Young Australians don’t have an investing problem – it’s listening to the noise that says it’s too late or too hard to even start
Darren Connolly
The belief that younger Australians have already missed their chance to build wealth is becoming one of the country’s most damaging financial myths, according to InvestmentMarkets CEO Darren Connolly.
The narrative that property prices, cost of living pressures and the more recent CGT tax changes mean younger Australians are permanently locked out of wealth creation, is a dangerous one Connolly says.
“The biggest mistake young Australians can make is believing it’s too late or too hard to start building wealth,” Connolly said.
“They have been told that unless they own multiple investment properties, they’re already behind.”
“And that with the recent changes to CGT, they will now never get ahead, both things are not true.”
His comments come as younger Australians show increased interest in investing despite economic pressures. Research from Vanguard Australia[1] released this year found almost half of Gen Z and Millennial Australians want to begin investing, and InvestmentMarkets has also seen huge growth in younger investors researching their options across more than 200 providers and 20 different asset classes on its marketplace platform, with ETFs being of particular interest for this cohort.
“For years we’ve celebrated the property millionaire who has an investment portfolio of twenty houses. That’s an extraordinary story, but with the average Australian home now worth more than 1.1 million dollars expecting young people to replicate these types of strategies ignores reality.”
According to Connolly, these outliers and the obsession with trying to catch up quickly often leads inexperienced investors into the biggest traps.
“Social media is a go-to for many younger investors, and while it can provide foundational information, it has also created a generation that feels like everyone else is getting rich overnight.”
“The FOMO mindset can push people towards speculative investments, concentrated bets and chasing trends. Investing should never feel like you’re buying a lottery ticket.”
Rather than trying to find the next investment sensation, Connolly argues most young investors would achieve stronger long-term outcomes by focusing on the basics.
“Start small. Save consistently. Invest regularly. Diversify properly. Keep your costs low. Then give your portfolio time to do what markets have historically done over long periods. It sounds boring, but boring is often incredibly successful.”
The greatest financial advantage younger Australians possess is something money cannot buy.
“Younger Australians have the benefit of time. Compounding is still the closest thing investing has to magic. The earlier you begin, even with relatively small amounts, the harder your money works over the decades that follow.”
“If you’re in your twenties and thinking about getting started, you haven’t missed the opportunity. In many ways, you’re standing at the best possible starting line.”
———
