Setting Realistic Expectations for the Great Wealth Transfer with Julian Movsesian

The promise of a colossal wealth transfer from Baby Boomers to younger generations, dubbed the “Great Wealth Transfer,” has generated significant conversation. While the anticipated numbers are massive, often cited at $124 trillion by 2048, this headline figure on its own can create a misleading impression for many families.

Great Wealth Transfer FAQ

 

Q: What is the Great Wealth Transfer?
A: It refers to the projected $124 trillion shift in assets from Baby Boomers to younger generations by 2048.

 

Q: Why might the Great Wealth Transfer not benefit most Americans?
A: Much of the wealth is concentrated among high-net-worth households, and rising healthcare costs may deplete assets before transfer.

 

Q: What does Julian Movsesian say about setting realistic expectations?
A: Julian emphasizes proactive planning and viewing any wealth transfer as a bonus, not a primary financial strategy.

 

Q: How can financial professionals help clients prepare?
A: By encouraging open family discussions, focusing on savings, and creating strategies that don’t rely on uncertain inheritance.

 

Q: What factors reduce the amount of wealth transferred?
A: Longevity costs, changing family dynamics, and the concentration of wealth among a small percentage of households.

Key takeaways

1. 1. Despite historic expectations for the Great Wealth Transfer, the reality for most average Americans may not match up with the optimistic impression.
   2. Much of the transferred wealth will go to a small fraction of the population, not the average American family. Rising healthcare and long-term care costs may also deplete the older generation’s savings before they can be transferred.
   3. Agents should help clients focus on their own savings and debt reduction, viewing any transfer of wealth as a bonus. Facilitate discussions between clients and their parents or children about estate planning and realistic expectations.