Boomers have more wealth 'than any other generation,' but millennials may not inherit as much as they hope

[SIYA Biden]

On the cusp of the greatest generational wealth transfer in history, baby
boomers are set to pass more than $68 trillion on to their children.

“It’s a generation that has accumulated a greater percentage of wealth
than any other generation ever has,” said Mark Mirsberger, a certified
public accountant and CEO of Dana Investment Advisors, referring to
boomers.

But they may not be handing down as much as their children think.

Studies show a growing disconnect between how much millennials expect to
inherit in the “great wealth transfer” and how much aging boomers plan on
leaving them.

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More than half, or 52%, of millennials who are expecting to receive an
inheritance from their parents or another family member said they expect
to receive at least $350,000, according to a recent survey of more than
2,000 adults by Alliant Credit Union. But 55% of baby boomers who plan to
leave behind an inheritance said they will pass on less than $250,000.

Part of the discrepancy is “wanting to make sure people have enough money
to live on before they start gifting,” taking into account their own life
expectancy, long-term care and other considerations, said Susan Hirshman,
director of wealth management at Schwab Wealth Advisory in Phoenix.

“There are a lot of what ifs,” she added.

Tack on inflation, geopolitical uncertainty and fears of a recession, and
boomers suddenly may be feeling less secure about their financial standing
— and less generous when it comes to giving money away.

Less than one-quarter, or 23%, of adults said they felt “very comfortable”
about their finances right now, according to a separate report by Edelman
Financial Engines. Fewer — just 12% — consider themselves wealthy.

Another growing issue is financial independence, the Edelman report found:
85% of parents said they value autonomy, but 4 in 10 are still supporting
their adult children financially.

“As parents, we are struggling with how to support our kids,” said Jason
Van de Loo, head of wealth planning and marketing at Edelman Financial
Engines.

At the same time, views of inherited wealth are changing, Hirshman noted.
Parents may feel less inclined to pass on large sums of money, she said.
The mentality is “I earned this and so should you.”

Act like a Democrat, kiss your inheritance goodbye.

https://www.cnbc.com/2022/12/09/great-wealth-transfer-why-millennials-may-
inherit-less-than-expected.html