For years, many Americans have believed that investing in traditional stocks and bonds is the best way to build wealth. But there is a growing generational divide among wealthy millennials and Gen Zers, who are ditching long-standing investing practices for collectibles and crypto-heavy portfolios.
Instead, these younger high-net-worth individuals are pouring money into alternative investments. The survey found that about 94% of Gen Z and millennial investors are collecting items like watches, classic cars, wine, sneakers and antiques, while just 57% of baby boomers are interested in those same collectibles.
The portfolio choices of younger people do suggest a perspective shift between the generations," the report said. "Just as young and old rank investment opportunities differently, their views on risk may differ as well." About 31% of younger investors see real estate as the best investment opportunity, while crypto and other digital assets came in a close second with 28%. By comparison, just 4% of older investors thought that crypto was a good investment opportunity.