The Great Wealth Transfer: Boomers to Millennials and Gen Z

In 2024, we witnessed the beginning of a financial phenomenon informally known as The Great Wealth Transfer. This intergenerational shift of wealth sees the Baby Boomer generation passing down close to $84 trillion to their heirs, primarily Millennials and Gen Z.

This isn't only happening on Wall Street or through complex financial instruments. It's unfolding in family rooms and estate planning meetings across the country.

A Shift in Financial Balance

A recent USA Today survey highlights how Millennials and Gen Z view this upcoming shift. 84% expect to receive an inheritance exceeding $100,000, while 15% anticipating sums over $500,000 and 6% even expecting to inherit more than $1 million. The average expected inheritance sits at a healthy $320,000.

The survey also showcases a potential wealth gap within these younger generations. While a majority expect a significant inheritance, there will be those who receive little or nothing at all.

Not Only Cash

The wealth transfer isn't limited to only cash. 62% of Millennials and Gen Z expecting an inheritance anticipate receiving real estate. This might be a primary residence, a vacation property, or even land.

Other commonly anticipated inheritances include vehicles, investments, and even ownership stakes in businesses. Here's a breakdown of what they expect to receive:

·      Cash: 82%

·      Real estate: 62%

·      Vehicle: 41%

·      Investments and ownership stakes: 32%

·      Other property: 19%

Opportunities and Challenges

This wealth transfer has the potential to reshape American society. For those receiving a sizeable inheritance, it could mean financial security, the ability to pursue entrepreneurial dreams, or even early retirement. For those who don't inherit significant assets, the gap between the haves and have-nots could widen.

The Great Wealth Transfer presents both opportunities and challenges. Financial literacy is key, and young people should educate themselves on managing money, investing wisely, and planning for the future. A great start is to seek out the advice of a financial professional to answer any questions you might have.

True Impact Yet to Be Revealed

The coming decades will reveal the true impact of The Great Wealth Transfer. It has the potential to alleviate financial burdens for many young Americans, but it's also important to address the potential for inequality. By approaching this wealth transfer with awareness and preparation, both individuals and society as a whole can navigate this financial phenomenon and build a more secure