Why Don’t Millennials Like the Stock Market? – Annapolis and Towson Estate Planning

A new Bankrate article asked more than 1,000 Americans what they consider the best way to invest money they won’t need for 10 or more years. Real estate was the most popular response. This answer was given by 31% of respondents.

For young people, this preference is especially true. Among millennials (those ages 23 to 38), 36% responded that real estate is the best long-term investment option. Zero-risk cash investments, such as high-yield savings accounts or CDs, was second with 18% of respondents, and the stock market was third, with 16% of respondents.

CNBC reports in its recent article “Millennials agree on the best way to invest—but they’re wrong” that not only do millennials have the biggest preference for real estate of any generation, they’re also the least likely to invest money into stocks. This group has never been attracted to the stock market despite the 10-year long bull market. One reason may be because they favor more concrete investments, and their preference for real estate shows the desire many ultimately have for homeownership. The tangible nature of real estate gives them more comfort than what may seem more abstract, such as stock ownership via mutual funds and ETFs.

However, real estate isn’t always the best or simplest way to build wealth, especially for those who just own single-family homes.

While there are lots of reasons to buy a home, it’s no replacement for a retirement fund.  It is usually a terrible investment.

Home ownership has many expenses, such as property taxes, maintenance and homeowner’s insurance. Although a home may increase in value over time, it probably won’t appreciate enough to offset all the money spent on expenses over the years.

An investor can generally assume that, over the long term, funds invested in a low-cost diversified index fund will realize a roughly 7% annualized return.

Even with the ups and downs in the market, stocks are typically a reliable long-term investment. The S&P 500 earns an average annual return of about 10%. Adjusted for inflation, this is still an annual return of 7% to 8%. In addition, investing in the market doesn’t have to be complicated. A simple way to get going, is by contributing to a tax-advantaged retirement account, like an employer-sponsored 401(k) plan, Roth IRA or traditional IRA.

Whatever path you choose, it’s critical to begin saving and investing as much as you can, as early as you can. The more time your money has to grow, the better the result.

Reference: CNBC (July 18, 21019) “Millennials agree on the best way to invest—but they’re wrong”

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys

For Immediate Release

Contact: Jane Frankel Sims


Contact: Frank Campbell


Sims & Campbell Estates and Trusts

Frankel Sims Law and Holden & Campbell
Merge to Form Sims & Campbell

Firm will offer comprehensive Trusts & Estates services through offices in Towson and Annapolis

TOWSON, Md. (April 26,2019)  Frankel Sims Law and Holden & Campbell have jointly announced the merger of their firms to create a boutique Trusts & Estates law firm providing comprehensive services in the fields of Estate Planning, Estate Administration, Trust Administration and Charitable Giving. The combined firm will be named Sims & Campbell and have offices in Towson, Md. and Annapolis, Md.  Jane Frankel Sims and Frank Campbell will lead and hold equal ownership stakes in the firm.

Sims & Campbell will have 9 attorneys and 15 legal professionals that handle every facet of estate and wealth transfer planning, including wills, revocable living trusts, irrevocable trusts, estate and gift tax advice, and charitable giving strategies.  The firm will focus solely on Trusts & Estates but will serve a wide range of clients, from young families with modest resources to ultra-high net worth individuals.  This allows clients to remain with the firm as their level of wealth and the complexity of related estate and tax implications change over time. 

“By joining forces, we have expanded our footprint to conveniently serve clients in Maryland, D.C. and Virginia” said Jane Frankel Sims.  We are seeing some of the greatest wealth transfer in our country’s history, and we want to continue to be on the leading edge of helping our clients maintain and enhance their family’s wealth.  In addition, we aim to serve our clients for years to come, and the new firm structure will allow Sims & Campbell to thrive even after Frank and I have retired.”    

“Jane and I have always admired each other’s firms and recognized the need to provide even greater depth and breadth of focused expertise to help families amass and protect their wealth from generation to generation,” said Frank Campbell.  “Now we have even greater capabilities to make a real difference for our clients.” 

The Sims & Campbell Towson office is located at 500 York Road, on the corner of York Road and Pennsylvania Avenue in the heart of Towson.  The Annapolis office is currently located at 716 Melvin Avenue, and is moving to 181 Truman Parkway in August, 2019.  For more information, visit www.simscampbell.law.