Millennials Are Doing It Their Way

By Krisanth Sivarajh – Director of Project Management at RACE

Millennials like me are standing on the precipice of the largest generational wealth transfer in history. We’re about to get our hands on $84 trillion in inheritance from our baby boomer parents. This tsunami of wealth will create a new wave of high net-worth individuals (HNWIs) and reshape the financial landscape, yet 72% of Americans feel overwhelmed by the idea of managing this sudden and massive influx of money. So what do we do?

Traditional investments aren’t always attractive because of the classic barriers to getting involved: you need a lot of capital and you need to be prepared to put it away for a long time. So why not cryptocurrencies? Well, the technology is interesting, but don’t they all just collapse when you’re least expecting it?

But there is one other blockchain-enabled application that could make the difference: fractional ownership. Imagine being able to buy a small part of an apartment, of a painting, of a luxury watch, instead of having to purchase the whole thing. Suddenly, and in ways that we digital natives understand, we no longer need to be multi-millionaires to build diversified portfolios with impressive returns.

Why Millennials Love Tech-Driven Assets
So why are we millennials turning to digital assets? Because we’ve grown up with technology at our fingertips. From AI to social media, we use the latest tech to manage our lives, and the more direct the interaction, the better. It’s this kind of openness that has led 91% of high-net-worth millennials under 40 to invest in digital assets.

We crave seamless digital experiences that match our style diversification and stable cash flow. The crypto market may be buzzing, but the volatility can still be a turn-off. That’s where tokenization comes in. It offers a more stable and accessible entry point into the digital asset world, appealing to those of us who want the benefits without the rollercoaster ride.

Our portfolios blend the best of both worlds. We’re not just sticking to traditional investments. We’re integrating tech-driven assets that reflect our digital roots.

From Real Estate to Art: The Advantages of Going Fractional
Fractional investment is our ticket to a diversified, dynamic portfolio. We can now invest in a mix of assets beyond the traditional stocks and bonds. Real estate, infrastructure, luxury items, fine art, and trade financing are all on the table, allowing us to generate steady income streams with just a fraction of ownership. Unlike crypto, tokenized investments are backed by real-world assets, making them more tangible and secure.

Think of blockchain as the financial layer of the internet. It stores the history of assets on-chain, so everyone can see where an asset has been and who has owned it. This kind of transparency builds trust and security in the investment process. But let’s not kid ourselves: all investments have their risks and complexities. When you own just a fraction of an asset, you’re sharing control over it with other investors, which can sometimes limit your influence. That’s why the reliability and security of the platforms we use for tokenized investments are also so crucial. Reputable platforms can help us manage risks associated with platform failures or security breaches.

Every asset has its own set of challenges: liquidity, valuation, management, and maintenance. Real estate, infrastructure, and trade financing are no different. Blockchain and tokenization aim to tackle these issues by creating secondary market opportunities and reducing friction by streamlining intermediary layers. Sometimes, they can even cut out these layers entirely. As we navigate this massive wealth transfer, fractional ownership and tokenized assets offer exciting new ways to build a diversified and secure investment strategy.

Our Turn, Our Time: Investing on Our Terms
We’re not just inheriting wealth. We’re redefining it. We want investments that fit our tech-driven lives. And fractional ownership allows us to spread our wealth across various assets, from real estate to art and collectibles, through tokenization. This not only diversifies our portfolios but also offers stability and growth. As we navigate this massive wealth transfer, fractional ownership and tokenized assets provide a fresh new path for managing and growing our inheritance. The future of investing is here, and it’s about making smart, tech-savvy moves.