Sep 3, 2025
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Warren Buffett, Elon Musk, and Jeff Bezos are among the wealthiest Americans who ever lived. The majority of their wealth is in stocks. But when it comes to investing in the stock market, today’s rich young Americans are not following in their footsteps.
The stock market has long been the go-to choice for people looking to invest their money. But that could be about to change as a younger generation — with a preference for alternative investments outside the shaky stock market — enters the scene.
According to a recent survey from Bank of America, individuals aged 21 to 43 with at least $3 million in assets only have 25% of their portfolio invested in stocks — compared to 55% for wealthy investors aged above 43.
Most rich, young Americans (93%) say they plan to allocate more of their portfolio to alternatives in the next few years. So, what alternative investments are capturing the interest of these young millionaires?
Real estate: rich with opportunity
Real estate has long been considered a solid portfolio hedge, as rent and property values tend to increase with inflation. It’s no surprise that high-net-worth individuals — regardless of their age — see opportunity in this asset.
In the Bank of America survey, 31% of younger people said real estate presents the greatest opportunities for growth. Federal Reserve data also shows that the top 1% of Americans hold over $6 trillion in real estate assets.
First National Realty Partners allows individual investors access to grocery-anchored commercial real estate investments. With a $50,000 minimum investment, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, providing the potential of stable, positive cash flow without the worry of tenant costs and management.
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Gadd Crossing
Hixson, TN
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Crowe's Crossing
Stone Mountain, GA
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Bishops Corner
West Hardford, CT
These are a few examples of past properties or acquisitions from FNRP. For a full list of currently available properties, visit the FNRP deal room.
With FNRP, everyday investors can become the landlord of these big-name brands, accessing the potential for greater returns, diversification, and transparency.
How it works
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Step 1: FNRP provides resources to deepen your understanding of its investment opportunities, including property insights, due diligence documents, drone video footage, presentations from FNRP’s executive investment committee, and investment return calculators.
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Step 2: From the start, you’ll be assigned a dedicated Investor Relations associate who provides personalized support tailored to your unique goals.
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Step 3: Once you have the minimum investment of $50,000, you’ll confirm your investment with your dedicated Investor Relations associate, review and e-sign your documents and provide proof of accreditation.
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Step 4: FNRP’s investments are designed to provide investors with quarterly distributions from the cash flow generated by the properties they invest in.
A golden opportunity to hedge against inflation
The Bank of America survey revealed that among wealthy young investors, 45% own gold as a physical asset, and another 45% are interested in holding it.
Historically, gold has served as a hedge against inflation and market volatility. Many investors turn to “safe haven” assets like gold during economic and geopolitical instability to preserve their wealth.
The enthusiasm of investors has indeed propelled the price of gold to record levels, with the precious metal recently surging past the $3,500 per ounce mark.
There are lots of gold assets to choose from, including gold bars, coins and gold stocks.
But right now, opening a gold IRA could be particularly practical as part of your long-term strategy.
Opting for a gold IRA gives you the opportunity to hedge against market volatility by allowing you to invest directly in physical precious metals rather than stocks and bonds.
If you’d like to convert an existing IRA into a gold IRA, companies typically offer 100% free rollover. Others might offer free gold, silver or other metals up to a certain amount when you make a qualifying purchase.
If you think this might be the right investment for you, you can request a free information guide that can help you learn how to diversify your portfolio and secure your retirement fund.
How it works
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Step 1: Set up a self-directed IRA by filling out a standard custodial application.
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Step 2: You can fund your gold IRA through a rollover from an existing retirement account or through direct contributions. An experienced IRA expert will walk you through the process.
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Step 3: A specialist will help you create a personalized strategy – helping you choose the specific gold and silver products to include in your gold IRA. Plus, they will also help you choose an IRS-approved depository to securely store your precious metals.
Get started today with these industry-leading precious metals dealers:
Thor Metals
Get $20K in free metals
Preserve Gold
Up to $20K cashback
U.S. Gold Bureau
Up to $20K in free gold
Artwork: a creative way to diversify
More than 72% of younger investors (ages 21-43) believe it is no longer possible to achieve above-average investment returns by investing solely in traditional stocks and bonds. Art is one of the alternative investments that has captured the attention of smart investors.
With over $67 billion in annual transaction volume and a total estimated global value of $1.7 trillion, art represents a massive asset class, according to Deloitte.
In fact, fine art has historically outperformed the S&P 500, with contemporary art achieving an annual return of 11.5% from 1995 to 2023, compared to the S&P 500's 9.6% during the same period.
In the past, you had to be ultra-wealthy to invest in art, considering you needed to have the millions it takes to buy a painting at an auction.
But Masterworks has now changed that. This investment platform has made it possible for more investors to access this prized asset.
Instead of buying a single painting for millions of dollars, you can now invest in fractional shares of blue-chip paintings by renowned artists including Pablo Picasso, Basquiat and Banksy.
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Joan Mitchell
17.8% annualized net return
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Yayoi Kusama
17.6% annualized net return
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George Condo
21.5% annualized net return
These are a few examples of sold artworks from Masterworks. For a full list of currently available art, visit Masterworks' Price Database.
All you have to do is select how many shares you want to buy and Masterworks will take care of the rest.
How it works
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Step 1: Accredited investors can visit Masterworks.com, where they’ll be prompted to enter a few details about their portfolio and investment goals.
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Step 2: Investors can schedule a call with one of Masterworks’ registered investment representatives to determine which current art holdings match their investment goals. You can select one or many art pieces, buying fractional shares based on your interests and goals.
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Step 3: As soon as Masterworks sells a piece you invested in, you get a return from the net proceeds. While every artwork performs differently, overall, the past three exits — where Masterworks has acquired, held and eventually sold the artwork — delivered representative annualized returns of 17.6%, 17.8%, and 21.5%.
Private equity investing
Private equity refers to investments in companies that are not publicly traded on a stock exchange. This asset class involves investing directly in private companies, often during their growth stages or through buyouts.
It remains a popular choice among young investors seeking higher returns and more control over their investments.
The Bank of America survey showed that over 25% of young wealthy millionaires identified private equity as one of the greatest growth opportunities.
While private equity offers significant upside potential, it also requires a longer-term commitment and comes with higher risks than public equities.
Private equity is a broad category that spans a wide range of assets. So, finding a firm that can help you allocate your capital to the right assets could be a way to dip your toe into this lucrative category.
With Fundrise, you get access to an expansive portfolio of alternative investment opportunities spanning real estate, private debt and venture capital.
With over two million investors and managing over $7 billion in real estate assets alone, Fundrise is an accessible way to diversify your portfolio with the potential to yield dividends every quarter.
How it works
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Step 1: To get started, create an account with Fundrise. You’ll be asked for details about your financial background and investing style.
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Step 2: Fundrise will build a portfolio for you that aligns with your goals and risk tolerance.
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Step 3: Start investing with as little as $10.
*We earn a commission for this endorsement of Fundrise.
Cryptocurrency: more than a craze
Investors used to be skeptical about cryptocurrency, perhaps due to its speculative and highly volatile nature. However, it has now entered the mainstream, and especially with President Trump vowing to create a strategic national Bitcoin stockpile, crypto has surged to a global market cap of $3.72 trillion.
It’s no surprise that the wealthy millennials and Gen Z are fond of this asset class. In the Bank of America survey, 29% of younger people said cryptos offer the greatest opportunities for growth, while only 7% of the older group agreed.
Rich young Americans also allocated 15% of their portfolios to crypto, compared to 2% of the older generation.
If you’re interested in getting in on the crypto game, you can join the club through Robinhood Crypto, where you can buy and sell crypto without any trading fees or commissions.
What’s more — you can get up to a 1% deposit match on all crypto deposits and transfers.
Robinhood Crypto has the lowest average trading cost in the U.S., which means you could get up to 3.6% more crypto when you trade with Robinhood Crypto.
How it works
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Step 1: Create an account with Robinhood. You’ll be asked for a few details about yourself before your account will be verified.
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Step 2: Once you have a registered account, you can buy, hold or sell popular cryptocurrencies such as BTC, ETH, XRP, SOL, DOGE, ADA, and more for as little as $1.
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Step 3: You can also set up recurring buys on a fixed and automated schedule.
Phil is a writer at Moneywise, bringing a strong background in public relations, financial communications and copywriting. Educated in Cambridge, U.K., he has created content for several blue-chip companies, combining clarity with strategic insight.
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