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How inflation may force millennials to reconsider risk

Originally published on Marketwatch.com http://www.marketwatch.com/story/how-inflation-may-force-millennials-to-reconsider-risk-2014-12-02?dist=afterbell

Millennials are people born after 1980. I ‘ve seen sources that give differing dates, but I think being born between about 1980 and 2000 qualifies you as a millennial.

Pew Research has done some interesting polling and found that millennials grew up with technology, like video games, send lots of text messages and tend to get married later. They also put off homeownership until later in life and are more likely to live in a city than their parents who sought refuge from urban life in suburbia.

One reason they may be somewhat averse to homeownership is because they lived through a long downturn in the housing market. If you bought an average priced house on April 1, 2006 it would have cost $257,000. On Oct. 1, 2010, it would have been worth $204,200 for a decline of $52,800, a drop of over 20% after holding more than four years. By Sept. 1, 2014, your house would have been valued at $259,000 and you would have had a whopping gain of $2,000 or just over 0.75% after holding your house over eight years. That is a hypothetical illustration based on the national average home price and doesn’ t include costs like taxes, insurance,

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