Millennials, meet the stock market

“Millennials are making a costly investment mistake,” said Riley Griffin in Bloomberg .com. Right now almost 1 in 3 are using cash instruments like savings accounts to house their long-term investments, according to market researchers. More than 1 in 5 Millennials are earning less than 1 percent interest on their savings, while 19 percent are not earning anything at all—and even more of them simply don’t know the interest rate on their accounts. With most Millennials’ savings accounts earning less than 2 percent interest, they are “losing buying power” to inflation. Experts say the generation was “frightened out of the stock market” in the wake of the financial crisis. But to improve their longterm financial picture, they will need to become comfortable investing in stocks. self-supporting. According to the IRS, 343,000 children forked out a total $1 billion in kiddie tax in 2015. Last year’s overhaul simplifies their calculations, especially for families with several kids subject to the tax. But it can mean children get taxed at higher rates on some income. So before making gifts to young people, “generous parents, grandparents, and others” should carefully study the income-tax impact.