Two-thirds of US investors surveyed, ages 21-42, believe it’s impossible to achieve above-average returns based solely on traditional finance. Instead, they see cryptocurrencies as appropriate tools for the job.

Numerous previous investigations have shown that younger generations are much more inclined towards the digital asset sector than older people. At the peak of the bull run in 2021, many young people said they would be happy to receive part of their salaries in crypto instead of fiat.

Diversification is the key

In its surveys, Bank of America estimated that 75% of US investors aged 42 and under think that alternative financial instruments, such as cryptocurrencies, real estate, private equity and commodities, should have some share in their investments. wallets. In his opinion, having exposure only to traditional stocks and bonds cannot guarantee future earnings.

In comparison, only 32% of those over that age share the same opinion, as they prefer to allocate their funds to stocks and have distributed only 5% of their money to alternative investments such as crypto.

The analysis further revealed that 68% of the parents surveyed had already had an educational discussion with their children about how to transfer family wealth to them. Baby Boomers are expected to transfer $84 trillion to Generation X and Millennials by 2045.

Katy Knox, president of the Private Bank of Bank of America, stated that “estate planning is inherently multigenerational.”

“As we see among our clients’ families, financial values ​​and behaviors take shape early in life and live in legacies that are passed down from one generation to the next. The findings of this research point to a larger role that wealth advisors and the financial services industry are playing in helping families transition out of wealth and meet the needs of the next generation,” he added.

Apparently, most of the people from the older generations might not advise their children to interact with cryptocurrencies as they prefer to stay away from the asset class.

However, the lessons could be completely different when Generation X and Millennials give their children lessons on financial planning in the future.

Millennials and their love for cryptocurrencies

A 2021 CNBC investigation estimated that 47% of millennial millionaires had invested at least a quarter of their funds in digital currencies. On the other hand, 83% of older investors did not like cryptocurrencies and have not invested in them.

Another survey revealed that Millennials are the demographic most intrigued by the asset class. When bitcoin was near its highest price in November, 36% of people surveyed born between 1981 and 1996 said they would like to receive part of their work payments in crypto. Gen Z was even more supportive as 50% wanted that option.

This summer, the investment firm Alto estimated that 40% of American millennials are HODLers. The exact number of people admitted to owning stocks, while fewer than that revealed they have exposure to mutual funds.

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