Millennial Investors Are Becoming Millionaires Fast: 4 Strategies They’re Using
March 30, 2025
Millennials’ wealth has been booming. According to Federal Reserve data, millennials’ total net worth has nearly quadrupled since 2019, increasing from $4.54 trillion in 2019 to $16.26 trillion in 2024.
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This increase in wealth is particularly notable for millennial investors. A Wealthfront study found that for their millennial investing clients, the proportion of millionaires increased by 144% over the past five years. This is a much larger increase than other generations experienced — the proportion of Gen X millionaires only increased by 31% over the same time period, and it decreased among baby boomers.
Here are the strategies millennial investors have been using to become millionaires.
The key factor driving millennials’ financial success is their approach to investing.
“When comparing asset allocations across generations, data shows that millennials are holding a larger portion of their wealth in equities than older generations were at the same age,” said David Fortunato, CEO of Wealthfront. “By taking advantage of investments that offer higher risk adjusted returns, millennials have been able to accumulate wealth faster than previous generations.”
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Millennials are also saving more aggressively than prior generations.
“Data shows that their savings rate is significantly higher when compared with the savings rate of older generations,” Fortunato said. “This is a trend we expect to continue as millennials advance in their careers and continue building wealth.”
Millennials’ housing wealth grew by $2.5 trillion between 2020 and 2024, The Wall Street Journal reported.
“Housing is the biggest item in most budgets, and whether those funds are used to buy or rent a home can have a large impact on long-term financial outcomes,” Fortunato said. “While renting is typically less costly on a monthly basis, buying a home offers a number of financial benefits that can help millennials reach their financial goals.
“Crucially, mortgage payments contribute to owning a long-term asset that has historically increased over time,” he continued. “Recent increases in home values have already benefited millennials in just the past few years.”
Among Wealthfront’s millennial clients, the average home value increased by more than 40% between March 2020 and February 2025.
“Data also shows that real estate wealth is expected to keep increasing as millennials age, making it a smart addition to a long-term wealth building strategy,” Fortunato said.
Since March 2020, the average millennial Wealthfront client’s IRA balance has grown by more than 110%; Gen X’s average IRA balance only grew by 52% over that time period.
“Retirement outcomes are greatly impacted by three key factors: asset allocation, tax optimization and fees,” Fortunato said. “IRAs are one of the most powerful tools to save for retirement because they are designed to address each of those factors — IRAs offer significant tax advantages, and when compared with 401(k) plans, IRAs typically have lower fees and offer more investment options.
“Millennials are about two decades away from retirement, which means this generation still has many years for the benefits of investing in an IRA to compound over time.”
Saving in IRAs is just one aspect of many millennials’ retirement planning strategy. Overall, the generation’s investors are on track to have long-term financial success.
“As millennials age, data shows that millennials’ retirement assets are expected to become the biggest contributor to their overall wealth when also including 401(k) assets,” Fortunato said. “In just the last five years, our millennial clients have increased their IRA assets by 110% on average, driven by consistent investments in Wealthfront’s diversified portfolios. By taking advantage of smart investment strategies, millennials are putting themselves in a strong position to be well-prepared for retirement.”
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