For a long time, property has been Australians' go-to way to build wealth.
But with house prices getting further out of reach, more people are turning to the stock market.
And new CommSec data gives us a pretty good idea of how Australians are investing across different generations.
The figures cover more than 2 million customers, and there are some pretty big differences depending on age.
I think they're worth looking at, particularly if you've ever wondered whether your own portfolio is ahead or behind.
So, how do you compare?
Image source: Getty Images
How much does each generation have invested?
According to CommSec, Gen Z investors have an average portfolio of around $20,000.
That might not sound like much, but many of these investors are only just getting started.
Millennials are quite a bit further ahead, with an average portfolio of around $66,000.
Then we get to Gen X.
The average Gen X investor has around $233,000 in the market, while Baby Boomers are sitting on an average portfolio of roughly $541,000.
But I don't think investors should look at those numbers and get worried if they're behind.
Everyone is in a different position.
Some people might have more money tied up in property or superannuation, while others may have only started investing recently.
Still, I think these figures are a pretty good reminder of what can happen when you keep investing for a long time.
Where should you be?
I don't believe there's one magic number to look at here.
If you're in your 20s, I think getting started matters more than worrying about whether you have $10,000 or $30,000 invested.
In your 30s and 40s, regularly adding to your portfolio can really start to make a difference.
And once you reach your 50s and 60s, the amount you have invested can become much bigger after decades of contributions and compounding.
Keep in mind, the average Baby Boomer portfolio of $541,000 wasn't built overnight.
That balance likely took many, many years to reach.
And that's probably the biggest lesson here.
What's the best way to invest?
The share market doesn't need to be as complicated as many investors make it.
You don't need to find the next stock that doubles in six months or try to perfectly time every move in the market.
For most investors, building a diversified mix of quality ASX shares, international shares or low-cost ETF's is a good place to start.
The key is being consistent.
For example, investing $500 each week works out to $26,000 a year.
Do that for 10 years, and you've put $260,000 into the market before even including any investment returns or dividends.
Of course, not everyone can invest $500 a week.
But whatever the amount is, I think the important thing is to keep adding to your portfolio and give your investments time to grow.
