At a pivotal juncture in the investment world, the emergence of Real World Assets (RWA) and fractional ownership is redefining investment paradigms. This shift is particularly impactful for Gen Z and new investors, who confront unique economic challenges. Saddled with substantial student loan debt, averaging around $37,000 for the class of 2022, and facing lower initial earning potentials, this demographic finds traditional investment avenues, like real estate and art collection, increasingly out of reach. In a 2022 study by Self Financial, it was found that 5.2% of Gen Z reported having no savings at all, while just under a quarter (24%) had savings between $501-$1,000. The estimated average savings amount for Gen Z was $2,410. These economic barriers, combined with the traditional exclusivity of certain investment methods, have created formidable obstacles for emerging generations.
The Inaccessibility of Traditional Investments
The aspiration to invest in assets like real estate or art, traditionally seen as hallmarks of financial success, is becoming increasingly elusive for younger generations. Highlighting this trend, the U.S. median home price soared to nearly $398,500 in 2022, a record high that has dramatically outpaced average income growth. This disparity is evident when comparing historical data: in the 1960s, the median home price was roughly twice the average yearly income, but by 2022, it had risen to…
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