N※N

Most 'Investment Savvy' Generation Revealed--the Answer May Surprise You

  //stocks-investing.news-articles.net/content/202 .. ration-revealed-the-answer-may-surprise-you.html
  Published in Stocks and Investing on Wednesday, September 10th 2025 at 14:20 GMT by Newsweek
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

Most Investment‑Savvy Generation Revealed: The Answer May Surprise You

A new survey released this week by Fidelity Investments has turned a common assumption on its head. While many of us expect the tech‑savvy Millennials or even the youngest Generation Z to be the most “investment‑savvy,” the data points to the Baby Boomers as the generation that is both most knowledgeable about investing and most active in the market. The study—drawn from a nationally representative sample of 7,500 adults—provides a nuanced look at how different cohorts approach risk, diversification, and the use of digital tools.

The Study at a Glance

Fidelity’s report, titled “Investing in the Digital Age: Generational Trends and Insights,” was carried in the Wall Street Journal and later republished on Fidelity’s own website. The survey asked respondents about:

1. Investment Knowledge – Their understanding of basic concepts such as risk tolerance, diversification, and market volatility.
2. Asset Allocation – The proportion of assets held in stocks, bonds, real‑estate, and alternative investments.
3. Use of Digital Platforms – Adoption of robo‑advisors, commission‑free trading apps, and other fintech tools.
4. Financial Advisor Relationships – Frequency of contact and trust in professional guidance.

The researchers defined investment‑savvy as a composite of high knowledge scores, diversified portfolios, and frequent, intentional use of digital and advisory tools.

Key Findings

The table shows that while Millennials and Gen Z have the highest digital‑tool adoption, Baby Boomers still outperform them in knowledge and portfolio size. Notably, Boomers allocate the largest portion of their wealth to equities—a sign that they are comfortable with long‑term risk.

Why Baby Boomers Lead

Experience with Market Cycles – Boomers grew up during the 1980s stock‑market boom, the 1990s tech surge, the 2008 financial crisis, and the 2020 pandemic rally. Their exposure to both bull and bear markets has translated into a nuanced risk assessment capability.

Diversification Mindset – The survey revealed that Boomers hold a mix of mutual funds, ETFs, bonds, and real‑estate. They also invest in “tax‑advantaged” vehicles such as 401(k)s, IRAs, and Roth accounts—reflecting a deep understanding of how to structure portfolios for long‑term growth.

Advisor Relationships – Over 70% of Boomers report consulting a financial advisor at least once a year, and 60% say they “always” or “often” rely on professional guidance. This trust in experts, coupled with a willingness to act on advice, fuels a disciplined investment approach.

Millennials and Gen Z: The Fast‑Gaining Generation

While Boomers are the most investment‑savvy overall, Millennials and Gen Z are the fastest‑growing groups of investors. The survey notes that:

• Millennials are the largest cohort of investors by number, with 62% having an investment account. They are most likely to use commission‑free apps such as Robinhood, Acorns, and Stash.
• Gen Z, despite lower average portfolio values, shows the highest rate of app usage (69%) and a strong preference for socially responsible or “impact” investing. The digital-native generation is rapidly moving from “investing for fun” to “investing for future.”

The rapid adoption of fintech tools among younger generations is encouraging; however, the survey cautions that many of these investors still lack comprehensive risk‑management knowledge. Fidelity’s analysts suggest that targeted financial education—especially around retirement planning and diversification—could help these cohorts convert their enthusiasm into long‑term wealth building.

Implications for Advisors and FinTechs

Financial advisors can take cues from the data by:

• Leveraging Trust – Building relationships with older clients can amplify investment performance, given their higher propensity for advisor reliance.
• Tailoring Education – Younger clients might benefit from micro‑learning modules on risk, diversification, and the importance of a long‑term horizon.
• Integrating Digital Platforms – A hybrid model that couples robo‑advisors for routine portfolio rebalancing with human advisory for complex tax or estate planning can meet the needs of all generations.

FinTech companies, on the other hand, should note that while Millennials and Gen Z are the primary users of apps, Baby Boomers are willing to use digital tools when paired with a clear value proposition—such as low fees, transparency, and the ability to connect to human advisors.

Final Takeaway

The answer to which generation is most investment‑savvy may surprise many: it’s the Baby Boomers. Their blend of market experience, diversified portfolios, and trusted advisor relationships sets them apart. However, the rapid rise of younger investors demonstrates that with the right educational support, the investment‑savvy horizon can expand well beyond the traditional age bracket.

For more detailed data, Fidelity’s full report can be accessed at their website (link) and is also summarized in a companion article on Bloomberg’s “Generational Investing” series.