Massive Wealth Transfer Ahead
As the Boomer generation moves towards retirement, the next three decades are going to see a shift in generational wealth the like of which the United States has never seen. In fact, the world has never experienced anything like it. Ever.
Gen X is set to take over as the generation with the greatest wealth on the planet. Research by Cerulli Associates shows that over $68 trillion in assets is set to be handed over in inheritance to heirs and charity in the near future.
Over 45 million households will be transferring their wealth, and America will see a new breed of billionaires. In fact, experts say that this is going to be the largest transfer of wealth in history.
The U.S. will see the greatest amount of wealth transfers compared to other countries with an astounding $6 trillion set to change hands over the next three decades. This is because the United States of America is home to the largest population of billionaires. Even though the U.S. has only a shade over 4 percent of the world’s population, they have a quarter of all the billionaires on the planet.
There are more billionaires in the United States than in China, Germany, and India combined. As many of the older billionaires reach retirement age and older, much of their wealth is set to be handed down to their family or their heirs.
While some may leave large amounts to charity, there will be many new billionaires made in the coming years. They will not be making the money themselves, they will be inheriting it.
Prudent financial decisions will have to be made, and they will surely be put to the test when it comes to their own decisions about money and what to do with it. [3] For many, the inheritance will come with the added burden of an actual company to run, not just a windfall of cash.
The decision to make the company run smoothly and continue for generations may not be to every heir's taste, and this may cause sales of shares and create investment opportunities for people or companies who want to invest in a successful going concern. Hopefully, many good things will come from this transfer of wealth from one generation to the next.
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