📈 Why Millennials and Gen Z Are Breaking the Old Investing Rules

Younger investors are swapping stocks for real estate, startups, and crypto—find out why and how you can follow their lead.

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Hey there,

You only have to scroll through so many "how to retire by 40" posts before you notice: young investors aren't building wealth the same way their parents did.

Sure, they’re still buying stocks. And bonds? Sometimes. But the fastest-growing piece of their portfolios is alternative assets like fractional real estate, pre-IPO company shares, and crypto!

Actually, Gen Z investors are four times more likely to own cryptocurrencies instead of a retirement account.

Source: commercial.yougov.com

And Bloomberg reports that wealthy Millennials and Gen Z investors are allocating 15–25% of their portfolios to various alternative assets—a number that was near zero just a decade ago.

So what changed?

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Why This Shift Is Happening

I see three main drivers influencing this change:

1. Access is easier than ever. Platforms now let you buy $20 slices of real estate or invest in startups without being a certified venture capitalist.

2. They want control. They want to choose where their money goes—whether that’s a local rental property, a health-tech startup, or a renewable energy project—they don’t trust “the system” to have their best interest at heart.

3. Frustration with traditional returns. Younger investors came of age during slow-moving markets and terrible interest yields. They’re not excited about saving and investing for 40 years to “maybe” retire.

Younger investors aren’t against investing itself, just the idea that our only choices are a 401(k) and a savings account. To that, they’re calling bull$#!%.

Alternative Assets In the Real World

Here’s where I’m seeing money move in the real world:

Fundrise (one of my favorite fractional real estate platforms—and one of the largest) reported a record $1 billion in new investor capital in 2024. And most of their investors start with only $500.

I'm also seeing a surge in younger investors using Coinbase's crypto ETF products. By owning these crypto baskets, they get a chance to own cryptocurrencies without needing to become an expert in them.

Everyday investors are also investing in startups now—something that used to be exclusive to wealthy venture capitalists. Platforms like StartEngine and Republic allow retail investors to participate in early-stage companies with small dollar amounts.

The Risk Side of the Story

But I’d be doing you a disservice not to mention that these alternative assets also come with real risks:

• Many of them are less regulated, which means less protection for your money.

• Because these investment vehicles have less adoption than centuries-old traditional markets, some assets may even be harder to sell quickly if you need the cash.

• Price swings can be bigger—especially in crypto and early-stage startups.

So the smart move isn’t to go “all in” because you saw someone double their money in crypto—it’s to treat them like side dishes, enjoy them, but don’t mistake them for the main course.

My Recommended Approach

If you want to invest in these alternative assets—which I do recommend—here’s a smart way to do it:

• Invest 85–90% of your money in core, long-term holdings (individual stocks and broad ETFs, bonds, etc.).

• 10-15% in alternative assets you understand and believe in.

If you’re curious about getting started, start small—most platforms let you begin with $50–$100. Watch how these investments behave and learn from the process.

Bottom Line

I want to be clear: I do not recommend you chase the next crypto unicorn—but you should build a smart portfolio that reflects your goals while leveraging the new and unique resources available to you. Do it thoughtfully, with proper risk management, and without losing sight of what actually builds long-term wealth.

Tomorrow, I'll share a step-by-step guide to buy these alternative assets safely and profitably.

Keep investing wisely,
✍️ Isaiah from Earn Out Loud

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