Millennials Stand to Inherit $24 Trillion, But Exactly When Is Hard to Say

Millennials will inherit more wealth than did Generation X and the Baby Boomers combined. When and what they do with all that investment capital is the big unknown, say global money managers.

It will be “one of the largest intergenerational wealth transfers in history,” according to UBS Wealth Management, which manages $2.8 trillion in assets worldwide.

“Those born between 1982 and 1998 already account for 27% of the global population and hold $17 trillion of the world’s private wealth,” UBS reports.

“And by 2020, that could rise as high as $24 trillion — or roughly 1.5 times the US’s national output in 2015.”

The white paper goes on to make the case that the Millennial generation is different from its predecessors in three key areas.

“First, millennials are digital natives that have grown up in a world of automation and connectivity,” writes Jürg Zeltner, a co-author of the report.

“This high fluency with technology means millennials demand ever more digital services, and accelerating adoption rates imply that new innovations are already spreading quickly across generations.

“Second, millennials call for a wide choice of content, conveniently delivered, that meets their varied affinities and needs. The choice, social connections, and convenience of a platform-company model appeal to millennials today and will spread to other generations as technologies diffuse.

“And finally, millennials seem increasingly aware of global problems and their potential solutions, as technology broadens their circle of social connections.

“A broadly held desire for purpose means they are particularly willing to use their private capital for the public good, and will be ever more able to do so as wealth passes down to them.”

Waiting

The numbers are staggering and some changes have already begun, including the disproportionate distribution of wealth.

A handful of Millennials make billions in start-ups while the vast majority struggle with crushing student loan debt. Four in 10 Millennials live at home with their parents, sometimes even while they try to maintain a luxury lifestyle of eating out, exclusive gym memberships, and foreign travel.

Though $24 trillion is a staggering figure, most Millennials will have to wait for an inheritance — if they receive one at all.

It’s true that inheritances will more than double over the coming two decades as the baby boomer generation ages out, counters another report.

Yet Millenials are likely to be paying off student loans, auto loans, and credit cards. That will delay their ability to take part in the consumer economy as their parents and grandparents did.

Even so, the average age of transfer will be 61, the report contends, and that might be even later as boomer life expectancy stretches out.

5 Best Stocks to Buy If Biden Wins the Election

If Vice President Joe Biden wins the election on November 3, 2020, you might want to consider adding these five equities positions to your portfolio: XLU, TSLA, XLV, MLM, and

TGIF — Ending the Week with a Whimper

Everything is proceeding as I have foreseen. In Monday's "The Week Ahead — 200,000 Deaths Weigh Heavily on the Market," we knew the 200,000th American death would put Covid back

Even If the Overall Market Continues Lower, This Staple Could Maintain Its Upward Trend

Since peaking in early September, the main indices have all three stumbled for the last few weeks with the S&P and Nasdaq falling over 10% from their highs already. Three

tesla stock

TSLA Too Volatile? Two Option Strategies for Tesla Stock

Tesla Inc. (TSLA) is one of the most popular stocks amongst investors. Led by CEO Elon Musk the electric vehicle manufacturer has disrupted the transportation industry, bringing hype to a

pot stock

Pot Stock ‘Blood in the Streets’ Buy Signal Is Here

The cannabis market has been a volatile space in recent years. A wave in legalization, particularly in Canada but also through parts of the United States, led to significant growth

Use Options as Portfolio Insurance in Rocky Times

Since the beginning of September we have seen the main U.S. indices drop. There are a number of possible reasons for the decline, but more importantly I expect the increased

4 Foreign Countries Where You Can Retire On Social Security Alone

Someone once said that retirement is not the end of the road but a highway opening to a new chapter in life. Whoever said that clearly has never experienced a

We’re Beating the Index Off the March Low: Update

The Bulletproof Wealth Report model portfolio is continuing to perform well and is now up 27.4% since the inception of our monthly newsletter on April 13, 2018. Although the value

Terrible Tuesday: Fed’s Powell Says U.S. Faces Slow, Uncertain Recovery

Powell testifies before Congress today. We already know what he's going to say though, as his testimony is pre-released. Not that that will stop the market from acting shocked when

5 Best Online Banks, Highest Savings Rates for Your Buck

Finding an online bank can be difficult. Varying rates, hidden fees and simply having too many choices can cause confusion and make it hard to get started. Set aside some

Hiring a Financial Advisor: What Is a Fiduciary, and Why Should You Care?

“Fiduciary” is a funny word. You may have never heard of it until now, but you may actually have had a fiduciary in your life. More importantly, you may wish

Trading Cryptocurrency Using Limit and Stop Orders

This is the last of a five-part series to help new investors and traders start and grow a cryptocurrency account. In all five articles I’ve been using Bitcoin (BTC) in