Key Takeaways
\nGen X and Millennials are set to inherit a staggering $124 trillion in assets over the next 23 years in what many call America’s Great Wealth Transfer.A new report by The Harris Poll showed that while over 80% of younger generations said they’re confident in their ability to manage an inheritance, it also comes with complicated emotions.Heirs say they feel sadness, pressure, anxiety, and guilt over their impending inheritance.\u00a0<\/p>\n
As Baby Boomers and the Silent Generation prepare to pass on their assets to younger generations, there are plenty of practical and emotional issues to contend with.\n<\/p>\n
It\u2019s called America\u2019s Great Wealth Transfer: Gen X and Millennials are set to inherit a staggering $124 trillion in assets over the next 23 years.\n<\/p>\n
A new report from The Harris Poll found that nearly two-thirds of older Americans said they are confident in their family\u2019s ability to responsibly manage their inheritance, and over 80% of younger generations polled said they\u2019re confident in their ability to do so.\u00a0\n<\/p>\n
However, the report also uncovered the emotional side of this planning. While most heirs said they are grateful that they will receive an inheritance, they\u2019re also experiencing more complex emotions.\n<\/p>\n
The Emotional Aspect Of An Inheritance <\/p>\n
The Harris Poll revealed a lack of family communication about the negative feelings that can accompany this kind of wealth transfer. In fact, a significant number of heirs say they feel sadness (27%), pressure (20%), anxiety (18%), and guilt (15%) over their impending inheritance.\u00a0\n<\/p>\n
At the same time, the poll also found that very few older Americans anticipate their heirs will experience negative emotions relating to the transfer of assets.\n<\/p>\n
\u201cThe younger generation anticipating a significant inheritance should begin by acknowledging the emotional and psychological complexities that often accompany such transitions,\u201d said Vice President of Strategy and Go To Market at the Harris Poll, Melissa Schweizer.\n<\/p>\n
\u201cTo navigate these feelings, they might benefit from educational resources and emotional support, such as financial literacy programs and counseling that specifically address the nuances of wealth inheritance,\u201d Schweizer said.\n<\/p>\n
Schweizer also said starting the conversations around estate and asset planning early can help families address some of these emotions head-on.\n<\/p>\n
\u201cBy preemptively addressing both the practical and emotional facets of inheritance, heirs can honor their loved ones’ legacies while responsibly integrating this wealth into their lives and broader goals,\u201d Schweizer said. \u201cThis approach acknowledges the dual nature of inheritance: While it can provide financial security and opportunities for growth, it also arrives as a result of a personal loss.\u201d\u00a0\n<\/p>\n
Beware of Making Hasty Decisions <\/p>\n
Financial experts warn against making any quick financial decisions after receiving a large sum of money. Instead, private wealth advisor Hanna Grichanik suggests that recipients start by asking themselves a few questions before allocating any of the money.\n<\/p>\n
\u201cThink about the future: How can you be strategic when setting up a portfolio, paying off debt, or stocking up cash for a rainy day? How can you honor your loved one who left you this inheritance?\u201d Grichanik said.\u00a0\n<\/p>\n
These things are all be possible, she said, with the proper planning.\n<\/p>\n
Many savers can use the help: 58% of younger Americans said it\u2019s harder for them to accumulate wealth than it was for their parents\u2019 generation due to the rocky economic climate, according to The Harris Poll.\n<\/p>\n
Gen X has had a particularly tough time saving for things like retirement, and they\u2019re the current \u201csandwich generation\u201d taking care of both aging parents and children.\n<\/p>\n
If heirs have the right money-management strategy, this upcoming wealth transfer could provide them with much-needed financial relief, experts said.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Key Takeaways Gen X and Millennials are set to inherit a staggering $124 trillion in assets over the…\n","protected":false},"author":2,"featured_media":133317,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,184,185],"class_list":{"0":"post-133316","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-finance","12":"tag-personal-finance","13":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/133316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=133316"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/133316\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/133317"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=133316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=133316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=133316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}