5 ways Gen-Z investors can turbocharge their wealth planning
millennials to Gen Z, the world of investing is witnessing a seismic shift. With a keen eye for financial independence and a penchant for innovation, Gen Z is revolutionising the way we think about wealth planning. Here are some trends and investment tips tailored to Gen Z's unique needs, helping them navigate their investment journey and accumulate wealth while staying ahead of the curve.
Gen Z is entering the world of investment at a younger age, giving them a significant edge. Starting early allows them to benefit from the power of compounding, potentially accumulating substantial wealth over time. On average, Gen Z investors begin their investment journey earlier than millennials, often as young as 18.
With fewer financial responsibilities in the early stages of their careers, this new generation tends to lean towards speculative investing. While adopting an aggressive investment approach can be beneficial, Gen Z investors must also know when to adjust their strategy to mitigate unnecessary risks. While stocks and bonds remain popular, Gen Z investors are increasingly exploring alternative investment options such as cryptocurrencies, NFTs, and real estate investment trusts (REITs).
Diversifying your portfolio can help spread risk and potentially increase returns, providing an advantage in today's rapidly changing financial landscape. Data shows that 55% of Gen Z invest in cryptocurrencies, 41% in stocks, and 25% in NFTs. Most tend to avoid real estate avenues due to perceived high entry costs.
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