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A New Generation of Investors with Matt Bell

February 19

24 mins

Episode Description

Younger investors are reshaping the markets—from crypto and AI to ETFs and gaming. But with so many new platforms, trends, and voices competing for attention, how can believers invest wisely across generations?

Matt Bell, Managing Editor at Sound Mind Investing, has been tracking these shifts closely, and he joins the show today to share his insights and highlight both what’s changing and what remains timeless—especially when biblical wisdom guides our financial decisions.

The Surge of Younger Investors

Since 2020, millions of new investment accounts have been opened—many by Gen Z and millennials. In fact, a significant portion of today’s investors entered the market during the early pandemic years, despite dramatic market volatility.

Why? Several factors converged:

Extra time at home during lockdowns
Stimulus payments and increased savings
Commission-free trading platforms
Social media influencers showcasing day trading
Apps that made investing feel simple—even entertaining

Instead of retreating when markets dropped, many younger investors leaned in.

How Younger Investors Are Engaging the Market Differently

Compared to previous generations, younger investors tend to:

Use mobile apps as their primary investment tools
Explore emerging sectors like crypto, AI, and fintech
Get advice from social media and peers rather than advisors
Trade more frequently
Favor ETFs over traditional mutual funds

ETFs, in particular, appeal to younger investors because they trade like stocks, often have lower costs, and allow for more active participation.

At the same time, themes like cryptocurrency, gaming-related funds, and sports gambling investments show the sharpest generational divide—drawing the most interest from the youngest investors.

A Cultural Shift in Investing

Interest in newer asset classes isn’t limited to younger investors anymore. Crypto, AI, and alternative investments are gaining traction across all age groups.

Major developments—such as the approval of Bitcoin ETFs and growing conversations about private equity in retirement plans—signal that the investing culture is evolving rapidly.

But rapid access can create risk.

Availability and hype can outpace understanding. New investment options often carry complexity, and without careful research, investors may unknowingly take on risks they don’t fully grasp.

The Social Media Effect

One of the most defining features of today’s investing landscape is the role of social media.

Anyone can build a following and offer financial advice—even without credentials. In a crowded digital space, the loudest voices often gain the most attention, not necessarily the wisest ones.

That’s why discernment matters. Before acting on advice:

Check credentials
Evaluate track records
Seek multiple perspectives
Compare guidance against long-term principles

Wise investing has always required counsel, patience, and humility—traits that don’t trend easily online.

The Opportunity of Starting Young

Despite the risks, the growing interest in investing among younger generations is largely positive.

Time is one of the most powerful tools in investing. Starting early allows compounding to work over decades, creating opportunities for steady growth and long-term stability.

Encouraging young investors to begin is wise. Helping them begin wisely is even more important.

How Parents and Mentors Can Guide the Next Generation

For parents, grandparents, and mentors, the goal isn’t to criticize younger investors—it’s to walk alongside them.

Start by affirming their interest. Then introduce principles that shape a healthier approach:

Diversification
Long-term thinking
Wise counsel
Process-driven investing
Ongoing learning

These conversations can help shift the focus from chasing trends to building a thoughtful strategy.

Why Process Matters More Than Trends

In fast-moving markets, a clear investment process becomes essential.

Emotion—fear when markets fall and greed when they rise—is one of the greatest risks investors face. A disciplined strategy helps guard against impulsive decisions.

For believers, process also reflects stewardship. The money we manage ultimately belongs to God, and our responsibility is to steward it wisely and intentionally.

A thoughtful plan helps investors stay grounded when markets—and headlines—shift.

Understanding What You Own

One practical test of wise investing is simple: can you clearly explain what you own and why?

If an investment can’t be explained in plain language, it may not be fully understood. And stewardship requires understanding.

Clarity leads to better decisions. It also protects against blindly following trends or hype.

When Investing Starts to Feel Like Gambling

Modern platforms often blur the line between investing and entertainment. Frequent trading, instant feedback, and gamified interfaces can encourage short-term thinking.

But Scripture points to a different path:

Ecclesiastes 11:2 encourages diversification.
Proverbs 21:5 praises steady, disciplined planning.
1 Timothy 6:10 warns against the love of money and reckless pursuit of wealth.

These principles emphasize patience, wisdom, and restraint—not speculation.

What Never Changes

Every generation invests differently. Technology evolves. Markets shift. New asset classes emerge.

But God’s principles for stewardship remain steady.

Wise investing is not about chasing what’s trending. It’s about:

Purpose over hype
Patience over speed
Process over impulse
Faithfulness over fear or greed

When portfolios are shaped by those values, investing becomes more than a financial activity—it becomes an act of stewardship.

And that’s a strategy that transcends generations.

On Today’s Program, Rob Answers Listener Questions:

My husband is retiring next year and plans to roll his 401(k) into a Roth IRA. I also have a small 401(k). Can we combine our accounts? Also, I’m a retired teacher with a pension and a small 403(b). Would it make sense to withdraw the funds, invest them elsewhere, and give them to my sons?
I’d like to set up a 529 plan for my new great-grandson. How does it work? Can I make his parents the owners or beneficiaries, and can other family members contribute if I make a one-time gift?

Resources Mentioned:

Remember, you can call in to ask your questions every workday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources.

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