Did you know that there is approximately $156 Trillion in U.S. based assets? Now what if I told you that Baby Boomers (1946–1964) accounted for HALF of those assets. This means that Gen X (1965–1980) and Millennials (1981-1996) will likely inherit half of the U.S. assets by 2045.
Here are some other interesting findings (see the chart at the bottom, as well):
- Baby Boomers have more saved in the form of pensions than Gen X and Millennials combined.
- Real Estate is the most popular form of asset amongst Gen X and Millennials, but Equities and Mutual Funds comes in 1st for Baby Boomers. (Did you know that the average price of a U.S. house has risen 500% since 1983?)
- Durable Goods (household goods, jewelry, vehicles, electronics, etc.) account for 11.27% of Millennials assets compared to the Baby Boomers which only accounts for 3.71%.
- Private businesses, or self/family owned businesses, have remained equally as important to individuals accounting for roughly 10-13% of assets from each generation.
If you are part of the Baby Boomer generation, have you asked yourself these questions?
- Is the next generation prepared to inherit my assets? If not, what steps can I take today to prepare them?
- Do I have proper beneficiary designations and estate planning documents in place?
- Have I discussed my finances with my family?
- Have I discussed my specific requests with my beneficiaries?
- Have my beneficiaries met my financial advisor, attorney, insurance agent, etc.?
Source: Visual Capitalist, Cerulli Associates, Federal Reserve