Bridging Generations: A Balanced Approach to Family Wealth with Traditional and Innovative Investments

• 2 September 2025
• Jill Nes

As trillions of dollars in wealth begin transferring from baby boomers to their children and grandchildren, a widening generational divide in investment preferences risks complicating family legacies. At BMF Wealth, where I’ve guided our Family Office-style approach for 19 years after two decades running a large private family office overseas, we see this divide as an opportunity to create robust, diversified portfolios that honour the values and risk profiles of all generations. By blending traditional assets like gold with innovative investments such as cryptocurrencies and AI and fostering open communication between patriarchs/matriarchs and younger family members, we ensure wealth preservation and growth across multiple jurisdictions and custodians.

The Generational Investment Divide

Recent discussions in the media, highlight the tensions arising from differing investment priorities:

• Older generations often gravitate toward traditional, returns-focused assets like gold, quality debt, and low-leveraged commercial properties, valuing stability and capital preservation.
• Younger generations are increasingly drawn to ethical investments, technology, and digital assets like Bitcoin, prioritizing purpose and growth potential.

At BMF Wealth, we believe that open dialogue, combined with a disciplined investment strategy, can bridge this divide.

Gold: The Bedrock of Stability

Gold remains a cornerstone of our investment philosophy at BMF Wealth:

• Inflation hedge and safe haven: Its role during market volatility makes it indispensable, particularly for senior family members focused on legacy preservation.
• Performance: Portfolios holding gold in AUD gained +15% during the 2020 market downturn while major indices faltered and is up approx. 50% for the past year.

Crypto: Getting Off Zero

Cryptocurrencies, particularly Bitcoin, represent a new frontier that resonates strongly with younger generations:

• Advocacy since 2021: We’ve recommended portfolios to “get off zero” in their crypto allocation, recognizing its potential to complement traditional assets with uncorrelated returns.
• Modest allocations: Typically 1-5%, tailored to the family’s risk tolerance, ensuring the potential upside is captured without undue risk.

AI: Capturing Future Growth

Artificial intelligence is another area where younger generations are pushing for exposure:

• Investments: AI-focused investments such as global listed equities in companies like Nvidia , Alphabet , Tesla or Microsoft or select venture capital funds.
• Appeal: These investments complement the stability of gold and the innovation of crypto, appealing to families with a higher risk appetite.

A Family Office Approach: Balancing Input and Risk

Our Family Office-style model at BMF Wealth emphasizes diversification across asset classes, jurisdictions, and custodians:

• Mitigating risks: This approach mitigates risks from economic volatility and geopolitical uncertainty while aligning with each family’s unique goals.
• Encouraging input: While patriarchs or matriarchs typically lead investment decisions, we encourage input from younger generations to foster engagement and prepare them for future stewardship.

Communication is Key

• Facilitating open discussions: At BMF Wealth, we facilitate open discussions to align family members on their investment goals.
• Integrating traditional and new-age assets: By integrating traditional and new-age assets in proportions that reflect the family’s risk profile, we create portfolios that are both resilient and forward-looking.