Research shows that millionaire Millennials and Gen Xers are more than twice as likely as Baby Boomers to prioritize sharing their wealth with the next generation. new research From financial services firm Charles Schwab.
Data reveals that baby boomers born between 1946 and 1964 plan to spend most of their wealth rather than save it for future generations.
| all wealthy americans | wealthy millennials | wealthyGeneration X | wealthy boomers | |
| I want to leave my money for the next generation and others even after I die. | 39 percent | 32 percent | 45 percent | 34 percent |
| I want the next generation to enjoy money while I'm still alive. | 36 percent | 53 percent | 44 percent | 21 percent |
| I want to enjoy money for myself while I'm alive. | 25 percent | 15 percent | 11 percent | 45 percent |
| I intend to distribute some of their wealth during my lifetime | 80 percent | 97 percent | 97 percent | 56 percent |
| the portion of wealth you intend to inherit during your lifetime(Average of those planning to inherit assets) | 39 percent | 52 percent | 49 percent | 19 percent |
| I plan to distribute part of my assets after my death. | 87 percent | 97 percent | 98 percent | 73 percent |
| The portion of wealth you plan to inherit after your lifetime(Average of those planning to inherit assets) | 61 percent | 48 percent | 51 percent | 81 percent |
The study analyzed 1,000 high-net-worth Americans with investable assets of $1 million or more. It revealed that young wealthy Americans are planning to break away from tradition and transfer their wealth rather than wait until after death.
The report also found that baby boomers want to hand over about $3.1 million, while the average wealthy person plans to hand over about $4.1 million. Meanwhile, wealthy millennials plan to inherit about $4.7 million in assets.
“It's encouraging to see that the majority of wealthy Americans who plan to transfer their wealth have begun to formalize those plans and documents and communicate with their families.” said. susan hirshmanDirector of Wealth Management at Schwab Wealth Advisory and Schwab Center for Financial Research.
“In addition to these basic steps, we encourage families to discuss and plan based on shared values and wealth transfer goals,” Hirschman added.
She added: “These conversations help heirs see themselves as stewards of the estate, not just beneficiaries, and gain important perspective on the meaning of wealth, inheritance, and the responsibilities that come with it. ” he continued.
