Baby Boomers Are Most Likely To Have These Assets

It is no secret that baby boomers, those born between 1946 and 1964, are the wealthiest of all the generations. Taking advantage of favorable economic factors, such as affordable housing prices and a booming economy, boomers have amassed nearly $85 trillion worth of assets, per Federal Reserve data –- nearly half of the nation's entire wealth. But out of all investment opportunities that make sense for retirees and the older generation, which ones have been a favorite among the boomers? Well, in a stark contrast to some of the other generations, such as Gen Z and the millennials, boomers have put their hard-earned money in traditional assets like real estate, stocks, and mutual funds. In fact, about half of the boomers' enormous wealth is held up in financial assets, while another third of it is locked up in real estate.

The investing choices made by boomers become more understandable when their biggest motivations behind investing is taken into account. Unlike the younger generations, who may invest to experiment, boomers have always been very conscious about investing to have a hefty nest egg for retirement. Although retirement saving is a big factor for all the other generations as well, the fact that boomers are much nearer to retirement has certainly been influencing their decisions. For instance, factors like relocating and staying closer to family have been instrumental in influencing the boomers resurgence in the real estate market, per National Association of Realtors.  

Boomers possess nearly $23 trillion in stocks and mutual funds –- more than the entire wealth of all the millennials. Their stock holdings have certainly benefitted from the decades of bull market, which saw the assets appreciate. In fact, boomers have enjoyed more than 10% annual return on their stock investments. This is also evident from the fact that if you bought a S&P stock at $1000 back in 1975, you would be sitting at $32,000 today (when adjusted for inflation). 

However, some other factors also contributed to the excellent financial position boomers find themselves in. Boomers were the first generation to take advantage of good rates of return from their 401k retirement plans that encouraged them to invest into stocks in a booming market. In comparison, millennials have had to endure the vagaries of student debt, rising costs of living, and stagnating wages, which meant lesser disposable income for investing. Owing to their strong financial position, boomers also have the advantage of buying properties with cash. This includes nearly 50% of all old boomers aged 70 to 78. All-cash purchases helps them surpass the enormous mortgage rates that inflict other generations. 

Real estate and housing is the second-biggest chunk of all the wealth held by the baby boomers generation. What made the boomers build so much equity in homes? It is often perceived that the boomers had it easy with affordable housing markets and a prospering economy at the time of buying. After all, a whopping 45% of the baby boomers bought their homes when they were between 25 to 34 years old, per Berkeley Economic Review –- corresponding to the 70s and the early 80s. These were indeed good times compared to, say, the post-Great Recession era — when the millennials got ready to enter the housing market — in terms of the median home price to income ratio. Having said that, these were also the times with some of the greatest mortgage rates in history. Moreover, post-Great Recession and post-Covid are some other significant periods when a lot of boomers capitalized on the lower interest rates on housing loans and bought or refinanced homes.

The motivations behind having more housing assets seems to be a lot more cultural as well. Having a home for your family in the '70s was the American Dream. In comparison, a huge number of millennials don't even have a family at the same age (25 to 34) to feel the need of a permanent house. Marrying late is one of the primary reasons behind their lack of homes. On top of all this, boomers are in no mood of letting go of these assets any time soon, either. According to a 2025 poll by Clever Real Estate, nearly 61% of the boomers say they will never sell their homes.