Source: Fortune
Summary
Millennials are entering their era of earning, with their net worth quadrupling in just five years, according to a report by Equitable Advisors. The “Peak 35” phenomenon is driven by the Great Wealth Transfer, with 70% of millennials expecting to inherit assets from their baby boomer families. Financial experts say this transfer of assets is unprecedented in its extent and intentionality. The report finds that millennials’ net worth has grown from $3.9 trillion to almost $16 trillion between 2019 and 2024.
Our Reading
The numbers tell one story. Millennials’ wealth is growing, but the transfer of assets is a complex process. Gerald Grant III, a certified financial planner, says the “Peak 35” puts millennials in a unique position, with many expecting to inherit assets from their families. The report finds that 70% of millennials expect to inherit assets, but only 27% feel capable of making smart financial decisions when dealing with complex assets. The transfer of wealth is not just about money, but also about communication between generations.
The strategy enters a familiar phase. Millennials are no longer known as the “financially lost generation” and are quickly overtaking their baby boomer counterparts. However, the level of wealth disparity is also obvious, with the average millennial still having a net worth 30% less than their baby boomer relatives at the same age. The transfer of wealth is a complex process, and experts advise everyone to have open discussions with their parents about inheritance.
One sentence that reframes the situation: The transfer of wealth is not just about money, but also about teaching the next generation how to drive the “shiny red Ferrari” of inherited assets.
Author: Evan Null
