Welcome back to the Net Worth Podcast.
Speaker 1: This week, we are diving into CJ Follini’s Millennial Money Predictions for 2025.
Speaker 2: It’s a really fascinating look at what these powerful shifts mean for your net worth and how you can truly adapt and thrive.
Speaker 1: Check out the full edition on our website wearenoyack.com.
Speaker 2: That’s wearenoyack.com.
Speaker 1: As we step into 2025, it’s undeniably clear the financial landscape for millennials and henry-wise.
Speaker 2: for those less familiar, that’s high earners not rich yet.
Speaker 1: It’s just evolving at lightning speed.
Speaker 2: This edition of Noyack Wealth Weekly lays out some truly uh groundbreaking predictions about how this demographic is redefining wealth.
Speaker 1: And what’s fascinating here is that this isn’t just about understanding financial jargon or market shifts.
Speaker 2: It’s really about connecting these powerful trends directly to how you can strategically build, grow, and importantly, protect your net worth.
Speaker 1: It’s really about empowering you to proactively take control of your financial future, no matter what the market throws your way.
Speaker 2: OK, let’s unpack this then.
Speaker 1: The first prediction from this edition talks about AI beginning to revolutionize wealth management, portfolio building too.
Speaker 2: We’ve heard a lot about AI, but how does this actually translate into something tangible for our net worth?
Speaker 1: Is it just like a fancy robo advisor or something genuinely different?
Speaker 2: That’s a great question.
Speaker 1: And it really is key to understanding the evolution here.
Speaker 2: mean, while robo advisors automated basic rebalancing, right, this prediction suggests AI goes much, much deeper.
Speaker 1: We’re moving towards what you might call hyper-personalized portfolios.
Speaker 2: Imagine AI crafting an investment strategy that’s not just tailored to your general risk tolerance, but it literally adapts to your specific life events in real time.
Speaker 1: OK, like what kind of events?
Speaker 2: Well, for instance, say you tell your financial AI, I’m saving for a wedding in 18 months, or maybe a down payment on a house in two years.
Speaker 1: The AI might then automatically de-risk that specific portion of your portfolio as the deadline gets closer.
Speaker 2: I see.
Speaker 1: Protecting those funds.
Speaker 2: Exactly.
Speaker 1: Ensuring those funds are protected.
Speaker 2: Even while maybe your long-term growth investments stay more aggressive, this dynamic life stage specific optimization, that’s the real game changer here.
Speaker 1: It makes your portfolio more efficient.
Speaker 2: It reduces unnecessary risk when goals are near and keeps your investments laser focused on your actual life goals, not just abstract returns.
Speaker 1: That’s a significant impact on your ability to reliably hit your net worth goals.
Speaker 2: That level of responsiveness does sound incredibly powerful.
Speaker 1: And speaking of cutting edge tech, this edition also gets into tokenized funds.
Speaker 2: Now here’s where it gets really interesting for a lot of listeners, I think, because it brings concepts like blockchain into, well, traditional investing.
Speaker 1: How do these redefine investing for the average person and what’s the tangible net worth impact there?
Speaker 2: Right, so if we connect this to the bigger picture, tokenized funds leveraging blockchain technology, they are fundamentally transforming access.
Speaker 1: Access to asset classes that were historically, well, pretty much out of reach for most individual investors.
Speaker 2: Okay, so break that down.
Speaker 1: Blockchain tokenized funds.
Speaker 2: Yeah, so for those less familiar, think of blockchain as just an incredibly secure, transparent digital ledger.
Speaker 1: Okay.
Speaker 2: When we talk about tokenized funds, we’re basically taking a piece of a real world asset.
Speaker 1: Could be a fraction of a commercial building, maybe a share in a venture capital fund, or even a percentage of say, a valuable piece of fine art and representing its ownership as a digital token on this blockchain.
Speaker 2: it.
Speaker 1: Like a digital deed for a small piece.
Speaker 2: Pretty much, yeah.
Speaker 1: And what this means for your net worth is crucial.
Speaker 2: It democratizes access.
Speaker 1: You can now own tiny affordable shares of assets that used to require know, millions just to get in the door.
Speaker 2: This enables fractional ownership, 24/7 trading potentially, and it significantly lowers the cost of entry, transaction fees too.
Speaker 1: So for your net worth, these tools offer one, crucial liquidity, allowing you to buy or sell these fractions more easily, and two, vital diversification.
Speaker 2: Diversification into non-traditional asset classes.
Speaker 1: It’s really a way to boost your net worth by getting exposure to high potential investments that were previously exclusive.
Speaker 2: Okay, so…
Speaker 1: Moving beyond the, let’s say, flashy tech, this edition also points to a growing millennial DIY investing movement.
Speaker 2: It says over 65 % of millennials are expected to actively manage their investments in 2025.
Speaker 1: That sounds like a lot of control.
Speaker 2: But how does this self-empowerment truly tie into building a stronger net worth?
Speaker 1: What’s driving this?
Speaker 2: Well, it definitely raises an important question about shifting financial behaviors, doesn’t it?
Speaker 1: and this desire for greater agency.
Speaker 2: It’s not just about doing it yourself just for the sake of it, I don’t think.
Speaker 1: It’s the growth of these really user-friendly investment apps, often with integrated financial education tools, even decision support features.
Speaker 2: It means you can now simulate strategies, learn on the fly, understand the mechanics before you even risk real money.
Speaker 1: Right, so the tools are better.
Speaker 2: The tools are much better.
Speaker 1: And what’s driving it?
Speaker 2: I think it’s a mix of that accessibility, transparency, and maybe a generational desire for direct control.
Speaker 1: Especially after seeing previous market volatility, the net worth impact is pretty clear and profound actually.
Speaker 2: Empowerment through knowledge and direct control generally leads to better, more informed decisions.
Speaker 1: When you understand your investments, when you’re actively engaged, those informed decisions compounded over time, they directly fuel stronger network.
Speaker 2: Goals-based wealth building taking center stage.
Speaker 1: It even quotes Milton Friedman saying, seeking more money for money’s sake only makes one a fetishist of little green paper.
Speaker 2: What does this kind of philosophical shift really mean for our financial journey and for how we measure success?
Speaker 1: This really is a profound shift in mindset.
Speaker 2: It speaks volumes about uh millennial values, I think.
Speaker 1: Investment success is being redefined.
Speaker 2: It’s moving away from simply chasing the highest percentage return towards achieving tangible life goals.
Speaker 1: You’ll see more and more financial platforms, advisors too, asking for your why, your motivations, your dreams, your purpose, before they even ask for your desired returns or specific assets.
Speaker 2: It’s really about designing a financial life, not just a portfolio.
Speaker 1: And the addition highlights that goal-oriented strategies, well, they tend to yield better outcomes, precisely because they are designed with purpose.
Speaker 2: This leads to increased discipline.
Speaker 1: I mean, you’re less likely to panic sell during a market dip if you remember you’re saving for a kid’s education, right?
Speaker 2: Not just chasing a number.
Speaker 1: Yeah, makes sense.
Speaker 2: It creates this strong alignment between your everyday financial decisions and your long-term growth.
Speaker 1: Ultimately, it’s about building a net worth that genuinely serves your life, facilitates your definition of wealth, not the other way around.
Speaker 2: That’s a powerful way to frame it.
Speaker 1: And it leads us naturally, I think, to alternative investments surging in popularity.
Speaker 2: We’re talking commercial real estate, venture capital, fine art.
Speaker 1: even collectibles.
Speaker 2: We also hear about the great wealth transfer underway.
Speaker 1: How does that maybe tie into why millennials are specifically embracing these types of assets, moving beyond just stocks and bonds?
Speaker 2: beyond the generational wealth transfer, which certainly opens up new capital for investment, no doubt millennials are actively seeking diversification.
Speaker 1: That’s key.
Speaker 2: And they’re looking for opportunities that feel maybe more tangible or perhaps align better with their personal passions and priorities.
Speaker 1: Right.
Speaker 2: Traditional stocks and bonds, they’re still foundational, of course.
Speaker 1: But this addition reveals a growing appetite for assets that can act as, a hedge against inflation or offer different risk return profiles or maybe just resonate more with their values.
Speaker 2: Investing in commercial real estate, for example, it can feel more concrete than a stock certificate, can’t it?
Speaker 1: Yeah, you can almost touch it.
Speaker 2: Exactly.
Speaker 1: And venture capital lets them support innovative companies they actually believe in.
Speaker 2: The net worth impact here is pretty clear.
Speaker 1: By widening your asset base beyond just traditional equities and fixed income, you create multiple growth avenues.
Speaker 2: This can potentially enhance your net worth, especially during periods of equity market volatility.
Speaker 1: It provides stability and alternative paths to appreciation that just weren’t as accessible or common before.
Speaker 2: Now, a topic that’s always fascinating, and let’s be honest, sometimes a bit controversial, social media influencers shaping financial decisions.
Speaker 1: This edition says over a third, 33%.
Speaker 2: of millennials turn to platforms like TikTok for financial education.
Speaker 1: What’s the net worth impact here, both the good and the potentially bad?
Speaker 2: Yeah, this is definitely a dual edged sword, no question.
Speaker 1: On one hand, social media has sort of democratized financial information.
Speaker 2: It makes it incredibly accessible, often presented in really engaging, digestible formats, short videos, infographics.
Speaker 1: It can be a source of novel ideas, introduce complex topics in an approachable way.
Speaker 2: And that’s a positive for financial literacy broadly.
Speaker 1: However, and this is a big year of stuff, however, as this edition rightly emphasizes, it’s absolutely crucial to vet the advice carefully, critically.
Speaker 2: Right, not all influencers are created equal.
Speaker 1: Not even close.
Speaker 2: Not all content is reliable, and many influencers, frankly, lack professional qualifications or might have hidden agendas.
Speaker 1: Affiliate links promoting dubious products.
Speaker 2: The pitfall is that unvetted, misleading, or maybe just one size fits all advice can lead to poor, often emotionally driven decisions.
Speaker 1: And those could severely impact your net worth, negatively.
Speaker 2: So the takeaway?
Speaker 1: The key takeaway for your net worth is this.
Speaker 2: Use social media maybe as a starting point for ideas, sure.
Speaker 1: But always cross-reference.
Speaker 2: Check credible sources.
Speaker 1: Establish financial news outlets.
Speaker 2: And for personalized advice, talk to verified financial professionals.
Speaker 1: Critical thinking and just a healthy dose of skepticism are essential here.
Speaker 2: Your net worth really depends on it.
Speaker 1: OK, so given all this new information, these complex decisions, the need for careful vetting.
Speaker 2: m How do we balance it all?
Speaker 1: This edition proposes hybrid advisory models, blending tech and human insight.
Speaker 2: What does that balance actually look like in practice for someone managing their wealth?
Speaker 1: Precisely.
Speaker 2: And why choose, right?
Speaker 1: When you can actually have the best of both worlds.
Speaker 2: Hybrid advisory services, they combine the incredible convenience and frankly the data crunching power of AI powered insights for the quicker, more routine decisions.
Speaker 1: Like rebalancing?
Speaker 2: Exactly.
Speaker 1: Like rebalancing a simple portfolio or managing automatic savings transfers, stuff like that.
Speaker 2: But critically, It pairs that tech with the nuanced expertise, the empathy of human advisors for the major life changes of the really high stakes, complex investments.
Speaker 1: Think about it.
Speaker 2: An AI can track market data instantly, 247.
Speaker 1: But a human advisor understands your emotional response to a market downturn.
Speaker 2: They can guide you through a divorce, help structure a complex estate plan, understand the why we talked about earlier.
Speaker 1: This balance helps optimize both efficiency and the quality of advice.
Speaker 2: It allows you to make smarter, more responsive financial choices across the board.
Speaker 1: Ultimately, it maximizes your network potential by ensuring you have smart guidance for every type of decision, big or small.
Speaker 2: Let’s shift gears slightly to something really foundational, retirement.
Speaker 1: This edition suggests retirement interest is definitely deepening among millennials with over 60 % actively saving now.
Speaker 2: What specific trends should we be looking for here that directly impact our long-term net?
Speaker 1: Oh, this is such a critical area because early and consistent saving for retirement is, well, it’s the absolute backbone of future net worth.
Speaker 2: The trends highlighted in this edition point to two key areas, I think.
Speaker 1: First, increased use of sophisticated robo-advisors specifically for retirement savings.
Speaker 2: And second, expanded access to employer sponsored financial education programs.
Speaker 1: OK, tell me more about the robo side for retirement.
Speaker 2: Well, the robo-advisors for retirement, they’re evolving.
Speaker 1: They now offer more dynamic portfolio management within retirement accounts themselves.
Speaker 2: It makes it easier for individuals to kind of set it and forget it, or mostly forget it, while still benefiting from professional style management.
Speaker 1: Tax loss harvesting, glide paths, and the employer education piece is bridging critical knowledge gaps.
Speaker 2: It’s helping more millennials understand the sheer power of compound interest and the importance of maxing out their 401k or other workplace plans if they can, getting that employer match.
Speaker 1: Essentially, yes.
Speaker 2: The net worth impact is profound.
Speaker 1: Early, disciplined investing in dedicated retirement vehicles, 401k US, IRAs, it just accelerates compound growth exponentially.
Speaker 2: forms the essential, hopefully untouchable core of your future net worth.
Speaker 1: It’s really about securing your long-term financial freedom.
Speaker 2: And finally, philanthropy.
Speaker 1: Going digital and impact-focused.
Speaker 2: How does integrating charitable giving into financial plans actually strengthen our net worth beyond just contributing to a good cause?
Speaker 1: It almost sounds counterintuitive.
Speaker 2: It does sound counterintuitive, but it’s a fantastic point and often misunderstood.
Speaker 1: This tradition highlights that a significant chunk, 58 % of millennials, are actively planning for philanthropy right alongside their traditional investments.
Speaker 2: It’s part of the plan.
Speaker 1: And digital platforms, like donor-advised funds, they make it easier than ever to align your giving with your personal values, track the impact, manage donations efficiently.
Speaker 2: OK, but the strengthening net worth part.
Speaker 1: Right.
Speaker 2: What’s often overlooked is that philanthropy, when done smartly, when done tax effectively, doesn’t just serve your values.
Speaker 1: It can strategically strengthen your overall financial planning.
Speaker 2: For example, donating appreciated assets like stocks you’ve held for over a year, or maybe even real estate directly to a charity or a donor-advised fund.
Speaker 1: That can allow you to avoid paying capital gains taxes on those assets’ appreciation.
Speaker 2: Ah, the tax angle.
Speaker 1: Exactly.
Speaker 2: While still potentially claiming a charitable deduction for the fair market value.
Speaker 1: This kind of intelligent giving can significantly reduce your taxable income, which preserves more of your wealth.
Speaker 2: It’s about building a financial plan that’s holistic, one that allows you to advance purpose while simultaneously enriching both your net worth and your lasting legacy.
Speaker 1: wrapping this all up, what does it all mean?
Speaker 2: It really sounds like 2025 is shaping up to be a year where millennials are truly reshaping wealth management, not just in terms of the numbers in their accounts, but also the kind of deeper purpose behind those numbers.
Speaker 1: Indeed, I think the bottom line from this edition of Noyack Wealth Weekly is really clear.
Speaker 2: Technology-driven personalization, especially with AI, it’s optimizing returns and risk in ways we haven’t seen before.
Speaker 1: Access to alternative assets is broadening growth potential and uh diversification.
Speaker 2: Self-directed tools, combined with these smart hybrid advisory models, they empower truly informed decisions and perhaps most importantly, these goal-based impact-aligned approaches.
Speaker 1: They keep investing purposeful, moving beyond just more money towards building vibrant value-driven financial legacies.
Speaker 2: That’s a really powerful thought.
Speaker 1: So for you, the listener, as you navigate these incredibly dynamic shifts we’ve talked about, how might embracing just one of these trends maybe something you hadn’t really considered before, whether it’s exploring tokenized assets or maybe rethinking your investment why, or even strategically integrating philanthropy, how might that fundamentally alter your financial trajectory and your personal definition of what a truly rich life means to you?
Speaker 1: Remember to subscribe to Noyack Wealth Weekly on our website, wearenoyack.com.
Speaker 2: That’s wearenoyack.com to read the article behind today’s conversation and to get our weekly newsletter straight in your inbox.
