Older investors like stocks. Younger investors prefer “alternatives.”
That is the takeaway from a new Study of Wealthy Americans, published in June by Bank of America Private Bank.
The bank surveyed 1,007 Americans with at least $3 million in investable assets. When the survey asked them to rank the investments they considered the “greatest opportunities for growth,” responses varied dramatically by age.
Older Americans, ages 44 and above, chose stocks, stocks and more stocks. Their top-ranked investment was domestic equities. “Emerging market equities” and international stocks ranked third and fourth, behind real estate.
Younger Americans, ages 21 to 43, ranked six alternative investments above stocks. “Alternative,” in this context, means anything other than stocks and bonds, the bread and butter of traditional investing.
Here are the top five investments for Gen Z and millennial investors, according to the Bank of America survey:
- Real estate (31%)
- Crypto/digital assets (28%)
- Private equity (26%)
- Personal company/brand (24%)
- Direct investment into companies (22%)
- Companies focused on positive impact (21%)
The findings suggest wealthy millennials and Gen-Zers have different financial priorities from older investors. Some young millionaires made their money by launching a company or app. Others got in early on cryptocurrency, a movement that paid off exponentially for a small group of mostly young, male investors.
Average net worth by age:See how you compare
