The next generations of investors are rethinking: everything from how and when to retire, to how to build the wealth they’ll need to their lives on their terms.
Fueled by longer life spans, market skepticism and a yearning for financial freedom, investors are beginning to look beyond the traditional 60/40 retirement playbook. A growing body of research, including recent data from Alto’s whitepaper,, highlights that alternative investments are fast becoming an essential building block of durable, future-ready portfolios.
Advisors know this shift is happening and are finding new ways to offer more value for their clients planning for retirement. We’ve compiled 6 key ways financial advisors can leverage alternatives to help drive better outcomes for investors:
1. Provide education on investing in alternatives and private markets
Alternative strategies including private market investment opportunities and crypto are growing, with assets under management expected to increase to $60 trillion by 2032. And for good reason. Potential benefits of alternatives include:
- Higher return potential
- Inflation hedging potential
- Low correlation to public markets
- Access to earlier-stage private market growth
Yet, 84% of investors still don’t fully understand how alternatives work, and 47% don’t know where to begin. Advisors who educate clients on alts and offer user-friendly platforms will be best positioned to win trust and assets.
2. Leverage alternatives to build resilience against market volatility
Investor confidence in traditional markets is eroding. In fact,only 12% of investors say they’re “very confident” that the stock market can support their retirement and nearly half expect market declines in the next six months. Younger investors, in particular, have already experienced multiple economic shocks, such as the 2008 market crash, COVID and multiple economic shocks, leaving them to proactively seek out more resilient ways to invest.
Advisors can boost their client’s confidence and the long-term durability of their portfolios by helping them unlock private market access.
3. Meet investors where they are - especially Gen X and Millennials
Given their proximity to retirement, both Gen X and Millennials are significantly behind Baby Boomers in retirement savings. This deficit, combined with rising living costs and limited access to employer-sponsored retirement plans (56 million Americans lack access), underscores the need for strategic planning and advice.
Yet engagement with professional advisors varies sharply by generation. Only 31% of Gen X and 26% of Millennials report working with a financial advisor, compared to 43% of Boomers. Unlike Millennials and Gen Z, however, Gen X is also less likely to turn to digital platforms or social media for guidance. Instead, they often navigate retirement decisions independently without consistent professional or digital support, which leaves them under-advised at a critical life stage.
Younger investors, on the other hand, often turn to online platforms for guidance. For example, 67% of Gen Z and 35% of Millennials report using sources like YouTube for financial advice. Yet nearly all (97%) of financial advisors say they do not use these channels to reach clients. This gap highlights an opportunity for advisors to adapt by leveraging digital platforms to share educational content, building trust with Gen X through accessible and personalized planning resources, and engaging Millennials and Gen Z with value-aligned conversations that highlight how advisors can help them access alternative investments and prepare for long-term security.
4. Make guidance on alternative investments a key value component
According to BlackRock, the new diversification model includes 20% alternatives alongside 50% stocks and 30% bonds. Investors using Alto’s SDIRA platform are more likely to have significant allocations to alternatives as well as having higher retirement balances.
- 80% of Alto users have $200K+ in retirement savings
- 74% of those who started saving in their 20s now have over $500K
Offering guidance on alternatives is no longer a way to differentiate services, but a key value driver that can lead to stronger client retention outcomes.
5. Maximize the benefits of tax-advantaged accounts
Too often, investors overlook the powerful role tax-advantaged accounts can play in building long-term wealth. While many contribute to employer-sponsored plans like 401(k)s, a large portion still relies heavily on after-tax investing, which can limit compounding and diminish overall returns.
For advisors, this represents an opportunity to highlight underutilized savings vehicles that allow clients to keep more of what they earn. Self-directed IRAs (SDIRAs), for example, not only preserve the tax benefits of a traditional or Roth IRA but also expand access to a much wider range of investments—including alternatives. This means investors can diversify beyond public equities and bonds while still enjoying the advantages of tax-deferred or tax-free growth.
Advisors who proactively educate clients on the tax-smart use of alternatives can differentiate themselves as forward-thinking partners in retirement planning.
6. Partner with a trusted investment platform
Fintech platforms like Alto are making it easier than ever for investors to access alternatives through intuitive digital experiences with lower investment minimums and fees. Advisors can partner with these platforms to help clients navigate choices while staying in control of the broader strategy.
For financial advisors, embracing alternatives is about more than just staying relevant; it’s about leading investors toward more resilient, personalized retirement outcomes. With the right education, tools and strategy, advisors can help clients unlock the potential of alternatives in portfolios that are built to last.
Read the full white paper here. For more information about how Alto can help your clients diversify their portfolio, visit altoira.com.
