A New Generation of Investors with Matt Bell

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 InvestorsSince 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 lockdownsStimulus payments and increased savingsCommission-free trading platformsSocial media influencers showcasing day tradingApps that made investing feel simple—even entertainingInstead of retreating when markets dropped, many younger investors leaned in.How Younger Investors Are Engaging the Market DifferentlyCompared to previous generations, younger investors tend to:Use mobile apps as their primary investment toolsExplore emerging sectors like crypto, AI, and fintechGet advice from social media and peers rather than advisorsTrade more frequentlyFavor ETFs over traditional mutual fundsETFs, 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 InvestingInterest 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 EffectOne 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 credentialsEvaluate track recordsSeek multiple perspectivesCompare guidance against long-term principlesWise investing has always required counsel, patience, and humility—traits that don’t trend easily online.The Opportunity of Starting YoungDespite 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 GenerationFor 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:DiversificationLong-term thinkingWise counselProcess-driven investingOngoing learningThese conversations can help shift the focus from chasing trends to building a thoughtful strategy.Why Process Matters More Than TrendsIn 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 OwnOne 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 GamblingModern 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 ChangesEvery 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 hypePatience over speedProcess over impulseFaithfulness over fear or greedWhen 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:Faithful Steward: FaithFi’s Quarterly Magazine (Become a FaithFi Partner)Sound Mind InvestingNot Your Father’s Portfolio—A Generational Divide in Investment Preferences (Article by Matt Bell at SoundMindInvesting.com)SavingForCollege.comOur Ultimate Treasure: A 21-Day Journey to Faithful StewardshipWisdom Over Wealth: 12 Lessons from Ecclesiastes on MoneyLook At The Sparrows: A 21-Day Devotional on Financial Fear and AnxietyRich Toward God: A Study on the Parable of the Rich FoolFind a Certified Kingdom Advisor (CKA)FaithFi App Remember, you can call in to ask your questions every weekday 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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