Seventy trillion dollars. What is this astronomical amount? No, it’s not what Jeff Bezos is worth, but rather the amount that American baby boomers and older generations will be handing down between the years 2018 and 2042, according to Cerulli Associates, a research and consulting firm.
The Wall Street Journal refers to it as the “biggest wealth transfer in modern history.” After all, these generations have spent years accumulating wealth (in fact, when looking at Americans aged 70-plus, they had a net worth of nearly $35 trillion at the end of 2021’s first quarter, reveals Federal Reserve data). This is a significant increase when looking at it as a percentage of all American wealth (27 percent of all U.S. wealth compared to 20 percent 30 years ago).
What does this mean for the current climate? They’ve started passing it down to their heirs, stirring up activity in the real estate market, new business launches and charitable giving. Look to the Wall Street Journal article for more in depth insights, such as how much the average inheritance has increased and the breakdown in how this money is being doled out.