Over the past few weeks, we’ve explored several trends reshaping the advisory landscape. From growing interest in alternative investments, to renewed concerns over Social Security’s outlook, the gap between rising retirement account balances and actual retirement readiness continues to grow.
Today, we’re looking at another piece of that puzzle. Wealthy Gen Z and Millennial investors are increasingly questioning whether traditional stock and bond portfolios alone can deliver the returns they expect.
According to a recent Bank of America Private Bank Study of Wealthy Americans, 67% of Gen Z and Millennial investors with at least $3 million in investable assets believe traditional stocks and bonds can no longer deliver above-average returns. Instead, they’re allocating more capital to alternative investments, including private markets, real estate, and digital assets. Nearly 90% expect those allocations to increase over the coming years.
That shift appears to reflect a broader change in mindset rather than a temporary investment trend. Many affluent investors under 45 have watched substantial wealth created through private companies, venture-backed startups, and digital assets. The thought of a traditional 60/40 portfolio doesn’t seem to cut it.
