Latest news with #youngInvestors
Yahoo
23-06-2025
- Business
- Yahoo
Rich young Americans are ditching the stock market
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. The stock market has long been the go-to choice for people looking to invest their money. But that could be about to change as a younger generation — with a preference for alternative investments outside the shaky stock market — enters the scene. According to a recent survey from Bank of America, individuals aged 21 to 43 with at least $3 million in assets only have 25% of their portfolio invested in stocks — compared to 55% for wealthy investors aged above 43. Most rich, young Americans (93%) say they plan to allocate more of their portfolio to alternatives in the next few years. So, what alternative investments are capturing the interest of these young millionaires? Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) The Bank of America survey revealed that among wealthy young investors, 45% own gold as a physical asset, and another 45% are interested in holding it. Historically, gold has served as a hedge against inflation and market volatility. Many investors turn to 'safe haven' assets like gold during economic and geopolitical instability to preserve their wealth. The enthusiasm of investors has indeed propelled the price of gold to record levels with the precious metal recently sitting around the $3,300 per ounce mark as of June 2025. There are lots of gold assets to choose from, including gold bars, coins and gold stocks. One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of American Hartford Gold. Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account — combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to potentially hedge their retirement funds against economic uncertainties. Even better, you can often roll over existing 401(k) or IRA accounts into a gold IRA without tax-related penalties. To learn more, get your free 2025 information guide on investing in precious metals. Qualifying purchases can also receive up to $20,000 in free silver. Real estate has long been considered a solid portfolio hedge, as rent and property values tend to increase with inflation. It's no surprise that high-net-worth individuals — regardless of their age — see opportunity in this asset. In the Bank of America survey, 31% of younger people said real estate presents the greatest opportunities for growth. Federal Reserve data also shows that the top 1% of Americans hold over $6 trillion in real estate assets. For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors. With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property. With risk-adjusted internal returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets. More than 72% of younger investors (ages 21-43) believe it is no longer possible to achieve above average investment returns by investing solely in traditional stocks and bonds. Art is one of the alternative investments that has captured the attention of smart investors. With over $67 billion in annual transaction volume and a total estimated global value of $1.7 trillion, art represents a massive asset class, according to Deloitte. In fact, fine art has historically outperformed the S&P 500, with contemporary art achieving an annual return of 11.5% from 1995 to 2023, compared to the S&P 500's 9.6% during the same period. In the past, you had to be ultra wealthy to invest in art, considering you needed to have the millions it takes to buy a painting at an auction. But Masterworks has now changed that. This investment platform has made it possible for more investors to access this prized asset. Instead of buying a single painting for millions of dollars, you can now invest in fractional shares of blue-chip paintings by renowned artists including Pablo Picasso, Basquiat and Banksy. All you have to do is select how many shares you want to buy and Masterworks will take care of the rest. Step 1: Accredited investors need to visit where they'll be prompted to enter a few details about their portfolio and investment goals. Step 2: Investors can schedule a call with one of Masterworks Advisers — registered investment representatives — to determine which current art holdings match their investment goals. The benefit is that you can select one or many art pieces, buying fractional shares based on your interests and goals. Step 3: As soon as Masterworks sells a piece you invested in, you get a return from the net proceeds. While every artwork performs differently, overall the past three exits — where Masterworks has acquired, held and eventually sold the art work — delivered median returns of 17.6%, 17.8%, and 21.5%. See important Regulation A disclosures at Read more: Rich, young Americans are ditching the stormy stock market — Private equity refers to investments in companies that are not publicly traded on a stock exchange. This asset class involves investing directly in private companies, often during their growth stages or through buyouts. It remains a popular choice among young investors seeking higher returns and more control over their investments. The Bank of America survey showed that over 25% of young wealthy millionaires identified private equity as one of the greatest growth opportunities. While private equity offers significant upside potential, it also requires a longer-term commitment and comes with higher risks than public equities. Private equity is a broad category that spans a wide range of assets. So, finding a firm that can help you allocate your capital to the right assets, could be a way to dip your toe into this lucrative category. Investors used to be skeptical about cryptocurrency, perhaps due to its speculative and highly volatile nature. But it has now entered the mainstream, and especially with President Trump vowing to create a 'strategic national Bitcoin stockpile', crypto has surged to a global market cap of $3.72 trillion. It's no surprise that the wealthy millennials and Gen Z are fond of this asset class. In the Bank of America survey, 29% of younger people said cryptos offer the greatest opportunities for growth, while only 7% of the older group agreed. Rich young Americans also allocated 15% of their portfolios to crypto, compared to 2% of the older generation. If you're interested in getting in on the crypto game, you can join the club through platforms like Gemini, which allows users to buy, sell and stores bitcoin and 70 other cryptocurrencies. You can place instant, recurring and limit buys on our growing and vetted list of available cryptos. But if you're not ready to buy just yet, you can still invest in crypto with their Gemini credit card. JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it's too late) This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Millions of Americans now sit on a stunning $35 trillion in home equity — here's 1 new way to invest in responsible US homeowners This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
10-06-2025
- Business
- Globe and Mail
Beyond Free Trades: 3 Ways Robinhood Continues to Innovate
Founded a little over a decade ago, Robinhood Markets Inc. ( HOOD ) broke into an industry filled with dominant, legacy players such as Charles Schwab ( SCHW ), Interactive Brokers ( IBKR ), and even JP Morgan Chase ( JPM ). How did an obscure Menlo Park, California, start-up rise from obscurity to dominance? Founder and CEO Vladimir Tenev had a simple but revolutionary idea to disrupt a financial services industry ripe for disruption. Tenev needed a way to gain a foothold with young investors who had heard horror stories from their parents about the pitfalls of investing, including the dot com bust and the Global Financial Crisis (which had occurred 5 years before Robinhood's founding). As the name 'Robinhood' implies, Tenev set off on a mission to 'democratize' investing by offering commission-free stock trading (where the company would earn revenue from Payment for Order Flow (PFOF) & margin & securities lending). As a result, HOOD has broken into the younger demographic (with an average user of 35 years old), turned the profit spigot on, and has grown sales each year since 2022, achieving full-year revenue of nearly #3 billion in 2024. Despite Robinhood's monumental success thus far, Tenev and his team continue to innovate better than anyone else in the industry. Below are three of Robinhood's most exciting innovations. Invest America: Democratizing Capitalism 'Compound interest is the eighth wonder of the world.' ~ Albert Einstein Yesterday, Vlad Tenev, along with several Fortune 500 CEOs, including Dell Technologies ( DELL ) CEO Michael Dell, Goldman Sachs ( GS ) CEO David Solomon, and Uber ( UBER ) CEO Dara Khosrowshahi, joined President Trump in the White House to announce the 'Invest America' plan. As part of Trump's 'Big Beautiful Bill,' Invest America will fund $1,000 accounts for every child born in America that will track a stock market index. According to the White House website, the plan 'will afford a generation of children the chance to experience the miracle of compounded growth and set them on a course for prosperity from the very beginning.' While the plan will undoubtedly help America's youth, HOOD stands to benefit dramatically. Because the meeting of the minds was spearheaded by Brad Gerstner, whose Altimeter Capital Management added $120 million worth of HOOD stock in Q1, Robinhood has the clear advantage of benefitting from the Invest America Plan. Not only does HOOD cater to a younger demographic, but the firm has already revealed a UI for the proposed 'Trump Accounts.' Robinhood 'Gold Card' Amasses Massive Waiting List In March 2024, Robinhood entered the credit card market with its 'Gold Card.' The Gold Card has amassed a massive following a waitlist due to its generous rewards rate, which offers 3% cash back on all purchases and 5% back on travel purchases through Robinhood's travel offering. Beyond Investing: Robinhood Adds Crypto & Betting Markets If you think about what made companies like Apple ( AAPL ) such magnificent stocks over the years, the genius is in the ecosystem. For instance, AAPL started with computers, later branching out to MP3s, iPhones, AirPods, music, apps, and much more. Robinhood is mimicking the ecosystem idea in markets. In addition to stocks, Robinhood users can bet on political contracts and invest in cryptocurrencies like Bitcoin and Ethereum. Bottom Line Through genius innovations like commission-free trading, Invest America, Gold Card, and crypto and betting markets, Robinhood is becoming a juggernaut in the highly competitive fintech space. With its one-stop shop approach, the company is acquiring users rapidly, making the stock a good long-term bet. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Dell Technologies Inc. (DELL): Free Stock Analysis Report The Charles Schwab Corporation (SCHW): Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report Uber Technologies, Inc. (UBER): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report
