Posted: Nov 9, 2021 13:03 GMT
This case is an example of how wealthy millennials today choose to manage their investments themselves using cheap and easy-to-use digital platforms.
A young American, owner of a start-up, has invested almost all of his money in cryptocurrencies and has rejected the supervision of financial advisers, in what appears to be a trend that wealthy millennials follow when it comes to managing your wealth, according to The Wall Street Journal.
This is Michael Martocci, a 26-year-old young man who lives in Miami (Florida, USA) and who runs SwagUp, a company dedicated to marketing items such as handbags, mugs and T-shirts.
Martocci considers that digital platforms are good ways to guide investment, so he spends 90% of his money on the purchase of cryptocurrencies. Like most wealthy young people of his generation, he prefers higher-risk, higher-return investments that could potentially double or triple his money, rather than those of moderate returns that characterize older generations.
On the other hand, the newspaper revealed that the young man refuses to pay for the consulting of renowned financial advisers, such as the Goldman Sachs agency, because he considers that he is capable of carrying out his own economic management. “It’s easy to manage 500,000 or a million dollars yourself”Martocci said, explaining that he monitors his investments of hundreds of thousands of dollars by accessing the Robinhood Markets application on his phone, a job that takes him an hour a week.
This case is an example that today rich young people are choosing to do without financial advisers in the traditional way, and are choosing to control their investments themselves through digital platforms that are cheap and easy to use, explains WSJ.
In 2019, 70% of U.S. households that had a net worth of $ 500,000 or more, and that were headed by someone under the age of 45, had a largely self-directed investment style, according to research firm Aite -Novarica Group, cited by the WSJ. Similarly, almost half of the households were willing to assume a higher than average level of risk, in exchange for an above-average rate of return.
The generation of ‘millennials’, not only is more capable of controlling their own wealth, many want to invest in novel assets such as bitcoin, ether and new technology companies that have gained popularity in recent years, and that are out of reach of conventional advisers.
In any case, Martocci stressed that in the event of a windfall from the sale of SwagUp, he would seek the help of a financial advisor.