Have You Heard of The Great Wealth Transfer?

There is an impending shift coming that economists have named The Great Wealth Transfer. While its explanation is a bit grim, its implications are significant and worth considering. When economists talk about a “wealth transfer,” it’s a polite way of referring to one generation passing away and leaving their hard-earned assets (real estate holdings, businesses, traditional investments, or cash) to the next generation.

The baby boomer generation, long considered to be one of the most successful generations in American history, benefited from a thriving post–WWII economy. Born between 1946 and 1964, the generation as a whole is nearing the 80-year mark. While generalities about the deaths of our loved ones may feel calloused, economists tell us that the shift in wealth that will happen across the nation as this time-honored generation leaves their legacies to the Millennial and Gen X generations will have significant repercussions.

Estimates are that around $84 trillion will be passed down by the year 2050. More specifically, it is estimated that $72.6 trillion will be bequeathed to heirs and $11.9 trillion to charities.

Why Does It Matter?

This amount of money may seem too abstract to be practical. But there are specific implications that we think it’s important to consider and prepare for. Did you know that the Baby Boomer generation currently holds over 50% of the nation’s wealth? What happens when that wealth is dispersed will have significant repercussions on the national scale.

More importantly for you, it could have important personal repercussions that you could prepare for. Specifically, the Great Wealth Transfer could empower more women than ever with resources and financial control, and it could allow for more investing opportunities for Millennials and Gen X than they have previously experienced.

How Can You Prepare?

None of us want to think about the passing of our loved ones. But we do want to help equip you for the next stage of life. That’s why LEAGUE is dedicating time to bring you information that we hope will serve you well in the coming years. From investigating the ins and outs of inheritance taxes to demystifying investing, we hope to be a resource to our community as we step into whatever the future may hold.

As your friend, your neighbor, and your trusted real estate ally, we want to be here as a resource for you.

Let’s dive in with a little exploration of inheritance. This is for anyone, not just those facing the difficult process…

Continue Reading:
Leaving a Legacy: When Wealth Changes Hands—What to Know About Inheritance and Estate Taxes