Why Fractional Ownership is perfect for Millennials?
Updated: May 29, 2021
Do you know about fractional investments? Are you investing at all? If you haven’t already heard, millennials aren’t investing at the rate they probably should. Armed with reasons that range from not having enough money in the bank to a general distrust of the stock market, it was found out that 43% of millennials haven’t invested a dime. This news isn’t good for the other 57% — 54% of them that have invested. Some quick math will tell you that, even with compounded interest, it won’t be anywhere near enough for that ideal retirement.
So why aren’t millennials investing? 45% responded that they don’t have enough money, while 34% can be attributed to a lack of education around investing — either they don’t know how or aren’t aware of the different options available. The other 21% either don’t want to invest or don’t have time.
No matter how you slice it, these results reflect how disillusioned millennials feel towards investing, and financial matters in general. The real estate market is off-limits to most, the impending recession has decreased trust in stocks. Bonds pay peanuts in interest. Savings accounts? Well, what’s the point? There is hope, though!
A combination of technological advancement and innovation has given birth to the idea of fractional asset investing. The idea is simple: instead of buying an entire property, work of art, sports collectible, or share, you buy a portion of it, also known as fractional investing.