Millionaires from Generation X, aged 28 to 42, allocate 23 percent of their portfolios "to alternative asset classes, such as hedge funds, private equity, investment real estate and commodities," according to a Northern Trust survey published Jan. 25.
Gen X millionaires are "proving to be more sophisticated in their investment style than older millionaire generations" because of their interest in alternative investments and new investment products, such as exchange-traded funds (ETFs) and structured notes, according to Northern Trust.
This is something that holds true among my circle of friends, many of whom are making their first forays into investing. They talk about their real estate deals, the small businesses they start and their Kiva loans, not the stocks they buy.
The thing that stuck out the most to me about this survey is that 41 percent of the Gen X millionaires who are aware of socially responsible investments have some money in them, according to Northern Trust; in contrast, only 18 percent of baby boomer millionaires who are aware of socially responsible investments have actually made any.
The younger generations have more time to spend on this planet. Maybe that's why they are more willing than older generations to invest their money to try to save it.