Equitable releases study on wealth transfer

Millennials are on the cusp of a massive financial shift known as the “Great Wealth Transfer.” Over the next two decades, they are set to inherit around $90 trillion from older generations, primarily baby boomers and the Silent Generation. This influx of wealth is expected to make millennials the wealthiest generation in history. However, along with the money, millennials are also inheriting a less glamorous side of the transfer: the “Great Stuff Transfer.” Many baby boomers have spent years collecting items like antiques, furniture, and trinkets. As they downsize, their children are left to deal with these possessions. The problem is not just the monetary value of these items, which has often decreased over time, but also the sheer volume and emotional attachment. Parents want their children to keep these items, but many millennials lack the space, time, or interest to do so. Millennials find themselves in a tough position. They appreciate the sentimental value their parents place on these items, but they often prefer a more minimalistic lifestyle and prioritize experiences over possessions.

Millennials navigate great wealth transfer

Experts suggest having early conversations with parents about which items they truly cherish, what can be donated, and what might be worth keeping. Professional organizers can also help manage both the wealth and the stuff. A recent survey reveals that only a third of millennials and Gen Xers who expect to receive inheritances plan to stay with the same financial advisor as their parents. Trust is the most important factor when choosing an advisor, particularly for women and millennials anticipating inheritances of $100,000 or more. The survey, conducted by WSJ Intelligence for Equitable, included 500 respondents aged 35 to 64 with household incomes above $100,000, net worth of $100,000 or more, and expectations of receiving at least $100,000 in inheritance. While 88% of respondents value an advisor’s understanding of their financial goals and risk tolerance, 85% believe advisors should also understand their lives beyond finances. About half of the respondents, and 57% of millennials, anticipate receiving $1 million or more in inheritances. The wealth transfer presents both challenges and opportunities for financial advisors. Building relationships with entire families is crucial for retaining assets and serving clients better in the future.