Rich young Americans are not following in the footsteps of billionaires like Warren Buffett, Elon Musk, and Jeff Bezos, who built most of their wealth through stocks. The stock market has always been a popular place to invest money, but younger generations are starting to look for other options outside the stock market because they think it’s too risky and unstable.
A new survey from Bank of America shows that people aged 21 to 43 with at least $3 million in assets have only 25% of their portfolio in stocks, as per Moneywise report. In comparison, older wealthy investors aged above 43 keep 55% of their money in stocks. Most rich young Americans — about 93% — say they plan to invest more of their money in “alternative assets” instead of traditional stocks in the next few years.
Many young millionaires are turning to gold because it’s considered a safe investment that protects money during inflation and times of economic trouble. The survey found that 45% of wealthy young investors already own gold as a physical asset, and another 45% are interested in buying it. Because of this growing interest, the price of gold has reached record levels, going above $4,000 per ounce.
Investors can buy gold in many forms, like gold bars, coins, or gold stocks. Some investors are opening Gold IRAs — special retirement accounts that let them hold physical gold and still get tax benefits. These accounts combine the safety of gold with the tax perks of an IRA. Thor Metals offers help with setting up a Gold IRA and even provides free information guides, including details about how to get up to $20,000 in free metals on qualifying purchases.
Another popular choice among the young rich is artwork. Over 72% of investors aged 21-43 believe it’s not possible to get high returns by investing only in traditional stocks and bonds. The art market is huge, with more than $67 billion in yearly transactions and an estimated global value of $1.7 trillion, as stated by Moneywise. From 1995 to 2023, fine art performed better than the S&P 500, with contemporary art earning 11.5% per year compared to the S&P 500’s 9.6%.
In the past, only the very rich could invest in art because buying a single painting cost millions. Now, platforms like Masterworks make it easier for regular investors to buy fractional shares of famous paintings by artists like Picasso, Basquiat, and Banksy. Investors just choose how many shares they want, and Masterworks manages everything else. Some Masterworks investors have earned annualized net returns of +17.6%, +17.8%, and +21.5% on artworks held for over a year.
Real estate is another major favorite among young millionaires. Many see it as a good hedge against inflation since property values and rent usually rise when prices go up. In the Bank of America survey, 31% of younger investors said real estate offers the best growth opportunities. The Federal Reserve says the top 1% of Americans together own over $6 trillion worth of real estate.
Companies like First National Realty Partners (FNRP) allow wealthy investors to buy into commercial real estate properties leased by top brands like Whole Foods, CVS, Kroger, and Walmart. Through FNRP, investors can earn steady cash flow without dealing with tenants or property management themselves. Another platform, Homeshares, gives accredited investors access to the $36 trillion U.S. home equity market, which was once only available to big institutions.
With a minimum of $25,000, investors can put money into hundreds of owner-occupied homes in major U.S. cities through Homeshares’ U.S. Home Equity Fund. According to Moneywise, homeshares aim for 14% to 17% target returns, offering an easy, hands-off way to earn from housing markets without owning or managing properties. For smaller investors, crowdfunding platforms like Arrived let anyone start investing in real estate with as little as $100.
Arrived offers shares in rental homes and vacation properties that are fully vetted for value and income potential. The platform is backed by Jeff Bezos, and both accredited and non-accredited investors can join. Arriving gives people a simple way to invest in real estate and earn from rent or appreciation without doing any of the hard work.
Cryptocurrency is another favorite among young rich investors, even though it was once seen as risky and unstable. With President Trump promising to build a “strategic national Bitcoin stockpile,” crypto has become more mainstream and reached a global market cap of $3.68 trillion. In the Bank of America survey, 29% of younger investors said crypto offers the best growth potential, while only 7% of older investors agreed.
Rich young Americans keep about 15% of their total portfolio in crypto, compared to only 2% for older investors, as per Moneywise. Those interested in joining the crypto market can use Robinhood Crypto, a platform where users can buy and sell crypto with no trading fees or commissions. Robinhood Crypto also gives up to 1% deposit match on crypto deposits and transfers, and its low fees mean users can get up to 3.6% more crypto when they trade.
Overall, rich young Americans are moving their money away from the traditional stock market and into gold, art, real estate, and crypto — assets they believe can better protect and grow their wealth in uncertain times.
Q1. Why are rich young Americans investing less in stocks?
They find the stock market too risky and prefer safer or high-growth options like gold, art, real estate, and cryptocurrency.
Q2. What are the most popular investments for wealthy young Americans?
They are mostly putting their money into gold, fine art, real estate, and crypto instead of traditional stocks.
