retirement security without the superior long-term return of stocks would prove a tall order. Asked what would prevent them from putting new cash into a retirement savings account, 40% cited fear of market uncertainty and another 22% cited today’s low interest rates, suggesting that fixed income is the preferred investment of most workers. Here’s what workers would do with new cash, according to Allianz:

• 39% would invest in a product that caps gains at 10% and limits losses to 10%.
• 19% would invest in a product with 3% growth potential and no risk of loss.
• 19% would invest in a savings account earning little or no interest.
• 12% would hold their extra cash and wait for the market to correct before investing.
• 11% would invest in a product with high growth potential and no protection from loss.

These results jibe with other findings in the poll, including the top two concerns of pre-retirees: fear of not being able to cover day-to-day expenses and outliving their money. These fears drive them to favor low-risk investments. One product line gaining favor is annuities. Some 41% in the poll said purchasing such an insurance product, locking in guaranteed lifetime income, was one of the smartest things they could do when they are five to 10 years away from retiring.

Lifetime income has become a hot topic. With the erosion of traditional pensions, Social Security is the only sure thing that most of today’s workers have in terms of a reliable income stream that will never run out. Against this backdrop, individuals have been more open to annuities and policymakers, asset managers and financial planners have been searching for ways to build annuities into employer-sponsored defined-contribution plans.

Doing so would address what may be our biggest need in the post defined-benefits world and one that workers want badly enough to forgo the stock market’s better long-run track record.

More from Money’s Ultimate Retirement Guide:

How do I know if buying an annuity is right for me?

What annuity payout options do I have?

How can I get rid of an annuity I no longer want?

A new book hopes to impart important money lessons in just a few words and pictures

Talking to your kids about money is never easy. We have so many financial taboos and insecurities that many parents would rather skip it—just like their parents likely did with them. If that sounds like you, maybe a new easy-to-digest money guide written for teens can be part of your answer.

As a parent, you have to do something. Kids today will come of age and ultimately retire in a vastly less secure financial world. Their keys to long-term success will have little to do with the traditional pensions and Social Security benefits that may be a big part of your own retirement calculus. For them, saving early and building their own safety net is the only sure solution.

Most parents get that. After all, adults have seen first-hand the long-running switch from defined benefit to defined contribution plans that took flight in the 1980s. Yet only in the last 15 years have we really begun to grasp how much this change has undermined retirement security. Now, more parents are having the money talk with their kids. Still, many say they find it easier to talk about sex or drugs than finances.

The big challenge of our day, as it relates to the financial security of young people, is getting them thinking about their financial future now while they have 40 or 50 years to let their savings compound. But saving is only one piece of the puzzle. Young people need to protect their identity and their credit score—two relatively recent considerations. Many of them are also committed to making a difference through giving, which is an uplifting trait of younger generations. Yet they are prone to scams and don’t know how to vet a charity.

In OMG: The Official Money Guide for Teenagers, authors Susan and Michael Beacham tackle these and other basics in a breezy, colorful, cleverly illustrated booklet meant to hold a teen’s attention. The whole thing can be read in an hour. I’m not convinced the YouTube generation will latch on to any written material on this subject. And while the authors do a nice job of keeping things simple, they just can’t avoid eye-glazing terms like “liquidity” and “principal.”

But they make a solid effort to hold a teen’s interest through a handful of “awkward money moments,” which illustrate how poor money management can lead to embarrassing outcomes like their debit card being declined in front of friends or having to wear last year’s team uniform because they spent all their money at the mall. “Kids are very social and money is a big part of that social experience,” says Susan Beacham. “No teen wants to feel awkward, which is why we chose this word. If they read nothing else but these segments they will be ahead of the game.”

The Beachams are co-founders of Money Savvy Generation, a youth financial education website. They have a long history in personal finance and created the Money Savvy Pig, a bank with separate compartments for saving, spending, donating, and investing. In OMG, they tackle budgets, saving, investing, plastic, identity theft, giving, and insurance.

A new money guide for young people seems to pop up every few years. So it’s not like this hasn’t been tried before. Earlier titles include Money Sense for Kids from Barron’s and The Everything Kids Money Book by Brette McWhorter Sember. But most often this subject is geared at parents, offering ways to teach their kids about money. Dave Ramsey’s Smart Money Smart Kids came out last spring and due out early next year is The Opposite of Spoiled: Raising Kids Who are Grounded, Generous and Smart About Money from New York Times personal finance columnist Ron Lieber.

In a nod to how tough it can be to get teens to read a book about money, Beacham suggests a parent or grandparent ask them to read OMG, and offer them an incentive like a gift card after completing the chapter on “ways to pay” or a cash bonus after reading the chapter on budgets and setting one up. “Make reading the book a bit like a treasure hunt,” she says. That just might make having the money talk easier too.

Companies have stepped up their game with better options and features. Still, savings lag.

Employers have come a long way in terms of helping workers save for retirement. They have beefed up financial education efforts, embraced automatic savings features, and moved toward relatively safe one-decision investment options like target-date mutual funds. Yet our retirement savings crisis persists and may be taking a toll on the economy.

Three in four large or mid-sized employers with a 401(k) plan say that insufficient personal savings is a top concern for their workforce, according to a report from Towers Watson. Four in five say poor savings will become an even bigger issue for their employees in the next three years, the report concludes.

Personal money problems are a big and growing distraction at the office. The Society for Human Resources Management found that 83% of HR professionals report that workers’ money issues are having a negative impact on productivity, showing up in absenteeism rates, stress, and diminished ability to focus.

This fallout is one reason more employers are stepping up their game and making it easier to save smart. Today, 25% of 401(k) plans have an automatic enrollment feature, up from 17% five years ago, Fidelity found. And about a third of annual employee contribution hikes come from auto increase. Meanwhile, Fidelity clients with all their savings in a target-date mutual fund have soared to 35% of plan participants from just 3% a decade ago.

Yet companies know they must do more. Only 12% in the Towers report said their employees know how much they need for a secure retirement; only 20% said employees are comfortable making investment decisions. In addition, 53% of employers are concerned that older workers will have to delay retirement. That presents its own set of workplace challenges as employers are left with fewer slots to reward and retain their best younger workers.

Further innovation in investment options may help. The big missing piece today is a plan choice that converts into simple and cost-efficient guaranteed lifetime income. For a lot of reasons, annuities and other potential solutions have been slow to catch on inside of defined-contribution plans. But the push is on.

Another approach may be educational efforts that reach employees where they want to be found. The vast majority of employers continue to lean on traditional and passive methods of education, including sending out confusing account statements and newsletters, holding boring group meetings, and hosting webcasts. Less than 10% of employers incorporate mobile technology or have tried games designed to motivate employees to save.

These approaches have proved especially useful among young workers, who as a group have begun to save far earlier than previous generations. Still, some important lessons are not getting through. About half of all employers offer tax-free growth through a Roth savings option in their plan, yet only 11% of workers take advantage of the feature, Towers found. This is where better financial education could help.

The Motor City is counting on the market to keep its pension promises—a lot like under-saved 401(k) plan participants.

Guaranteed lifetime income has become the obsession of retirees, policymakers and the financial industry. Yet as the public pension debacle in bankrupt Detroit shows, we may never find a solution that completely eliminates the risk of your money running out.

The judge in Detroit’s closely watched proceedings said the recent deal the city cut with its retirees bordered on “miraculous,” as reported in The New York Times. That may be. But the deal still left the city’s 32,000 current and future retirees with diminished benefits and no certainty that they won’t be asked to give up more down the road. Their fate is largely in the hands of the markets—as is the case for millions of workers saving in 401(k) plans, and even many of those still covered by a private pension.

The problem is that there is only so much money we are willing to throw at the retirement savings crisis, an issue that has been exacerbated by an economy that until recently was growing far below potential. Every leg of the retirement stool is underfunded, including private pensions, though they are in the best shape. Many public pensions are in deep trouble. Social Security is on course for a funding shortfall. Personal savings are abysmal.

When government revenue or corporate profits or personal income are too low to allow for setting aside enough money for the future, we can only hope that the markets bail us out. In Detroit’s case, pension managers are counting on average annual returns of 6.75% for the next 10 years. That might happen, and it’s a lower expected rate of return than many public pensions are counting on. But given that stocks have already had a nice run, and that the bond portion of any portfolio will almost certainly come up far short of that mark, it’s probably an optimistic target. That means the city will likely have to raise taxes or cut pension benefits at some later date.

Private pensions face similar math, which is why many companies have frozen their plans or dropped them. Still, those that remain are generally on more solid footing. Profits have been strong and regulators hold companies to a higher funding standard. But by some estimates such stalwarts as IBM, Caterpillar and Dow Chemical will need to pay extra attention to their pension funding in coming years. The equation became more difficult recently, now that the Society of Actuaries has updated its mortality tables, which added a couple years to the life expectancy of both men and women at age 65.

Individuals in self-directed savings plans, such as 401(k)s, face their own funding problems. Workers may not have done the retirement income math but, like many pension managers, they haven’t been putting away the money they’ll need, while hoping for strong market returns to make it all work out. If they stay invested, and stocks keep chugging higher, they may be fine. Otherwise they will have to save more going forward or plan on spending less later—the do-it-yourself equivalent of raising taxes or having their benefits cut.

The good news for individuals is that you can act now on your own—you don’t have to stand by while a committee of actuaries and accountants blows smoke around the issue and kicks the problem further down the road. Steps you can take immediately include saving at least 10% of everything you make. Aim for 15% if your kids are gone and the mortgage is paid. Make sure you get the full company match in your 401(k) and automatically escalate contributions each year.

Young workers, especially, need to act now. Those just starting out are far less likely to have a private pension and more likely to suffer from future Social Security cuts. Many seem to have got the message. Millennials expect employment income and personal savings to account for 58% of their retirement income, Bank of America Merrill Lynch found. That compares to just 35% for boomers.

But even with greater savings, guaranteed lifetime income can remain elusive. As life expectancies have stretched, and interest rates have remained low for nearly a generation, fixed-income annuities have become relatively expensive. Even the so-called safe withdrawal rate of 4% per year now strikes some experts as too high for peace of mind. The push is on to make 401(k) savings more easily convertible into lifetime income. That would help because the big insurers that stand behind the promise of lifetime income are a lot more reliable than a city like Detroit.

Read Next: Retirees Risk Blowing IRA Deadline and Paying Huge Penalties

With just seven weeks left in the year, most IRA owners required to pull money out have not yet done so.

Two-thirds of IRA owners required to take money out of their account by Dec. 31 have yet to fulfill the obligation, new research by Fidelity shows. Now, with the year-end in sight, and thoughts pivoting to holiday shopping and get-togethers, legions of senior savers risk getting distracted–and socked with a punishing tax penalty.

IRA owners often wait until late in the year to pull out their required minimum distributions. Especially at a time when interest rates are low and the stock market has been rising, leaving your money in an IRA as long as possible makes sense. Some retirees may also be reluctant to take distributions for fear of spending the money and running short over time.

But blowing the annual deadline can be costly. The IRS sets a schedule of required minimum distributions, or RMDs, to keep savers from deferring taxes indefinitely. After reaching age 70 1/2, IRA owners must begin to take money out of their account each year and pay income tax on the amount. Failure to pull money out triggers a hefty penalty equal to 50% of the amount you were supposed to take out of the account.

Among 750,000 IRA accounts where distributions are required, 68% have yet to take the full amount and 56% have yet to take anything at all, Fidelity found. These IRA owners should begin the process now to avoid end-of-year distractions and potential mistakes like using the wrong form or providing the wrong mailing address, which can take weeks to find and correct.

A report by the Treasury Inspector General estimated that as many as 250,000 IRA owners each year miss the deadline, failing to take required minimum distributions totaling about $350 million. That generates potential tax penalties totaling $175 million. The vast majority of those who fail to take their minimum distributions are thought to do so as part of an honest mistake, and previously the IRS hasn’t always been eager to sock seniors with a penalty. But the IRS began a crackdown on missed distributions a few years ago. Don’t look for leniency if you miss the deadline without a good reason, like protracted illness or a natural disaster.

Early each year, your financial institution should notify you of any required distributions you must take by year-end. If this is the first year you are taking a required distribution, you have until April 1 to do so, but then only until Dec. 31 every subsequent year. Once notified, you still need to initiate a distribution. A lot of people simply do not read their mail and fail to initiate action in time.

Among other reasons IRA owners miss the deadline:

• Switching their account Institutions that open an account during the year are not required to notify new account holders of required minimum distributions until the following year.
• Death Often there is confusion about inherited IRAs. The beneficiary must complete the deceased IRA owner’s distributions in the year of death. Non-spousal beneficiaries of any age must begin taking distributions in the year following the year that the IRA owner died—and no notice of this is required.

With the penalties so stiff and the IRS cracking down on missed mandatory distributions, this is a subject that seniors and their adult children should talk about. In general, financial talk between the generations makes seniors feel less anxious and more prepared anyway. Required distributions can be especially confusing, and the penalties may have the effect of taking away money that heirs stand to receive. So it’s in everyone’s interest to get it right. Consider putting mandatory distributions on autopilot with a firm that will make the calculation and send you the money on a schedule you choose.

Related:

How will my IRAs be taxed in retirement?

Are there any exceptions to the traditional IRA withdrawal rules?

When can I take money out of my IRA without penalty?

Remarrying brings special savings hurdles and leaves blended families further behind, new research shows.

The nuclear family went out of fashion 40 years ago, and what has replaced it is a far cry from TV’s blissfully blended Brady Bunch. Modern families include more same-sex, single-parent and multi-generational make-ups—and, new research shows, these households have special savings obstacles.

Today, just 19% of U.S. households are married heterosexual couples with young children vs. 40% in 1970, according to Census Bureau data. The rise of non-traditional families is reshaping household economics and, it seems, deepening the nation’s savings crisis.

Blended families, where parents have remarried with young children, are the biggest segment of the new-look household. About 75% of divorced people remarry. In roughly 43% of all marriages it is the second time around for at least one member of the couple, and 65% of remarriages involve children from a previous marriage. In such families, the average level of savings is $158,600, vs. $264,300 for traditional families, according to a new Love Family Money study from Allianz.

Only 46% of blended families believe they are on track towards their financial goals vs. 60% of traditional households. Some 55% of blended families live paycheck to paycheck vs. 41% of traditional families; and 30% of blended families say they are not saving any money vs. 20% of traditional families.

Behind this struggle, in many cases, is the financial stress of a broken household, Allianz found. Parents in blended families are more likely to say that they or their partner brought financial baggage to the marriage, and a third cite insufficient monetary support from their ex as a major problem keeping them from saving. They often find it difficult to merge their financial resources and plans, which means they tend to wind up with multiple, and frequently competing, goals within the household.

Some 35% say they and their partner have different financial priorities that are difficult to navigate. They are almost twice as likely to feel less aligned as a family than those in a traditional household. Yet there is some good news. Perhaps because they have a hard time planning as a unit, blended families are more likely to talk about money and take steps to teach their children to budget and save, Allianz found.

How can blended families overcome their struggles? With the rise of non-traditional households more financial firms are weighing in. It’s not enough to talk to the kids about money. Couples need to talk to each other and develop mutual goals and a plan for getting there. Agree on a fair distribution of responsibility. To get on the right path to your financial goals, start is by finding ways to trim your major expenses, then make a budget that leaves room for saving. If you can’t free up much cash to put away now, start small and increase that amount with future raises. It’s also important to take a careful look at wills and legacy planning, since you want to protect your family financially as long as possible.

More on marriage and money:

Retirement makeover: 4 kids, 2 jobs and no time to plan

7 ways to stop fighting about money and grow richer, together

Common money problems; uncommonly smart solutions

A new novel revolves around a murderous life settlements investor. That's fiction. But these products have very real risks for buyers and sellers.

Selling your life insurance policy is right up there with taking out a reverse mortgage when it comes to retirement income sources that most people would be better off not tapping. But folks do it anyway, while paying little attention to the costs and, as a new novel points out, the risks of a policy landing in the wrong hands.

Selling a life policy for a relatively large sum—known as a life settlement—has gotten easier over the last decade. Hedge funds, private equity funds, insurers and pension funds dominate the market, which totals around $35 billion, up from $2 billion in 2002. Individuals are investing in them too, through securities that represent a fraction of a bundle of life settlements, sometimes called death bonds.

How Life Settlements Work

Those most likely to be offered a life settlement, formerly known as a viatical, are individuals with a universal life insurance policy they no longer need or can’t afford—or who simply don’t want to pay the premiums. A term life policy that converts to a universal policy may also have value. Policyholders sell their insurance for more than they’d get by surrendering the policy to their insurer. If you have a death benefit of $1 million, you might have $100,000 cash surrender value but manage to get $250,000 from a third-party investor. The investor assumes future premium payments and collects $1 million at your death.

Not a bad deal, assuming you’re comfortable with the fact that someone out there has a financial interest in your demise. You get a bigger payout for a policy you were going to give up anyway. Life policies with total face value in the tens of billions of dollars lapse every year, according to industry estimates. Many of those policies have value in the secondary market.

As part of their ad campaign, the life settlement industry has enlisted actress Betty White, who pitches these deals for “savvy senior citizens needing cash.” Heck, she’s more persuasive than Fred Thompson is about reverse mortgages. But don’t be easily swayed. Aging celebrities from Henry Winkler to Sally Field are pitching all sorts of elder products these days in what amounts to an encore career—not a genuine endorsement.

The Privacy Risk

Okay, so what are the downsides to life settlements? For policyholders seeking to raise money, the creepiest risk by far is that you sell your policy to Tony Soprano, who understands that the quicker you die, the greater his rate of return. This is the extreme case explored in a new novel by Ben Lieberman, The Carnage Account. The lead character is a Wall Street high roller who buys up life settlements and dispatches the people with the biggest policies. “Very few products on Wall Street have been immune to exploitation,” says Lieberman, noting the wave of subprime mortgages that blew up in the financial crisis. “The abuse can now hurt more than your property. Instead of losing your house you can lose your life.”

Of course, Lieberman is a novelist with an active imagination. Life settlements have been around since the AIDS crisis, and there has never been a known case of murder for quick payoff, says Darwin Bayston, CEO and president of the Life Insurance Settlement Association. There have been only three formal complaints of any kind about life settlements to national regulators in the last three years, he says.

Yet Lieberman, who has a long Wall Street background, finds the entry of cutthroat hedge fund managers more than a little unsettling. Policies with insurers or held by pension funds remain largely anonymous inside huge portfolios. Institutions base their settlement offers on average life expectancies, knowing some policies will pay early and some will pay late.

But in smaller and more actively managed pools investors may pick and choose life policies that promise a quicker payoff, based on things like depression and mental illness, or clues from medical staff as to the most “valuable” policies. Life settlement investors are also targeting an estimated $40 billion of death benefits that policyholders might sell to fund long-term care needs, spinning it as socially conscious investing. How else will these seniors pay for end-of-life care? “Instead of credit risk or prepayment risk we now evaluate longevity risk,” Lieberman says. “This began as a way to help terminally ill patients. Now it incorporates perfectly healthy people and presents a way to bet against human life.”

One former life settlements investor told me he has seen third-party portfolios of life policies fully disclosing the names of the insured parties, which is the basis for the success of Lieberman’s fictional Carnage Account. In his novel, a murderous hedge fund manager gets this information and speeds up the whole process. Again, that’s fiction. But even Bayston concedes that a determined life settlements investor could get the identities of the insured people whose long lives are bad for investment returns.

The Financial Risks

Now, let’s look at the non-fiction risks with life settlements. For sellers, they are considerable, and include giving up your policy too cheaply and paying dearly for the transaction, and possibly becoming ineligible to buy another policy. Always check the cash surrender value first. Do not be swayed by brokers putting on a hard sale. They stand to collect commissions of up to 30% of the settlement. If you are determined to quit paying premiums, rather than sell the policy consider letting the cash value fund future premiums until the cash is exhausted. That’s a much better deal for heirs if you pass away in the interim. You can sell the policy when the cash value has been depleted—and get more for it then.

For buyers, settlements are complex and illiquid, and they may not pay out for many years. Given these hidden risks, they generally do not make sense for individual investors. Wall Street, meanwhile, benefits from their huge fees and expected long-run annual returns of 12% or more. Perhaps more important, settlements offer returns with no correlation to the financial market, which can be attractive to sophisticated investors and institutions, such as pension funds.

The life settlements industry has leveled off since the financial crisis, in large part because policies are taking longer to pay, thanks to increasing longevity. That drives down returns. Underscoring this risk to investors: the Society of Actuaries recently published revised mortality rates showing that a 65-year-old can now expect to live two years longer than someone that age just 14 years ago. But investors have been edging back into the market the last couple years, drawn by more realistic return assumptions and an anticipated flood of life policies held by boomers who will need cash to pay for assisted living.

Only in a novel do life settlements investors manage longevity risk with a hit man. But there are good reasons to be careful nonetheless.

Young adults have been the most conservative investors since the Great Recession. But now they are cozying up to stocks at three times the pace of boomers.

What a difference a bull market makes. The Dow Jones industrial average is up 160% from its financial crisis low, and the latest research shows that young people are beginning to think that stocks might not be so ill advised after all.

Nearly half of older millennials (ages 25-36) say they are more interested in owning stocks than they were five years ago, according to a Global Investor Pulse survey from asset manager BlackRock. This may signal an important turnaround. Earlier research has shown that millennials, while good savers, have tended to view stocks as too risky.

In July, Bankrate.com found that workers under 30 are more likely than any other age group to choose cash as their favorite long-term investment, and that 39% say cash is the best place to keep money they won’t need for at least 10 years. In January, the UBS Investor Watch report concluded that millennials are “the most fiscally conservative generation since the Great Depression,” with the typical investment portfolio holding 52% in cash—double the cash held by the average investor.

This conservative nature has raised alarms among financial planners and policymakers. Cash holdings, especially in such a low-rate environment, have no hope of growing into a suitable retirement nest egg. In fact, cash accounts have been yielding less, often far less, than 1% the past five years and have produced a negative rate of return after factoring in inflation.

Conservative millennials, with 40 years or more to weather the stock market’s ups and downs, have been losing money by playing it safe while the stock market has turned $10,000 into $26,000 in less than six years. Yes, the market plunged before that. But in the last century a diversified basket of stocks including dividends has never lost money over a 20-year period—and often the gains have been more than 10% or 12% a year.

Millennials are giving stocks a look for a number of reasons:

• The market rebound. The market plunge was scary. Millennials may have seen their parents lose a third of their net worth or more. But with few assets at the time, the market drop didn’t really hurt their own portfolio, and stocks’ sharp and relentless rise the past six years is their new context.
• Saver’s mentality. Millennials struggle with student loans and other debts, but they are dedicated savers. They have seen first-hand how little their savings grow in low-yielding investments and they better understand that they need higher returns to offset the long-term erosion of pension benefits.
• Optimism still reigns. Millennials are easily our most optimistic generation. At some level, a rising stock market simply suits their worldview.

This last point shows up in many polls, including the BlackRock survey. Only 24% of Americans believe the economy is improving—a share that rises to 32% looking just at millennials, BlackRock found. Likewise, millennials are more confident in the job market: 32% say it is improving, vs. 27% of Americans overall. Millennials are also more likely to say saving enough to retire is possible: only 37% say that saving while paying bills is “very hard,” vs. 43% of the overall population.

Looking at the stock market, 45% of millennials say they are more interested than they were five years ago. That compares with just 16% of boomers. Millennials also seem more engaged: They spend about seven hours a month reviewing their investments, vs. about four hours for boomers.

This is all great news. Millennials will need the superior long-term return of stocks to reach retirement security. Yet many of them are just coming around to this idea now, having missed most of the bull market. In the near term, they risk being late to the party and buying just ahead of another market downdraft. If that happens, they need to keep in mind that the market will rebound again, as it did out of the mouth of the Great Recession. They have many decades to wait out any slumps. They just need to commit and stay with a regular investment regimen.

Read next:

Schwab’s Pitch to Millennials: Talk to (Robot) Chuck
Millennials Are Flocking to 401(k)s in Record Numbers
Millennials Should Love It When Stocks Dive