#26 - Will The Great Wealth Transfer Impact You?
Reluctant Executor News
Trillions of dollars is expected to be passed down in the coming years, in what many are calling The Great Wealth Transfer. Wealth accumulated by Baby Boomers that will be inherited by younger generations is estimated to be as high as $84 trillion.
Why is this important? Baby Boomers are the wealthiest generation in history, so the scale of this intergenerational wealth shift has never been seen before. Large scale impacts could include a shift in support for different social or political causes, or changes to labor and financial markets.
But what about the direct impact to you? Could you pay off debt? buy a home? fund your kid's college? While the average Boomer net worth is $1.2 to 1.6 million, half of Boomers are worth less than $325,000.
What's the takeaway? Trillion dollar numbers make headlines, but conversations with your immediate family allow you to set realistic expectations. Below are two posts that hit on expectations around The Great Wealth Transfer.
LinkedIn post from November 30, 2023
A headline popped up this morning: "The Great Wealth Transfer is Here"
The problem?
This article applies to nobody that is reading this post.
The full headline is, "‘The great wealth transfer’ is here: Billionaires set to transfer trillions to their kids"
The article talks about how 1,000 or so billionaires are set to transfer $5.2 trillion to their kids in the near future, and what these new billionaires are expected to do with this money.
These families likely have a strategic plan in place, and the heirs know what to expect when the inheritance comes.
You don't have to be inheriting billions to make sure you have a plan in place.
But you should have a plan in place.
If you expect only a few thousand, it's important to know how to access that money and if you'll owe taxes on it.
If you expect more, you'll probably be dealing with multiple accounts and assets. Do you know where the title to your parents' car is located? Do you know all real estate that they own? Do you know if you're a beneficiary on an account?
If you don't know what to expect... pick up the phone and give your parents a call.
If you don't know where to start, or need help brainstorming, I can help.
Click here to comment or like this post on LinkedIn.
LinkedIn post from May 8, 2024
"Parents are just not communicating well with their adult children about financial topics."
There is a mismatch in expected inheritance vs. the amount parents plan to leave behind.
Over $84 TRILLION is expected to be transferred from Baby Boomers to their children in the coming years.
Younger generations expect to receive $320,000 to $350,000.
But older generations only plan to leave $250,000 or less.
Why does this matter?
Younger generations already spent that money.
Almost half of those expecting an inheritance plan to use the money to pay off debt.
How do your plans change if you don't receive as much as you thought?
What can you do about it today?
Start communicating with your parents about financial topics.
Click here to comment or like this post on LinkedIn.
Coaching Support
Having conversations with family about money and death is difficult. But it is also one of the greatest gifts that parents can give their kids.
If you need help figuring out how to start these talks, contact me at Bill@ReluctantExecutor.com.