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Coming of Generational Wealth Transfer

Over the next two decades, the baby boomers (1956-1964) generation will pass over their wealth to Gen X (1965-1980) and millennials(1981-1991). This total wealth is estimated to be $50 trillion and the majority of it is in physical assets that can amount to as high as 80% individuals net worth.

This transfer would be gradual but would leave a change in the pattern of managing and spending it. The majority of its income is estimated to be allocated towards current and future healthcare expenses. This is due to the rise in healthcare and related costs being double of general expenses. 

The portion of stock and corporate holding would be interesting to watch as the second and third generations are more open to selling their business fully or partially. It is the reason that despite funding winter for startups there are higher amounts allocated to buying stakes in the established businesses.

Within the category of assets, the uncertainty towards real estate would be the crucial one. The simple reason would be that the younger generation has limited experience in the ownership and management of real estate. Given that the younger generation has one or two apartments in their portfolio, managing full-fledged houses or even commercial spaces is something that might create discomfort. This might result in them selling out these assets to institutions. 

In past this level of major wealth transfer took place during 1930-1950 when world wars and the great depression occurred. In today’s time, geopolitical issues and wars might be at the same level but chaos levels are certainly higher compared to the previous decade.


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