The Biggest Wealth Transfer in History Revealed 🌍
Ernst & Young (EY) discloses a monumental shift of wealth is underway, with trillions of dollars in assets changing hands this year.
Trillions Passed Down to the Next Generation 🔄
- EY predicts baby boomers will transfer up to $3 trillion in assets to their descendants this year.
- The “tidal wave” of wealth transfer is expected to continue until the early 2020s.
- An estimated $2 trillion – $3 trillion will be inherited from affluent donors in 2024, with billions changing hands annually.
The Impact on Female and Next-Generation Recipients 💼
- The inheritance of baby boomers’ wealth is the largest asset transfer in history and will transform female and next-generation inheritors.
- Wealthy donors will pass on a staggering $18 trillion to beneficiaries by 2030.
Differing Estimates on Wealth Transfer 💸
- EY’s $18 trillion transfer is lower than estimates by other firms, with projections ranging from $53 trillion to $90 trillion.
- Global real estate firm Knight Frank believes baby boomers will transfer $90 trillion to millennials in the coming decades.
Challenges Faced by Beneficiaries 🚨
- EY highlights the lack of knowledge, experience, and network among beneficiaries to manage their newfound wealth.
- Inheritors’ needs are diverse and underserved compared to donors, with many being unfamiliar with wealth management.
- Female beneficiaries and younger generations have different goals and requirements, posing unique challenges in wealth management.
Hot Take 🔥
Prepare for the significant wealth transfer about to reshape the financial landscape and impact the next generation of inheritors.
Sources:
– [EY Report](https://www.ey.com/en_us/insights/wealth-asset-management/how-to-navigate-the-us18t-wealth-management-challenge)
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