Login | January 09, 2026
Under age 35? A special message for you
JULIE JASON
The Discerning Investor
Published: January 8, 2026
When age is factored into studies of investment fraud and risk, seniors are often the focus. No longer. A younger cohort (ages 18 to 34) may actually be more likely to be susceptible to fraud than seniors.
As reported by the FINRA Investor Education Foundation study we discussed last week (tinyurl.com/4afmv6bw), 64% of those surveyed in this age group said they would opt for an investment that promised a guaranteed, risk-free 25% annual return -- a phrase that raises red flags with experts. What about seniors? Would they be attracted to such an investment? "No" or "don't know" for most of the 55 and older cohort, but "yes" for roughly 1 in 3.
What else can we learn about this younger cohort? The FINRA study reported:
-- This age group is much more likely than the other age groups surveyed (35 to 54; 55 and older) to own individual stocks than to own mutual funds (82% to 47%).
-- Only 26% are invested in non-retirement accounts.
-- In the past year, 38% have bought or sold investments in non-retirement accounts at least four times, and 80% use a mobile app for trading.
-- When it comes to options trading, 68% have an account that offers options trading, and 43% have traded options -- both figures much higher than those of the other two age groups.
-- As for cryptocurrency, 54% consider it to be very or extremely risky, but 1 in 2 are currently invested in it.
What about where the younger investor is getting financial investment information? The study reported more reliance on friends, family and colleagues (85%) than financial professionals (67%), and 1 out of 2 (54%) have talked with their parents about investing. When using social media channels for information on investing, YouTube (61%) is the most popular. Reddit (36%) and Instagram (35%) are next. Most (61%) use "finfluencers" (social media personalities) for recommendations when it comes to making investment decisions.
What about the overall investment knowledge of younger investors?
On an 11-question FINRA investment knowledge quiz, their age group answered only 4.3 out of 11 correctly. (Another 4.3 of 11 provided wrong answers, and 2.3 answered "don't know.")
That's not a good sign by any means. Notwithstanding, 1 in 2 (52%) consider themselves highly knowledgeable when it comes to investing.
A majority (62%) said that they need "to take big risks with ... investments in order to reach ... financial goals." A potential disconnect is when it comes to being willing to take "substantial financial risks" -- only 15% said they are actually willing to do so.
Some suggest there may be historical issues that influence younger investors: "Younger investors didn't grow up in the booming 1990s. Instead, their formative years were shaped by the 2008 financial crisis, the burden of student loans, and the turbulence of the pandemic. Trust in Wall Street has taken a hit -- and so has belief in the idea that you can build real wealth by just throwing money into the S&P 500 and waiting," citing the AOL article "Why Millennials and Gen Z Are Skipping Stocks and Investing in Startups" (tinyurl.com/3wy72vej).
Some may believe that "it is no longer possible to achieve above-average investment returns by investing solely in traditional stocks and bonds" -- a statement confirmed by 72% of high-net-worth younger investors (ages 21-43), compared to 28% of investors 44 and older, surveyed in the 2024 Bank of America Private Bank Study of Wealthy Americans (tinyurl.com/4edr6u5n).
How can younger investors best learn to make solid financial decisions for themselves and their future families? This will no doubt sound old-fashioned, but here it is: Stop depending on shortcuts and magical guaranteed investments. Start a step-by-step learning process that you can expect to continue for the rest of your life. Study history, especially bad market periods. Don't make the mistake of overconfidence earned during favorable markets. Don't use leverage (such as margin) without a full understanding of how it can work against you.
Remember that investing is a long game -- something that will need your attention for the rest of your life. It takes commitment, grit and persistence to succeed.
If you are a young investor, let me know what you think at readers@juliejason.com.
Seasoned investment counsel (tinyurl.com/52nus8hz) and award-winning columnist and author, Julie Jason, JD, LLM, promotes financial literacy and investor protection. Read her latest book, "The Discerning Investor: Personal Portfolio Management in Retirement for Lawyers (and Their Clients)" (tinyurl.com/4u7h9pjs), published by the American Bar Association. Write to Julie at readers@juliejason.com. While all questions cannot be answered, each email is read and reviewed and can lead to discussion in a future column.
COPYRIGHT 2025 Julie Jason, DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION, 1130 Walnut St., Kansas City, MO 64106; 816-581-7500.