The Greatest Wealth Transfer IN HISTORY Has Begun.
Baby Boomers aged 54-75 hold an estimated $71 TRILLION in wealth.
75 million baby boomers are nearing retirement and 10,000 each day are reaching retirement age.
The average inheritance in 2019 was $212,854 – and it’s slated to grow by up to 10% in the next decade.
Roughly $90 TRILLION (Boomers + Silent Generation) of soon-to-be distributed wealth will be coming into the hands of millennials and other generations.
Millennials are currently the poorest generation on record but this huge wealth disparity will result in a colossal wealth transfer.
Watch this video on how to prepare and benefit from the greatest wealth transfer in history.
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⏰ Timestamps ⏰:
0:00 – Intro
0:32 – US Age & Gender Cohorts
1:42 – Gradual Then Sudden Wealth Transfer
3:08 – Average Inheritance $212,854
3:51 – Wealth By Generation
5:14 – Inherited Asset Allocation
6:51 – Benefit From The Great Wealth Transfer
9:30 – Inheritance Factors To Consider
9:59 – My Thoughts
12:47 – LOL
Instrumental Produced By ”iAmHaywood” on IG
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My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.
This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort in every video that I make. I also believe in complete transparency and open communication with my audience.
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Hey everybody welcome back to whiteboard Finance my name is marco and i’m here to Help you master your money and build Your wealth in today’s video we’re going To be talking about the largest wealth Transfer in human history and how it is Just beginning we are in the early Stages of a 71 trillion yes trillion With a t 71 trillion dollar wealth transfer from The baby boomers into the younger Generations uh we’ll get right into it With this presentation that me and my Research analyst joe consorti put Together if you want to follow joe on Twitter it’s at joe consorti So we’re talking about united states Cohorts by age and gender in this slide Basically on the left side we have the Females on the right side we have the Males and you can see people born in 1920 all the way down to 2020 okay and Then uh basically these are grouped in Age of five-year cohorts and boomers Aged 54-75 hold an estimated 71 trillion Dollars of wealth there are 75 boomers Nearing retirement and 10 000 each day Are hitting retirement age so when i Worked in commercial real estate we Owned about 750 000 square feet of Office space which i leased out to Businesses in the area Throughout multiple buildings
We actually started diversifying or Divesting from that office-based Portfolio and getting into senior living Because of this statistic 10 000 each Day are hitting retirement age and also Hitting 60 and older so you can see here That boomers They make up a significant portion of This chart uh and then the biggest is Millennials you can see here the actual Biggest uh stripe here is the 25 to 29 Year olds And same thing with the males as well as The females okay So as we get into this we’re talking About a gradual then sudden wealth Transfer So Anybody over the age of 40 their net Worth has never been higher so if you Look at this chart right here this is Talking about the net worth of people 70 And older as a share of u.s gdp so you Can see all these 70 year olds from Basically 1990 all the way to let’s say Uh 2019 or so then we have a huge spike Up here where the 70 year olds and Olders are making up a huge part of the Us gdp okay So you can see here um this is the Dollars right here at the wealth Transfer that we’re talking about so we Have 0 10 20 30 40 trillion and you can See from 2018 to 22 how small this
Number is made up of um heirs charity Donations to charity and gifts and as You can see as every four year cohort Moves along you can see how much bigger And bigger this wealth transfer will Actually be With the biggest happening in 2038 to 2042 so we’re just now in the beginning Stages of where this starts to get much Bigger uh from 2023 to 2027 and uh you Can see here that it gets exponentially Bigger at about um 16 years from now Okay So in 2030 all boomers will have hit the Retirement age of 65 and there’s going To be a huge wealth transfer that Accelerates after 2030 as we just saw Right here So as we move along uh there’s going to Be great news if you’re younger the Average inheritance in 2019 was 212 854 dollars and it’s slated to grow up To 10 In the next decade however um there is Going to be a delay of this transfer Because 2 out of 10 baby boomers Actually delayed retirement uh due to Cerveza sickness and 79 percent of Workers age 57 to 75 said they would Rather be semi-retired than leave the Workforce entirely So now that we’ve established this Tremendous amount of wealth being Transferred into the next decade
Let’s explore where this money is and How you can potentially position Yourself to actually take advantage of This wealth transfer So this next Wealth generation by breakdown slide This will actually show you how much Money is going into the system so Roughly 90 trillion dollars of Soon-to-be distributed wealth is coming On onto the market or into the hands of The next generations i should say so Millennials are the poorest generation On record as of the time as the time of This recording and there’s going to be a Huge colossal transfer because there is A huge disparity so if you look at um This chart is showing q2 2005 all the Way to q1 2022 so you can see here from O5 in the dark green we have the silent And earlier generation the light green Is the baby boomer generation Yellow or light yellow if you will is Gen x and then red is millennial you can See millennials are down here in 2022 It’s just 9.4 trillion dollars of wealth Here’s the 71 trillion dollars of wealth We talked about with baby boomers and Then you can see the silent and earlier Generations only have about 18.5 Trillion because obviously they’re older Some have passed away some haven’t Worked in years or decades So the highest earners are in this
Cohort right here you typically earn Your the most amount of money in your 40s and 50s and then you know once you Get into retirement in your 60s that Starts to wane off a little bit So do not get left behind after this Huge wealth transfer is occurring Boomers typically own a larger portion Of equities and consumer durables than Millennials so this simply just means That boomers own a larger portion of Stocks and things like automobiles You know houses appliances things like That that’s what constitutes consumer Durables Furniture mobile homes things like that So millennials are poised to own more Than 50 percent of all real estate after This wealth transfer is going to happen And we’re going from the poorest Generation to the wealthiest so if you Can see here i know the font is a little Bit small But basically you have the silent and Earlier generation making up roughly That 18 point whatever trillion dollars Right here just under 20 trillion Look at the baby boomers they are at 71 Trillion right here and you can see most That is made up of real estate equities And mutual funds and then other assets Gen x is a little bit smaller and then Millennials are over here being the Poorest as we mentioned
And then you can see the percent of Percentage of total um what it’s made up Of uh you can see again uh silent Generation uh equities and mutual funds Same thing with boomers look at Millennials Only a small percentage of their net Worth is made up of equities and mutual Funds which is kind of crazy to me i Would have thought it would be a lot More Stocks and then real estate seems to be The biggest um You can see millennials own about 35.6 Of real estate which i think is pretty Interesting i thought it would be the Actual opposite um and sorry real quick Just to back up the source for this is Actually coming from federalreserve.gov So this isn’t just some you know random Website So how are we going to position Ourselves to benefit so we i talk about This a lot on my channel we need to be Financially savvy so once this wealth Transfer starts to happen typically in The form of you know baby boomers Passing away passing it down to their Heirs we’re going to see a sudden influx Of wealth Going on to the next generation so you Don’t want to go out and buy a new car a Boat or a new house you know things that I talk about on this channel you got to
Look for big wins guys okay when the Form of big wins typically comes in Lifestyle reduction uh not from a Quality of life but you don’t need you Know the ferrari for example you know The the toyota is just fine so for Example what i’m trying to say is you Don’t need to buy you know a ridiculous Car a ridiculous boat you know a new House things like that you need to spend Time allocating into assets with free Cash flows to retain and more Importantly grow your wealth so i always Talk about Financial independence on this channel Once your cash flows can meet or exceed Your monthly obligations in terms of Expenses you are then technically by Definition financially free so think About assets it’s kind of like the rich Dad poor dead mentality think about Assets instead of liabilities Number two is discuss a living will okay And also a deed with your loved ones i Know this is kind of taboo in a lot of Cultures a lot of people don’t want to Talk about this because you know the Second you make the will you know you’re Going to pass away right so a lot of People are very touchy about this but This is the proper way to go about doing Things Number three obviously having a plan uh Don’t fly blind with brand new cash
This is kind of the analogy of you know Lottery winners if you will They start having family members come Out of the woodwork asking them to help Them out and this and that you know you Don’t want to be you know the lottery Winner that that squanders all this Wealth within a couple years or within a Generation if you will So um don’t make poor decisions and then Also i always talk about this on the Channel you need to allocate properly Think of your net worth as a pie okay so Say for example your your net worth is Let’s just say for easy numbers hundred Thousand dollars will have a certain Percentage in each slice of the pie say You want 25 in real estate that’s 25 Grand say you want 25 in cryptocurrency That’s 25 grand that’s just an example For this conversation say you want 33 Percent in stocks that’s 33 grand right Always think of your net worth as a pie And allocate to where if any of those Slices went to zero you can still sleep Well at night and then finally build a Tax strategy so capital gains doesn’t Vaporize your inheritance A couple key factors to talk about Before we end the presentation biden has A proposal to tax unrealized capital Gains upon death which is insane in my Opinion uh this is going to be anywhere From 23.8
To 43.4 percent if the inheritance is Sold and then finally 70 percent of Families who inherit wealth lose it by The next generation let me repeat that Seventy percent of families who inherit Wealth lose it by the next generation so Let’s get into my thoughts here uh Thanks again joe for putting that Together So we saw how this wealth transfer is Going to be happening uh within the next 16 years so by 2038 that’s when we’re Seeing that biggest chunk of wealth Being transferred to the next generation And obviously it’s going to happen Within those 16 years as well so um The biggest takeaway from this is There’s a lot of wealth that you know Our parents or grandparents or depending On how old you are watching this video You know they’ve worked their entire Lives to build up you know hopefully This positive net worth hopefully these Assets that they’re going to have with Equities Mutual funds consumer durables which we Saw in the presentation those things are Either going to get sold for money for You know dollars or some equivalent of Value And they’re going to be passed on to us You know if it isn’t squandered or if They don’t have a bunch of debt right so I think the biggest takeaway from this
Video is that you need to plan Accordingly uh you don’t want to be one Of these lottery winners that inherits Or not inherits wins you know millions Of dollars and next thing you know you Know 5-10 years later you know you have Nothing to show for it you have a cool House a cool car you know you built a Pool in your backyard and where’d the Rest of the money go right so i think That you have to treat this almost as Like a signing bonus like say if you’re A professional athlete and you get all This money at once or if you’re you know Signing on to a new c-level position at Work and you get a huge signing bonus You need to treat this accordingly so it Goes back to my fundamentals of treating It like a pie You need to know what you’re investing In and why you’re investing in it in the First place and you always need to keep Those slices of your pie in check again Going back to the analogy of 25 in real Estate 33 stocks whatever those are just Made up numbers for the sake of this Video But once you figure out where you can Sleep well at night if any of those Slices were to go to zero Then you have a portfolio that you can Invest in for the long term so this Wealth transfer is going to be pretty Exciting um you know i don’t wish
Death or anything upon anyone obviously Um obviously family friends and health Are the most important things and time But it’s inevitable people pass away Money gets transferred down So talk to a Cpa or tax professional Talk to a real estate estate planner You know get the living will do all the Things we talked about in this video and Set yourself up for success not for Failure and think of generations after You don’t don’t just think of yourself So hopefully this was helpful you guys Uh thank you so much for watching please Share the video um my videos don’t get As much traction as they used to Probably because i don’t post Frequently enough but there’s a ton of Value in every video that i put out Again i don’t put out a lot of videos But when i do they’re well thought out And then shout out to joe of the Research assistant for helping putting This presentation together thank you so Much everybody have a prosperous day Oh Oh grandma passed away Ah started to hear that Okay when’s the when’s the funeral Ah Okay All right i’ll be there You
