Young Americans’ Wealth Is Growing Fast

By: Anneken Tappe · February 15, 2024 · Reading Time: 2 minutes

Recent Gains

Americans between the ages of 18 and 40 have seen their wealth surge nearly 80% between the beginning of 2019 to the end of 2023, according to data from the Federal Reserve Bank of New York .

This growth among millennials and Gen Zers far outpaced that of older generations, like baby boomers and Gen Xers, whose wealth increased far less over the same period.

Riding the Risks

The post-pandemic financial success of younger investors is due primarily to their preference for stock-heavy portfolios, and the convenient timing of the stock market rally that arrived with the great reopening of the economy.

Younger investors also often have other goals and priorities for their investments, potentially resulting in higher risk appetite compared to older investors. People commonly become less risk tolerant as they approach retirement. That’s why it’s perhaps not surprising to see younger investors veer more in the direction of higher risk investments, like stocks.

Drop in the Bucket

Even so, young investors are still lagging older ones by a mile. At the end of last year, Americans under 40 controlled less than 7% of the total wealth in the U.S., while Americans over 54 controlled nearly 73%. Now if that isn’t motivation.

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