Gen Z investors most likely to jump on new investment trends, study finds

Another 19% of Gen Z describe themselves as “fast followers,” meaning they move quickly once a trend shows early traction. Together, more than a third of the youngest generation of investors are inclined to get into emerging opportunities before they are widely proven — a proportion that dwarfs that of older generations.

“Their willingness to act can be a strength, especially when paired with research, discipline, and a financial plan,” said John Roberts, chief field officer at Northwestern Mutual.

Risk appetite sets Gen Z apart

The survey data suggests that Gen Z’s early-mover tendencies reflect a broader comfort with risk. Some 37% of Gen Z respondents said they prefer taking calculated risks in pursuit of higher returns, the highest share of any generation. That compares with 36% of millennials, 29% of Gen X, and 14% of boomers.

The gap widens further when it comes to career risk. Nearly half of Gen Z  said they would risk changing jobs or starting a business in the hope of greater success. That figure drops to 39% among millennials, 31% among Gen X, and just 19% among boomers.

The findings arrive as advisors working with younger clients grapple with a distinct set of behavioral and financial characteristics that set Gen Z apart from the client archetypes many practices were built around.

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