Are you a millennial feeling the financial pressure of student debt, low-wage jobs, and unaffordable housing? You’re not alone. A recent study shows that the wealth gap between rich millennials and the rest of their age group is the largest of any generation, leading to a new wave of class tension and resentment.
The average millennial has 30% less wealth at the age of 35 than baby boomers did at the same age, but the top 10% of millennials have 20% more wealth than the top baby boomers did at the same age. This disparity is due to various factors, including different levels of education, job opportunities, and family wealth.
However, there may be hope for millennials in the form of inheritances from baby boomers. In what’s known as “the great wealth transfer,” baby boomers are expected to pass down between $70 trillion and $90 trillion in wealth over the next 20 years, with a significant portion going to their millennial children. This influx of wealth could help bridge the wealth gap and provide opportunities for financial growth.
The rise of extreme wealth among millennials is also creating a new market for luxury goods, real estate, and wealth management services. Wealth management firms are seeing an increase in business from moneyed millennials who have inherited wealth and are looking to invest and grow their assets.
One example is Clayton Orrigo, a luxury real estate broker in Manhattan, who has built a thriving business working with young buyers with inherited wealth. He emphasizes the discreet and personalized service he provides to his clients, many of whom come from wealthy families and trusts.
Overall, the financial landscape for millennials is complex and evolving. While challenges like student debt and low-wage jobs persist, opportunities for wealth accumulation through inheritances and investments are also present. By staying informed and proactive in managing their finances, millennials can navigate the wealth gap and build a secure financial future.
