Investing Across Generations: What Younger Americans Can Learn from Baby Boomers’ Wealth-Building Strategies

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A recent survey by IPX1031 highlights a significant generational gap in investing habits and financial outcomes. While an overwhelming 92% of Americans recognize investing as essential for building wealth, baby boomers have amassed far more than younger generations—even though many of them started investing later in life.

The survey shows that the average American has $246,000 in investments. Baby boomers, however, have nearly double that, holding an average of $472,000. Although boomers have had more years to grow their wealth, their approach still offers valuable lessons for younger investors.

Interestingly, the average baby boomer began investing at age 31, later than other generations. In comparison, Gen Zers started at 20, millennials at 26, and Gen Xers at 28.

“Many baby boomers began investing later due to higher mortgage rates, limited access to retirement plans early in their careers, and fewer investment tools when they entered the workforce,” said Scott Nathanson, executive vice president at IPX1031.

Despite their later start, boomers have accumulated more wealth than younger cohorts: $472,000 on average, compared to $311,000 for Gen X, $173,000 for millennials, and just $32,000 for Gen Z. Nathanson attributes much of this success to longer earning periods and the benefits of real estate appreciation.

The survey also revealed differences in investment goals across generations. Baby boomers and Gen Xers primarily invest to save for retirement. Millennials tend to focus on paying off debt, while Gen Zers are motivated by growing wealth. Real estate plays a particularly prominent role for boomers, with 86% considering it an essential part of long-term wealth-building. This is higher than Gen X (77%), millennials (75%), and Gen Z (81%).

For baby boomers planning for a retirement nest egg, real estate remains a powerful option. “Real estate investments are ideal for retirement planning because they can provide steady passive income, potential appreciation, and opportunities to defer capital gains taxes,” Nathanson explained. “When combined with a balanced portfolio of equities and fixed-income assets, this strategy can help sustain long-term income and protect purchasing power in retirement.”

The survey underscores that while younger generations have the advantage of starting earlier, there is much to learn from the disciplined and strategic approach of baby boomers, particularly when it comes to long-term wealth creation through diversified investments and real estate.