Generation Y to Inherit $30 Trillion
Generation Y, aka “The Millennial Generation”, are becoming the primary focus for financial service firms. This generation is even larger than the boomer generation, consisting of some 80 million plus. Studies show that Gen Y could estimate anywhere from $30 trillion from the boomers; “could” I guess is the keyword here. Dan Kadlec of TIME quotes “At one time, boomers were expected to benefit from wealth transfer at some $41 trillion. Then reality happened; incomes stagnated, people lost their jobs, and for buy-andhold investors the stock market has been dead money for 13 years. More recent estimates put the boomer inheritance at $11.6 trillion.”
The bottom line here is that Gen Y has seen the struggles their parents face when it comes to retirement. These struggles have made this generation extremely conservative, and hesitant about the stock market. For financial advisors, there is a huge opportunity, not only to educate and help out boomers, but to also establish relationships with Gen Y. Doing good for mom and dad, could lead you to the next huge transfer of wealth to the millennial generation.