# Wealth Tech is Changing How We Invest Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-03-22 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: How Millennials are Redefining Investing: From Wall Street Meta Description: Discover the changing landscape of investing, from Leonardo DiCaprio's Wolf of Wall Street to Reddit rally disruptions. Explore how technology is reshaping URL: https://financedigest.com/wealth-tech-is-changing-how-we-investhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1276312812-1736815940820-compressed.jpg) _![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/607-1736815940884-compressed.jpg)_ _By **Sachin Jhangiani** co-founded_ _[Elevate.Money](https://www.elevate.money/)_ When the oldest millennials were 31, they were watching Leonardo DiCaprio’s portrayal of Jordan Belfort’s penny stock fraud in 2013’s _Wolf of Wall Street_. As a former Wall Streeter, I can confirm that what the movie portrayed was on the money: boiler rooms of investors and brokers shouting, buying and selling stocks and slamming down phones to proclaim huge profits. Whether you learned about the market from Leo or Dan Aykroyd’s explanation of orange juice futures in _Trading Spaces_, how the modern investor engages with the market has changed. Today, [investing stories are making headlines as stock in strip mall tenants like Game Stop become news thanks to amateur investors](https://www.financedigest.com/why-are-investors-checking-out-of-uk-buy-to-let-and-checking-in-to-hotel-investment.html "WHY ARE INVESTORS CHECKING OUT OF UK BUY-TO-LET AND CHECKING IN TO HOTEL INVESTMENT?"). These individuals [rallied the purchase of a no-news stock](https://www.financedigest.com/stocks-sag-as-hawkish-fed-cools-china-rally-awaits-us-jobs-data.html "Stocks sag as hawkish Fed cools China rally; awaits US jobs data") through real time chats and conversations on Reddit. The rally in January 2021 thwarted short-stock [selling investors and disrupted the market in an attempt to draw attention to high-risk hedge funds](https://www.financedigest.com/intercos-fund-shareholders-l-catterton-otpp-sell-6-stake-at-7-discount.html "Intercos fund shareholders L Catterton, OTPP sell 6% stake at 7% discount") and inflicted significant losses on those investors. This grass roots attempt to bring a kind of equilibrium to the opportunity of the market – at best, to point out the advantages behemoth Wall Street firms have in our market – isn’t the only attention amateur investors are bringing to our system of [wealth acquisition and management](https://www.financedigest.com/wealth-management-consultant.html "Wealth management consultant"). Cryptocurrency and Bitcoin [trends also point to alternative investment](https://www.financedigest.com/top-5-investment-trends-to-watch-this-summer.html "Top 5 Investment Trends to Watch this Summer") approaches that appeal more to the millennial and Gen Z crowd, many of whom are unable to enter the market at high price points. Robinhood, the first-ever free investing app with the tagline “investing for everyone” was introduced in 2013 as we [watched Belfort’s fraud](https://www.financedigest.com/three-online-fraud-trends-beauty-and-cosmetics-merchants-should-watch-out-for.html "Three Online Fraud Trends Beauty and Cosmetics Merchants Should Watch Out For") on the big screen. Since then, the app has proliferated, making every “easy investment apps” or “trading apps for beginners” list out there. Paired with sleek, easy-to-use interfaces like Venmo, a new category of “wealth tech” is born of [technology’s](https://www.financedigest.com/verasity-joins-the-brightcove-marketplace-to-provide-customers-with-proprietary-ad-tech-technology.html "Verasity Joins the Brightcove Marketplace to Provide Customers With Proprietary Ad-Tech Technology") ever-advancing abilities. Real-time transactions, colorful receipts, gamification and the ability to watch the market from your smartphone, or even better, smartwatch, sparks [interest from investors who were otherwise excluded from the market because of access](https://www.financedigest.com/rci-bank-increases-easy-access-interest-rate-to-1-02.html "Rci Bank Increases Easy Access Interest Rate To 1.02%") to brokers, complicated funds or even prohibitive cost of entry. Now, after a thirty-second download, investing [platforms can be at our fingertips along with coaching and chat streams in community-driven social](https://www.financedigest.com/twitter-social-platforms-could-see-spike-in-election-misinformation.html "Twitter, social platforms could see spike in election misinformation") spaces like Reddit. According to Accenture’s Millennials and Money survey, millennials are, by far, the most digitally savvy investor group overall, and they’re projected to overtake baby boomers in wealth by 2030. Both of these generations are now [bringing their economic power](https://www.financedigest.com/edpr-brings-iberias-first-wind-solar-power-plant-on-stream.html "EDPR brings Iberia’s first wind-solar power plant on-stream") to bear in that same space as the ultra-wealthy. For generations the wealthy have allocated a reasonable portion of their wealth to income producing real estate to reduce their exposure to the swings of the [stock market](https://www.financedigest.com/compelling-tips-to-make-profitable-investments-in-the-stock-market.html "Compelling Tips to Make Profitable Investments in the Stock Market"), while utilizing the power of compounding to significantly increase their wealth over longer horizons. Even though [wealth tech is empowering the average investor](https://www.financedigest.com/brexit-why-investors-must-now-think-global-to-maximise-and-protect-wealth.html "BREXIT: WHY INVESTORS MUST NOW ‘THINK GLOBAL’ TO MAXIMISE AND PROTECT WEALTH") to do the same, it is important to consider the nuances when choosing which platform to work with. Some platforms allow investors to choose a specific [property to invest](https://www.financedigest.com/battling-uncertainty-is-the-key-to-property-investment-success.html "Battling uncertainty is the key to property investment success") in. This can be challenging as as an individual [investor may not have resources or know-how to do research necessary to make a confident investment](https://www.financedigest.com/investment-inspection-trips-bring-liverpool-to-life-for-asian-property-investors.html "Investment Inspection Trips bring Liverpool to life for Asian property investors") decision. It’s also imperative to understand if the platform is the manager of the [assets](https://www.financedigest.com/french-watchdog-fines-h2o-asset-management-executives-over-tennor-investments.html "French watchdog fines H2O Asset Management, executives over Tennor investments") or if they are a marketplace connecting investors to third-party real estate managers and developers. The latter adds another layer of counterparty risk that should be a consideration. Other offerings may be investing in commercial development which doesn’t always ensure the [investment](https://www.financedigest.com/international-investment-soars-as-albania-steps-into-global-spotlight.html "INTERNATIONAL INVESTMENT SOARS AS ALBANIA STEPS INTO GLOBAL SPOTLIGHT") will pay off because of the number of steps between the investment and the finished property. Unforeseen delays in everything from construction to zoning could result in many [years between the time you invest](https://www.financedigest.com/cepsa-to-nearly-double-investments-over-next-3-years-as-profit-soars.html "Cepsa to nearly double investments over next 3 years as profit soars") and start earning dividends. One thing the barrage of investment apps doesn’t fully treat is education on [long-term](https://www.financedigest.com/what-makes-a-good-long-term-investment-strategy.html "What makes a good long-term investment strategy?") investing or access to long-term choices. The appeal of quick trades, daily [investments](https://www.financedigest.com/norway-wealth-fund-to-consider-investing-in-unlisted-equities.html "Norway wealth fund to consider investing in unlisted equities") or even the challenge of a crypto cash out are part of the current appeal of “wealth tech.” Answers to the volatility of the stock market and inflation are largely missing from the conversation. Some platforms, however, are conquering this challenge with an entry investment of only $100 and offering access to through Real Estate Investment Trusts, or REITS, which allow investors to pool their [money for purchase of real estate properties](https://www.financedigest.com/ethical-property-investment-can-your-money-do-more.html "Ethical property investment: Can your money do more? "). In this case an investor doesn’t have to determine which [property they want to invest](https://www.financedigest.com/brexit-no-obstacle-as-chinese-overseas-property-investment-doubles.html "Brexit no obstacle as Chinese overseas property investment doubles") in, they get to own a fractional share of all the properties in the entire portfolio which are generally managed by one real estate fund manager. The important element of wealth [tech we shouldn’t forget in this market](https://www.financedigest.com/tech-earnings-hit-pause-button-on-market-rally.html "Tech earnings hit pause button on market rally") is the wealth. While new apps and platforms emerge to incentivize stock trades and quick-turn investments, millennials and Gen Z still need increased access to acquiring wealth, and that happens with a balanced [portfolio of long-term investment](https://www.financedigest.com/three-fundamental-tips-to-enhance-your-investment-portfolio-performance.html "Three fundamental tips to enhance your investment portfolio performance") returns like real estate. Redditors may be able to use Robinhood to make a statement about their desire to enter the market, but as with any generation, establishing and building [wealth is a long-term endeavor and an important goal](https://www.financedigest.com/norways-wealth-fund-tells-firms-to-set-net-zero-emission-goals.html "Norway’s wealth fund tells firms to set net zero emission goals"). **_Author Bio:_** _With more than two decades of finance experience on Wall Street at institutions such as Credit Suisse and Bank of America, Sachin Jhangiani co-founded [Elevate.Money](https://www.elevate.money/), a private real estate investment trust. With investment buy in as low as $100, the [platform is working](https://www.financedigest.com/brics-aerial-work-platforms-market-competitive-growth-strategies-based-on-type-applications-end-user-and-region.html "BRICS Aerial Work Platforms Market Competitive Growth Strategies Based on Type, Applications, End User and Region") to become the Blackstone for millennials. As CMO, he is focused on removing barriers so real estate [investing is more accessible and educating on why investing in stable sectors](https://www.financedigest.com/invest-in-infrastructure-to-escape-the-starvation-cycle-warns-leading-nonprofit-sector-strategist.html "Invest In Infrastructure To Escape The ‘Starvation Cycle’, Warns Leading Nonprofit Sector Strategist") such as real estate is the long game._ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---