New data reveals that Generation X (born 1965-1980) is increasingly looking past old safe bets to secure their financial futures.
Baby boomers (born 1948-1964) are also shifting toward more aggressive, sophisticated strategies as they approach or navigate retirement.
1. Moving beyond the traditional 60/40 portfolio
The once-sacred 60/40 split between stocks and bonds is losing its luster.
According to the latest Charles Schwab Modern Wealth Survey, 42% of Americans now believe this classic portfolio strategy is outdated. This sentiment is shared by 39% of Gen X investors and 35% of boomers, who feel the model no longer meets current market demands.
For these investors, success today requires looking beyond the standard bond market. The survey found that 69% of both Gen X and boomers believe investing success now requires supplementing traditional holdings with new asset types.
This shift marks a significant departure from the set-it-and-forget-it mentality that dominated the retirement-planning landscape for previous generations.
2. Embracing short-term risk for long-term gains
There is a growing consensus that the safe path may no longer be enough. More than half of Americans (52%) believe that investing today requires taking more short-term risk than in the past. Interestingly, Gen X is leading this charge, with 55% agreeing that higher risk levels are necessary, compared to 47% of boomers.
This willingness to take on more volatility is a calculated response to a changing market. Investors are becoming more comfortable with price swings if it means achieving their primary goals of growing money and saving for retirement.
3. The rise of the active side portfolio
The days of having one single investment account for every goal are fading. Only 39% of investors still maintain a single portfolio for all their financial needs. Instead, 46% have a main investment portfolio supplemented by one or more smaller, separate accounts used to experiment with different strategies or products.
This multi-portfolio approach allows investors to compartmentalize their risk. While the main bucket might hold core stocks and mutual funds, secondary portfolios are often used to try new strategies or trade actively. This structure provides a psychological safety net, letting investors participate in market volatility without risking their entire retirement nest egg.
4. Cryptocurrency moves into the mainstream
Cryptocurrency is no longer just for the tech-savvy youth; it has found a permanent home in the portfolios of more seasoned investors.
Nearly half of American investors have owned or currently own crypto, and it now accounts for roughly 10% of the average investment allocation. This places it ahead of bonds (8%) in terms of average portfolio share.
The motivation behind this shift is primarily growth-oriented. Among those who own digital assets, 53% cite strong long-term growth potential as their reason, while 48% use it as a tool for diversification. Even though 50% of non-crypto investors still view it as high risk, the asset class is now a core component of modern wealth building.
5. Increased trading frequency and confidence
Two in five investors report they are trading more frequently now than when they first started. The drivers behind this are practical: Half say they have better access to trading tools, and The other half are moving more often to take advantage of specific market opportunities.
Increased confidence is also a major factor: 48% of active traders say they trade more because they have more experience and feel more certain in their decision-making.
Despite this increase in activity, the underlying virtue of patience remains; 63% of Americans still acknowledge that investing today requires more long-term patience than ever before.
Actionable steps for the modern investor
The current investment landscape demands more than just a passive interest. The most successful investors will be those who combine the wisdom of experience with a willingness to adapt to new tools and risks.
- Audit your asset mix: Review your current holdings to see if you are over-reliant on the traditional 60/40 split, which 42% of Americans now consider outdated.
- Explore alternative assets: Consider if alternatives or digital assets could provide the diversification 48% of crypto owners seek.
- Segment your goals: Join the 46% of investors using separate accounts for core savings and tactical strategies.
- Leverage new tools: Take advantage of modern trading platforms that 51% of active traders say make market entry easier.
- Re-evaluate risk tolerance: Determine if you agree with the 55% of Gen X who believe more short-term risk is necessary today.
- Seek professional guidance: Acknowledge that modern portfolios are more sophisticated, a view held by 57% of the population. If you have more than $100,000 in savings, SmartAsset offers a free service that matches you to a vetted, fiduciary advisor bound to act in your best interests in under 5 minutes.
By balancing short-term tactical moves with long-term patience, Gen X and boomers are rewriting the rules of what it means to build wealth in a rapidly changing economy.
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