At Extreme Investor Network, we understand the importance of personal finance and the impact it can have on intergenerational wealth. In a recent study conducted by BlackRock, it was revealed that baby boomers are set to pass on over $68 trillion to their children, marking one of the largest wealth transfers in history. However, there seems to be a growing disconnect between how much the next generation expects to receive and what their parents plan on leaving them.
According to a survey by USA Today Blueprint, 68% of millennials and Gen Zers expect to receive an inheritance of nearly $320,000 on average. On the other hand, 55% of baby boomers who plan to leave an inheritance said they will pass on less than $250,000. This gap in expectations highlights the need for better communication between parents and their adult children regarding financial matters.
Furthermore, a study by the Federal Reserve Bank of Boston revealed that only one-third of white families and about 1 in every 10 Black families receive any inheritance at all. Of those who do, more than half will inherit less than $50,000. This disparity underscores the importance of having open and honest conversations about financial planning within families.
As we navigate through this wealth transfer, it is essential for boomers to map out a plan for passing on their assets. At Extreme Investor Network, we believe that creating a transparent strategy that aligns with family values and expectations is crucial. By discussing these matters as a family and outlining a clear plan for inheritance, we can ensure a smooth transition of wealth between generations.
In the coming years, millennials may become the richest generation in history as they inherit assets from their parents. However, with the current financial challenges faced by young adults, such as high housing costs and student loan debt, it is important to have a solid financial plan in place. Extreme Investor Network is here to provide guidance and support as we navigate through this unprecedented wealth transfer and ensure a stable financial future for generations to come.
