Baby boomers, born between 1946 and 1964, are the wealthiest generation in history, holding substantial assets and wealth. As they age, a significant amount of wealth is expected to pass from baby boomers to their millennial children and grandchildren. Generational wealth is slowly shifting into the hands of the Millennial generation, who have less purchasing power than their Baby Boomer parents.
Millennials and GenZ are poor; these two younger generations are both facing emotional and financial turmoil in their lives. It’s no secret that with the 2008 recession, the global pandemic, and the inflationary cost of everything, it is not secret that Millennials and GenZ have very little in the way of savings. Wealth is (supposedly) being hoarded by the Boomer generation and that money is going to be transferred to the younger generations. Millennials, particularly older Millennials, are running out of time to generate wealth, as many are approaching middle age. They’re no doubt looking forward to a wealth transfer to help them settle in their lives.
Millennials and GenZ are facing an astronomical cost of everything and older Millennials are running out of time to have children (if they are having children). Will the wealth transfer help?
The great wealth transfer of $68 trillion is on the horizon. Boomers (the generation born after World War 2) will pass on $68 trillion to the next generation. But there are new tax laws in place; some adult heirs may be expected to withdraw from their IRA’s within a decade of inheritance in order to pay taxes. What does this mean for your inheritance? What does the $68 trillion wealth transfer mean for you?
Millennials who receive substantial inheritances may experience improved economic prospects, while those who do not may face challenges in building wealth and achieving financial stability.