Inter-Generational Wealth Transfer -- October 19, 2024

Locator: 48603WEALTH.

Tag: inter-generational wealth transfer

As a reminder from an earlier post:

April 16, 2022: how Gallup "defines" the generations, or, link here (wiki, slightly different):

• generation Alpha (born 2010 - mid-2020s): 0 - 14 years of age. Grandsons' generation.
  
• generation Z (born 1997 - 2004): 20 - 27 years old. Granddaughters' generation.
  
• millennials (Y) (born 1981 - 1996): 28 - 43 years old. Younger daughter's generation.
  
• generation X (born 1965 - 1980): 44 - 59 years old. Older daughter's generation.
  
• baby boomers (born 1946 - 1964): 60 - 78 years old. My generation. RMDs.
  
• traditionalists (born before 1946): over 76 years old.

Now this, link here.

For once, the unluckiest generation seems to have benefited from exceptionally lucky timing.

From 2019 to 2022, home prices catapulted 41 percent, making it the best three-year period on record.

And millennials were perfectly positioned to maximize their benefit. Many had only recently entered the housing market; suddenly, the biggest financial bet of their lives had paid off with unprecedented speed. They’d leveraged their 5 or 15 percent down payment into a claim on record appreciation of their home’s entire value. 

A lot of folks are going to say this is "fake" wealth.

But there's more that no one ever seems to mention:  RMDs.

Generation X and the millennials are going to inherit "real" wealth via RMDs. From an earlier post:

October 7, 2024:

Inter-generational wealth transfer. Liz Ann Sonders. A recurrent theme on the blog.  Link here. Demographics. Wealth transfer.

• $84 trillion
• over next twenty years
• largest share, $30 trillion to Gen X