June 18, 2024 at 9:00 AM Eastern

B of A Private Bank Study of Wealthy Americans Finds Generational Divide in Investing, Giving and Preserving Wealth

Millennials and Gen Z Allocate Three Times More of Their Investment Portfolios to Alternative Investments Than Older Generations

NEW YORK, New York – High-net-worth individuals believe U.S. stocks offer the best opportunities for growing assets, but that conviction is less held by younger investors finds the 2024 Bank of America Private Bank Study of Wealthy Americans. Millennials and Gen Z are increasingly looking beyond the traditional stock and bond markets to build their wealth and are driving demand for everything from investment real estate and private equity to digital assets and gold.

 

Greatest opportunities for growth chart by age group

Greatest Opportunities for Growth

Listed in columns:

Wealthy Americans – Overall

  • 38 percent are US stocks
  • 32 percent are Real estate investments
  • 23 percent are Emerging market equities
  • 18 percent are International equities
  • 16 percent is Private equity
  • 13 percent are Companies focused on positive impact
  • 13 percent are Bonds

Age: twenty one to forty three

  • 31 percent are Real estate investments
  • 28 percent are Crypto/digital assets
  • 26 percent is Private equity
  • 24 percent is Personal company/brand
  • 22 percent are Direct investment into companies
  • 21 percent are Companies focused on positive impact
  • 17 percent are Bonds
  • 14 percent are US stocks

Age: forty four plus

  • 41 percent are US stocks
  • 32 percent are Real estate investments
  • 25 percent are Emerging market equities
  • 18 percent are International equities
  • 15 percent is Private equity
  • 15 percent are Direct investment into companies
  • 12 percent are Bonds
  • 4 percent are Crypto/digital assets

“We’re living through a period of great social, economic and technological change alongside the greatest generational transfer of wealth in history,” said Katy Knox, president of Bank of America Private Bank. “Our study shows that wealthy Americans are focused on diversification, long-term goals and making a lasting impact with their wealth.”   

Younger investors driving demand for alternative strategies

Seventy-two percent of younger investors (ages twenty one to forty three) believe it is no longer possible to achieve above average investment returns by investing solely in traditional stocks and bonds, compared to only twenty eight percent of investors over the age of 44 that hold the same view.

 

Investment allocations breakdown chart

Investment Allocations

Shown as two bar graphs:

Age: twenty one to forty three

  • 17 percent are Alternatives
  • 14 percent is Crypto
  • 28 percent is Stock
  • 19 percent are Bonds
  • 19 percent is Cash
  • 5 percent is Other

Age: forty four plus

  • 5 percent are Alternatives
  • 1 percent is Crypto
  • 55 percent is Stock
  • 19 percent are Bonds
  • 15 percent is Cash
  • 5 percent is Other

The study found that among younger high-net-worth investors:

  • forty seven percent of their portfolios are in stocks and bonds, far lower than investors over the age of 44 (seventy four percent).
  • seventeen percent of their investment portfolios are allocated to alternatives, compared to five percent allocated by older investors. Most (ninety three percent) say they plan to allocate more to alternatives in the next few years.
  • Nearly half (forty nine percent) own cryptocurrencies and another thirty eight percent are interested in owning it. They rank cryptocurrency among the top opportunity areas for growth, second only to real estate investments.
  • forty five percent own physical gold as an asset and another forty five percent are interested in owning it. Overall, forty one percent of the wealthy own (eighteen percent) or are interested in buying (twenty three percent) physical gold.

Passing on wealth: Gaps in planning for generational transfer of wealth

Despite the importance placed on sharing and sustaining family money, gaps in planning, communication and guidance could derail these well-intended goals.

  • One in five respondents report having experienced strain over an inheritance, including fifty four percent of younger respondents.
  • Half (fifty two percent) of wealthy Americans do not have the three basic elements of an estate plan, consisting of a will, advanced healthcare directive and durable power of attorney.
  • Nearly half (forty eight percent) of respondents have not considered hard assets, including real estate, art and collectibles and other tangible assets, in their estate plans.
  • fifty six percent of respondents have established a trust; however, only twenty seven percent say they understand trusts and their benefits very well.
  • sixty nine percent of parents of adult children have talked with their children about family wealth plans. They start those conversations only after their children have reached the age of 31, on average.

Giving with purpose, collecting with passion

Giving back is a near-universal trait among the wealthy, inspired mostly by a sense of responsibility (fifty two percent) and a desire to make a lasting positive impact (forty percent). However, where they give and other passions, such as owning art and collectibles, varies greatly by generation.

  • ninety one percent of the wealthy are ardent supporters of philanthropy. Younger donors are nearly two times more likely to support homelessness (forty one percent), social justice (thirty three percent) and the environment/climate change (thirty two percent) compared to older donors (twenty one percent, eighteen percent and seventeen percent, respectively).
  • forty percent of the wealthy overall either own or are interested in an art collection, including eighty three percent of millennials and Gen Z.
  • sixty five percent of study respondents, including ninety four percent of those under the age of 44, are interested in collectibles. Millennials and Gen Z are at least two times more likely than older generations to be collectors of watches (forty six percent), wine or spirits (thirty six percent), rare or classic cars (thirty two percent), sneakers (thirty percent) and antiques (thirty percent).

In addition to influencing the next generation, the “Great Wealth Transfer” will also contribute to women controlling more wealth than ever before, according to Bank of America Institute. Over the next decade, thirty trillion dollars in U.S. wealth is expected to be transferred to women influencing financial decision-making, philanthropic giving and more.

For an in-depth look at insights visit twenty twenty four Bank of America Private Bank Study of Wealthy Americans.

twenty twenty four Bank of America Private Bank study of wealthy Americans methodology

Escalent, an independent market research company, conducted an online survey on behalf of Bank of America Private Bank. The survey consisted of 1,007 high-net-worth (H N W) respondents throughout the U.S. Respondents in the study were at least 21 years of age with at least three million dollars in investable assets, excluding primary residence. The margin of error is plus or minus 3, reported at a ninety five percent confidence level. The respondents are a nationally representative sample of the U.S. high-net-worth population and not necessarily clients of Bank of America or its wealth and investment management businesses.

Bank of America Institute

Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in 2022, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, sustainability, and global transformation. The Institute leverages the depth and breadth of the bank’s proprietary data, from 69 million consumer and small business clients, 57 million verified digital users, four point one trillion dollars in total payments in 2023 and one point two seven trillion dollars in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.

Bank of America

Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 A T Ms (automated teller machines) and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (N Y S E B A C).

Reporters may contact

Julia Ehrenfeld, Bank of America
Phone: one six four six eight five five three two six seven
julia.ehrenfeld@bofa.com

Categories

List with 1 items.

Media Resources

To download files for editorial use, visit Wealth in our media content library.

June 18, 2024 at 9:00 AM Eastern

B of A Private Bank Study of Wealthy Americans Finds Generational Divide in Investing, Giving and Preserving Wealth

Millennials and Gen Z Allocate Three Times More of Their Investment Portfolios to Alternative Investments Than Older Generations

NEW YORK, New York – High-net-worth individuals believe U.S. stocks offer the best opportunities for growing assets, but that conviction is less held by younger investors finds the 2024 Bank of America Private Bank Study of Wealthy Americans. Millennials and Gen Z are increasingly looking beyond the traditional stock and bond markets to build their wealth and are driving demand for everything from investment real estate and private equity to digital assets and gold.

 

Greatest opportunities for growth chart by age group

Greatest Opportunities for Growth

Listed in columns:

Wealthy Americans – Overall

  • 38 percent are US stocks
  • 32 percent are Real estate investments
  • 23 percent are Emerging market equities
  • 18 percent are International equities
  • 16 percent is Private equity
  • 13 percent are Companies focused on positive impact
  • 13 percent are Bonds

Age: twenty one to forty three

  • 31 percent are Real estate investments
  • 28 percent are Crypto/digital assets
  • 26 percent is Private equity
  • 24 percent is Personal company/brand
  • 22 percent are Direct investment into companies
  • 21 percent are Companies focused on positive impact
  • 17 percent are Bonds
  • 14 percent are US stocks

Age: forty four plus

  • 41 percent are US stocks
  • 32 percent are Real estate investments
  • 25 percent are Emerging market equities
  • 18 percent are International equities
  • 15 percent is Private equity
  • 15 percent are Direct investment into companies
  • 12 percent are Bonds
  • 4 percent are Crypto/digital assets

“We’re living through a period of great social, economic and technological change alongside the greatest generational transfer of wealth in history,” said Katy Knox, president of Bank of America Private Bank. “Our study shows that wealthy Americans are focused on diversification, long-term goals and making a lasting impact with their wealth.”   

Younger investors driving demand for alternative strategies

Seventy-two percent of younger investors (ages twenty one to forty three) believe it is no longer possible to achieve above average investment returns by investing solely in traditional stocks and bonds, compared to only twenty eight percent of investors over the age of 44 that hold the same view.

 

Investment allocations breakdown chart

Investment Allocations

Shown as two bar graphs:

Age: twenty one to forty three

  • 17 percent are Alternatives
  • 14 percent is Crypto
  • 28 percent is Stock
  • 19 percent are Bonds
  • 19 percent is Cash
  • 5 percent is Other

Age: forty four plus

  • 5 percent are Alternatives
  • 1 percent is Crypto
  • 55 percent is Stock
  • 19 percent are Bonds
  • 15 percent is Cash
  • 5 percent is Other

The study found that among younger high-net-worth investors:

  • forty seven percent of their portfolios are in stocks and bonds, far lower than investors over the age of 44 (seventy four percent).
  • seventeen percent of their investment portfolios are allocated to alternatives, compared to five percent allocated by older investors. Most (ninety three percent) say they plan to allocate more to alternatives in the next few years.
  • Nearly half (forty nine percent) own cryptocurrencies and another thirty eight percent are interested in owning it. They rank cryptocurrency among the top opportunity areas for growth, second only to real estate investments.
  • forty five percent own physical gold as an asset and another forty five percent are interested in owning it. Overall, forty one percent of the wealthy own (eighteen percent) or are interested in buying (twenty three percent) physical gold.

Passing on wealth: Gaps in planning for generational transfer of wealth

Despite the importance placed on sharing and sustaining family money, gaps in planning, communication and guidance could derail these well-intended goals.

  • One in five respondents report having experienced strain over an inheritance, including fifty four percent of younger respondents.
  • Half (fifty two percent) of wealthy Americans do not have the three basic elements of an estate plan, consisting of a will, advanced healthcare directive and durable power of attorney.
  • Nearly half (forty eight percent) of respondents have not considered hard assets, including real estate, art and collectibles and other tangible assets, in their estate plans.
  • fifty six percent of respondents have established a trust; however, only twenty seven percent say they understand trusts and their benefits very well.
  • sixty nine percent of parents of adult children have talked with their children about family wealth plans. They start those conversations only after their children have reached the age of 31, on average.

Giving with purpose, collecting with passion

Giving back is a near-universal trait among the wealthy, inspired mostly by a sense of responsibility (fifty two percent) and a desire to make a lasting positive impact (forty percent). However, where they give and other passions, such as owning art and collectibles, varies greatly by generation.

  • ninety one percent of the wealthy are ardent supporters of philanthropy. Younger donors are nearly two times more likely to support homelessness (forty one percent), social justice (thirty three percent) and the environment/climate change (thirty two percent) compared to older donors (twenty one percent, eighteen percent and seventeen percent, respectively).
  • forty percent of the wealthy overall either own or are interested in an art collection, including eighty three percent of millennials and Gen Z.
  • sixty five percent of study respondents, including ninety four percent of those under the age of 44, are interested in collectibles. Millennials and Gen Z are at least two times more likely than older generations to be collectors of watches (forty six percent), wine or spirits (thirty six percent), rare or classic cars (thirty two percent), sneakers (thirty percent) and antiques (thirty percent).

In addition to influencing the next generation, the “Great Wealth Transfer” will also contribute to women controlling more wealth than ever before, according to Bank of America Institute. Over the next decade, thirty trillion dollars in U.S. wealth is expected to be transferred to women influencing financial decision-making, philanthropic giving and more.

For an in-depth look at insights visit twenty twenty four Bank of America Private Bank Study of Wealthy Americans.

twenty twenty four Bank of America Private Bank study of wealthy Americans methodology

Escalent, an independent market research company, conducted an online survey on behalf of Bank of America Private Bank. The survey consisted of 1,007 high-net-worth (H N W) respondents throughout the U.S. Respondents in the study were at least 21 years of age with at least three million dollars in investable assets, excluding primary residence. The margin of error is plus or minus 3, reported at a ninety five percent confidence level. The respondents are a nationally representative sample of the U.S. high-net-worth population and not necessarily clients of Bank of America or its wealth and investment management businesses.

Bank of America Institute

Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in 2022, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, sustainability, and global transformation. The Institute leverages the depth and breadth of the bank’s proprietary data, from 69 million consumer and small business clients, 57 million verified digital users, four point one trillion dollars in total payments in 2023 and one point two seven trillion dollars in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.

Bank of America

Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 A T Ms (automated teller machines) and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (N Y S E B A C).

Reporters may contact

Julia Ehrenfeld, Bank of America
Phone: one six four six eight five five three two six seven
julia.ehrenfeld@bofa.com

Categories

List with 1 items.

Media Resources

To download files for editorial use, visit Wealth in our media content library.

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