Are You Ready for the Great Wealth Transfer?
Do you know about The Great Wealth Transfer?
If not, you will. In fact, it is already under way. The Great Wealth Transfer involves $68 trillion dollars and is the largest, global intergenerational wealth transfer ever.
In this article and accompanying video, we will look at what The Great Wealth Transfer is, who is affected by this and explore specific ways you can prepare yourself for it emotionally and mentally.
This is part nine of our current 10-part series, The Invisible Customer with All the Money®, where we will focus on how women over 60 can begin telling a new and better story about what we can be, do, and experience through self-love.
#1: 7 Steps to Reclaim Your Power from the Media
#2: Aging Stereotypes: Can You Be More Feeble?
#3: 10 Steps to Influence Yourself from Within
#4: What Makes Your World Go Round After 60?
#5: 10 Steps to Unleash Your Inspired Voice After 60
#6: 5 Steps for Taking Back Control of Our Choices from the Media
#7: 10 Steps to Re-Engage with Life After 60
#8: 10 Steps to Bridging the Generational Divide
What Is the Great Wealth Transfer?
Between 2020 and 2061 an estimated $68 trillion will be passed down from two generations to their immediate heirs.
- Baby Boomers will account for $53 trillion.
- Silent Generation (who came before the boomers) will account for $15.8 trillion.
Together, these two generations will bequest over $84 trillion in total assets.
Not surprisingly, the top 1.5% of the world’s high-net-worth households will be transferring $35.8 trillion, accounting for 42% of The Great Wealth Transfer.
You might be wondering where all this money is coming from. You also may be asking with that much money being given out, how do you make the most of this?
A Whole New World
As the 1980s gave way to the 1990s, our generation entered our peak earning years. Faced with new financial opportunities, along with an increasing awareness we were aging, a whole new world was emerging.
Rapid expansion of technology, coupled with unprecedented investment opportunities, placed wealth building in the hands of more people than ever before.
Tens of millions of boomers took their newfound affluence and re-invested it into real-estate, stocks, bonds, and other financial markets. Tens of millions more spent their money as fast as they could, without much thought for their future lifestyle or their heirs.
There were several massive shakeups in the financial markets as well. Many people lost everything. While the financial markets recovered, not everyone else did.
Accepting and Embracing Change
In the aftermath of the financial shakeups in the 80s, 90s, and 2000s, some boomers managed to regain their financial footing. This occurred by extending their careers, starting new businesses, or being patient as the financial markets recovered.
Many of our generation, however, are still struggling. The reasons are not all the same.
Contrary to what you may have heard in the media, the biggest struggles most of our generation face today, including how to make the most of The Great Wealth Transfer, are not health related or even financially based.
The greatest challenge any of us face is resistance to change. Change is an immutable law of life and yet, most people suffer because of their reluctance to accept and embrace change.
More specifically, we must be willing to let go of outdated, limiting beliefs about money, love, and aging. For it is these limiting beliefs, all of which are based on the past, that keep us from embracing change and welcoming in new opportunities, such as those offered by The Great Wealth Transfer.
Rewriting These 3 Myths
To make the most of anything in our life after 60, including The Great Wealth Transfer, it’s essential that we take an inventory of the stories and beliefs that are keeping us stuck in the past.
Once we identify and release these outdated stories and beliefs, we can begin to replace them with new, more empowering ones.
To do this requires a deeper understanding of myths and beliefs we were raised and educated on. I’ve written extensively about these myths, which I call The Seven Myths of Love & Happiness™.
Of these seven, there are three big myths that play a significant role in how our generation not only perceives itself but will also determine how we navigate The Great Wealth Transfer.
The Myth of Scarcity
With $68 trillion being transferred to younger generations, you can’t tell me money is scarce. Undoing the fearful influence of this myth is essential. No matter how many financial assets you have, refocusing and renewing your outlook on money will be a huge benefit to you and your heirs.
The Myth of Aging
The basis of this myth is that aging is a disease and the older you get the more you should disengage from society. By reframing your belief about aging you become more engaged with living a long, healthy life, something your heirs will benefit from. Couple this with a financial inheritance and your heirs will be in an ideal position to completely rewrite the rules of aging.
The Myth of Shame and Blame
This myth established an emotionally crippling belief we are either not good enough to have what we desire and/or an equally destructive belief others do not deserve to have what they desire. When you shift yourself out of any lingering emotional trauma stemming from shame and blame, the quality of your life is instantly transformed for the better.
I invite you to join me in the video where I will share additional insights along with 30 powerful affirmations to overwrite the influence of these three myths.
Let’s Have a Conversation:
How are you preparing yourself and your heirs for The Great Wealth Transfer? Have you thought what wealth you will be leaving behind and how you will like it dispersed?
Not sure who you are talking about but when I look at all the people that surround me none of them will be leaving much money to their kids. Those trillions of dollars are they divided amongst 10-15 families? The richest in the States and Canada? I worked hard all my life and I managed to save a little but by the time I’m gone, I pray there will be enough money to pay for my funeral. Transfer of wealth! Yeah right! And because of this, governments won’t do anything ti increase pensions because after all there is all that money sitting around. I wish someone would share that wealth with me. Maybe Elon Musk!?
I’m leaving it to charity.
Attention all parents – you have given your children LIFE – quite a gift – and upbringing, hopefully a good one. There is no rule that you have to leave money for them when you die. Rather – ideally adult children would lavish gifts and/or helpful attention to their parents during the parents’ lives. I economize drastically since I was a “depression baby”. I try to become more generous to myself, not thinking of what I will pass on.
the author needs a serious reality check
Please write something relevant for those of us “Baby Boomers” who have worked hard all of their lives in a profession where great wealth was NOT accumulated and now fear whether they will have enough to last the rest of their (longer)lives. I worked four and a half decades in the Medical Profession, I never lived beyond my means, never took big trips or bought anything extravagant. It took much of my late husbands’ and my income to have the basics and while we saved what we could, it takes only one chronic progressive illness to wipe that out. As a widow, I now live under the threat of the social safety net programs that I paid into for decades may soon be eliminated or drastically cut. The “Great Transfer of Wealth” to me means transferring it to the wealthiest to give them a huge tax cut.
I’m guessing you live in the U.S., but things in Canada are digressing towards that kind of health care system from what I see. We might have cheaper health care but by the time you wait forever for it, your illness might not be curable anymore. The situation you are in sounds to me like the majority of people. I only hope I can hang on to some of my savings so my kids can benefit when I pass away. I have a feeling they are going to need it even more than I will.
Agree with Carol and Deborah as a Canadian who knows the pathetic health system we have now.
And also how any saved money from living a non extravagant life is sucked away bit by bit on extremely high taxes. Why? A gov who can’t rein in spending. Could write a book about that. Doubt I will die being able to leave my grandkids money/property.
Hi, Deborah. My name is Lisa Q. I live in Omaha, Nebraska. I’m 56 y/o.
I read thru the email…. intrigued by the title…thinking it sounded like a scam or big hype or something. Am still intrigued and will be reading/researching further.
I read your comment. I had similar thoughts/questions/concerns as I read thru the article.
So…why am I writing to you. ? I resonate with your words…your energy…your honest, transparent curiosity & question. And your curiosity & question are foundational in nature. And I feel/wonder the same concerns & questions. And I felt a Divine Nudge to send a note to you. You are not alone in your concerns & questions.
It would be so cool to hear back from you, Friend. If you want. When you want.
Here’s to a great Monday ahead –
Lisa Q.
Omaha, NE
Deborah, I’m a U.S. citizen, too, and fully empathize with your perspective and concerns. All the “happy talk” about aging is not resonating with me right now. I have a modest lifestyle that I worked very hard to provide for myself only to now see it under threat. For what it’s worth, you’re not alone.
I know, I wondered who she was talking about with this great wealth transfer. Both my parents had mental health problems, and I inherited zero from them. Sadly, I have very little to leave my daughter. I just worry about getting by, especially with our new administration in Washington DC.
Yes with the new regime in the US, only the very monied will benefit by the bought election. Hard for everyone else.
Me too.