The Great Wealth Transfer is Coming: Are You Ready?

We’re on the cusp of the largest generational transfer of wealth in history. Over the next few decades, baby boomers are expected to pass down up to $84 trillion in assets to younger generations. As a millennial, this presents an enormous opportunity to build and grow your personal wealth.

As millennials and Gen Z stand to inherit record-breaking wealth from older generations, our approach to money management needs to break from traditional conventions. The old rules of investing no longer apply. Traditional financial institutions risk losing touch with what matters to their next generation of clients.

Yet much of the existing financial system fails to grasp our hunger for knowledge and customized guidance. Young investors crave financial literacy to make informed decisions and exert control over their financial futures. While some rely on robo-advisors, most want a hybrid mix of digital ease and human wisdom. We need financial mentors, not just managers.

The seismic wealth shift underway presents a chance to fundamentally reshape how financial advice works. Trillions of dollars hang in the balance. As young investors gain economic power, firms that embrace their forward-thinking digital worldview and passion for impact will prosper. Those clinging to the past risk fading into irrelevance. 

As the table below clearly outlines, younger generations have strikingly different views on wealth compared to baby boomers. They are adopting alternative assets like venture capital and crypto far more rapidly. They’re laser-focused on responsible investing strategies that align with their values. And we strongly believe wealth is a means to greater life freedom – not just the end goal of retirement.

Chart comparing wealth views: Millennials and Gen Z prefer venture capital and crypto, emphasize responsible investing, and see wealth as a means to freedom.

In summary:

  • Millennials and Gen Z favor alternative investments at much higher rates than Gen X.
  • Younger generations have higher risk tolerance and longer time horizons.
  • Impact investing and values alignment matter more to millennials and Gen Z.
  • Advice and communications need to shift to digital for younger demographics.
  • Wealth goals revolve more around freedom and flexibility rather than just retirement.
”There’s a decision you make, when things are darkest; it’s a decision to mentally check out or to keep fighting. It’s a decision to tell yourself that you can do this if you keep fighting for it.” - New York Knicks Guard, Iman Quickley on comeback after trailing Miami Heat by 22 points.