This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.

As more wealth passes into the hands of Gen Z and Millennials, the traditional stocks-and-bonds playbook is losing its luster.

According to a recent survey by Bank of America's private bank, stocks make up less than a third of wealthy Gen Z and Millennial portfolios, on average. That's significantly less than the 46% they hold in Gen X portfolios or the 58% they occupy for older folks.

In fact, younger millionaires hold almost as much money in less traditional investments as they do in stocks, the survey showed. The most popular of these new asset types: crypto. But they also invest in real estate, collectibles, gold, and even sports teams.

A big part of it is math. Most of the Gen Z and Millennials surveyed are drawn to investments with a higher-return potential, and say that's no longer just stocks and bonds.

But their investment choices are also a form of self-expression. While the appeal for older investors tends to be diversification, many Gen Z and Millennials said they've chosen less traditional investments to chase their passions, give their money purpose, or simply have fun.

Of course, when you have at least $3 million in investable assets (the threshold to participate in Bank of America's survey) there's more room to take chances — and investing in highly volatile assets like crypto does require a greater risk tolerance.

But this trend isn't just among millionaires: 71% of all Gen Z investors surveyed by the World Economic Forum in 2024 had at least a one-third of their portfolio in crypto. In the U.S., EMarketer forecasts that Gen Z will be crypto's fastest-growing segment, representing 33% of U.S. crypto owners by 2028 — up from 14.4% in 2021.

So what?

Investing is increasingly personal. If you're more likely to invest based on your interests or social scene, growing your money becomes a lifestyle choice as much as a financial decision.

But when your money is tied up in your identity, your enthusiasm can obscure the risks. So remember:

New is not always better. Crypto, private markets, collectibles, and AI-powered investing tools have expanded investors' options — but every investment comes with its own risk of loss, fees, and trade-offs. Make sure you understand those before jumping in.

Diversification is one of your best defenses. Pouring a lot of money into a single exciting asset class might magnify gains, but it can also magnify losses. Spreading your money across a mix of investment types can help reduce risk over time.

Strategy is important. If you invest in sneakers, trading cards, or funny digital tokens because they’re more fun than a traditional index fund, ask yourself how they fit into your long-term financial goals. Not every endgame has to be the same, but you want to be clear on your reasons.

The market will keep changing. Investing today looks very different than it did 20 years ago, and it will likely look very different 20 years from now too. Staying curious can help you avoid feeling overwhelmed or rushed when new opportunities arise.

Related Reading

How Younger Generations Are Redefining Wealth Through Crypto and Collectibles (VanEck)

How Real People Are Making Sense of Crypto (Investopedia)

The American Dream, Backed by Bitcoin? (SoFi)

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

OTM20260803SW