The Next Gen Investor Report

Times are a-changin’. The traditional 60/40 stock-bond portfolio of yesterday has fallen out of favour. Young Australians are taking control of their finances in a market with negligible interest rates and property prices that are out of reach for many. In fact, a lot of younger Aussies are the first to ever own a stock in their family.

Greater access to markets, and freely available financial education online, has turned anyone with a bit of entrepreneurial spirit into an investor. The barriers have been broken. The idea that the markets are for the few is dead.

We interviewed 1000 Australian investors to unearth their values, attitudes and beliefs towards money and wealth. What did we find? 

Generation I-nance

81% of investors are truly self-directed, not relying on an advisor or to guide their decisions. That isn’t to say they aren’t educated. 87% of investors would consult an online source before allocating their capital.

Quality financial information has never been more accessible. Annual reports and financial statements are available at a click. Online communities share research theses and discuss trade ideas. From Youtube to Twitter an entirely new culture of investing is formed with incredibly unique and engaging content. Offering new investors a wealth of experience and stories to build upon.

The next generation is realising wellbeing spans further than a bank balance. 63% of females and 50% of males say it is important to invest in their emotional and mental well-being. #HealthAndWealth

Be Your Own Boss

76% of Aussies between 18-29 want to be their own boss. The traditional uni to graduate to associate to manager progression is falling out of favour. Decades of working under someone else isn’t so appealing.

56% of the group wants to forge their own path. Be it a small business, a side hustle attached to a part-time job, the FIRE movement…there are so many options out there that make the 40-hour workweek an avoidable career path.

Generally, those between 30-40 tend to desire entrepreneurship less than their younger counterparts. Kids and a mortgage normally make the 9-5 and the stable salary that comes with it more appealing. That being said, 67% of this cohort still wants to be their own boss. 

The Financial Future is Female

Women are just as likely to be self-directed investors as men.

Over half of all young female investors are holding stocks; a number that is only growing as females continue to forge a path towards financial independence. Something they are striving for, 68% of young females want to be their own boss.

More financial independence opens females to so many more opportunities. Almost three quarters (70%) of women think life skills and experience are more important than higher education and university. 55% of females would rather retire older, with more money.

Love and Money

Finances can be a touchy subject in a relationship. Differences in incomes can lead to tension and control imbalances. The next generation however is breaking these traditional money taboos.

To start, 74% of young female investors want to be their own primary financial providers. This desire is empowered by the fact 75% of young investors don’t see money as a taboo subject anymore. Discussing salaries, savings and investments is the new norm. A rising tide lifts all ships. This transparency allows young investors to better understand investing, what a fair wage is, how to allocate their paychecks. It only contributes to the goal of 70% of young Aussies: reach complete financial independence.

The Calm Before the Super Storm

Traditional industry super funds are perfectly suitable solutions for some, but 77% of young Aussie investors are open to non-traditional super options. Underperformance, high fees and a complete lack of control make a self-managed super fund an appealing option for the majority. 24% of the cohort is not confident in the future of their super fund which explains the 44% of young investors who want to run an SMSF.