There\u2019s a massive\u00a0wealth\u00a0transfer underway.<\/p>\n
\u201cIt has started and it\u2019s only going to accelerate,\u201d said Liz Koehler, head of advisor engagement for BlackRock\u2019s wealth\u00a0advisory\u00a0business.<\/p>\n
Baby boomers are set to pass more than $68 trillion on to their\u00a0children. And yet, some\u00a0millennials\u00a0and\u00a0Generation Z\u00a0may not be inheriting as much as they think.<\/p>\n
Recent reports show a growing disconnect between how much the next generation expects to receive in the \u201cgreat wealth transfer\u201d and how much their aging parents plan on leaving them.<\/p>\n
To that point, 68%, of millennials and Gen Zers have received or expect to receive an inheritance of nearly $320,000, on average,\u00a0USA Today Blueprint\u00a0found. Additionally, 52% of millennials think they\u2019ll get even more \u2014 at least $350,000 \u2014 according to a separate survey by Alliant Credit Union.<\/p>\n
However, 55% of baby boomers who plan to leave behind an inheritance said they will pass on less than $250,000, Alliant found.<\/p>\n
Further, just one-third of white families and about one in every 10 Black families receive any inheritance at all, and more than half of those inheritances will amount to less than $50,000, according to a separate\u00a0<\/strong>study\u00a0by Federal Reserve Bank of Boston.<\/p>\n Part of the discrepancy is because \u201cparents are just not communicating well with their adult children about financial topics,\u201d said Isabel Barrow, director of financial planning at Edelman Financial Engines.<\/p>\n Tack on\u00a0inflation, high healthcare costs and longer life expectancies, and boomers suddenly may be feeling less secure about their\u00a0financial standing\u00a0\u2014 and less generous when it comes to giving money away.<\/p>\n Overall, fewer Americans are feeling financially confident these days, a report by\u00a0Edelman Financial Engines\u00a0found, and just 14% would consider themselves wealthy.<\/p>\n Still, over the next decade this intergenerational transfer could make millennials \u201cthe richest generation in history,\u201d according to the annual\u00a0Wealth Report\u00a0by global real estate consultancy Knight Frank.<\/p>\n These funds come at a time when\u00a0millennials\u00a0and\u00a0Gen Zers are having a harder time\u00a0making\u00a0it on their own.<\/p>\n In addition to soaring food and\u00a0housing costs, today\u2019s young adults\u00a0face other\u00a0financial challenges\u00a0their parents did not at that age. Not only are their\u00a0wages lower\u00a0than their parents\u2019 earnings when they were in their 20s and 30s, after adjusting for inflation, but they are also carrying larger\u00a0student loan balances, recent\u00a0reports show.<\/p>\n With so much at stake, \u201cthere is so much missing that needs to be discussed with our adult children when it comes to what happens with our money,\u201d Barrow said.<\/p>\n At the same time,\u00a0views of inherited wealth are changing, according to BlackRock\u2019s\u00a0Koehler.\u00a0<\/strong>Parents want to feel confident that the next generation is going to have the same value system around building wealth.<\/p>\n \u201cFirms and advisors who are doing this well are finding ways to open up the conversation so it is clear and transparent and setting common family values and expectations around philanthropic endeavors,\u201d she said.<\/p>\n The failure to create such a strategy is a major issue, the Edelman report found: 90% of parents intend to leave an inheritance to their children but 48% do not have a specific plan in place.<\/p>\n That makes it even more important to map out how that money will be handed down as well as exactly how much will change hands, Barrow said, in addition to discussing it as a family.<\/p>\n \u201cIt\u2019s not only what are you getting but how you are getting it \u2014 all of this needs to be part of a big-picture financial plan,\u201d she said.<\/p>\n<\/p>\n There\u2019s a massive\u00a0wealth\u00a0transfer underway. \u201cIt has started and it\u2019s only going to accelerate,\u201d said Liz Koehler, head of advisor engagement for BlackRock\u2019s wealth\u00a0advisory\u00a0business. Baby boomers are set to pass more than $68 trillion on to their\u00a0children. And yet, some\u00a0millennials\u00a0and\u00a0Generation Z\u00a0may not be inheriting as much as they think. Recent reports show a growing disconnect between […]<\/p>\n","protected":false},"author":0,"featured_media":4151,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4150","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/4150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=4150"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/4150\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/4151"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=4150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=4150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=4150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}