Thirty, flirty, and thriving. Forget the dirty thirties: millennials are now entering their era of earning, and they\u2019re only going to get richer as the largest wealth transfer of assets is already underway.<\/p>\n
In a phenomenon dubbed the \u201cPeak 35,\u201d millennials in their 30s have now amassed a net worth that is four times as much as what they previously held, and financial experts says that\u2019s due to the more than 70% of millennials who expect to or have inherited assets from their baby boomer families.\u00a0<\/p>\n
\u201cI think the beautiful part about the \u2018Peak 35\u2019 is it puts us in a position that many generations haven\u2019t been in before,\u201d Gerald Grant III, a certified financial planner and financial advisor with Equitable Advisors, told Fortune. \u201cWhen you start to think about this Great Wealth Transfer, yes, assets have been transferred before, but never to the extent that we see it now and never as intentional as we\u2019ve seen it now.\u201d<\/p>\n
Millennials\u2019 net worth has quadrupled in just five years, according to a report released by Equitable Advisors. Between late 2019 and late 2024, the total net worth of millennials went from $3.9 trillion to almost $16 trillion, and that\u2019s just the start of a greater transfer of assets that yet to come as more baby boomers approach the retirement age.<\/p>\n
With 4 million baby boomers turning 65 and roughly 4 million millennials turning 35 this year, Grant says it\u2019s forcing a new kind of communication between generations that he hasn\u2019t seen before.\u00a0<\/p>\n
\u201cAbout 69% of people indicated that they\u2019re already starting to have these inheritance conversations with parents. And in the past, that wasn\u2019t the norm,\u201d said Grant, who himself works alongside his father, Gerald Grant Jr., at Equitable. The two cowrote a book together in 2020 called The Power of Generational Wealth which looks at all of benefits and challenges that come with inheriting large amounts of wealth.\u00a0<\/p>\n
Like a \u2018shiny red Ferrari\u2019<\/p>\n
This younger generation, Grant and the report said, is in a better position than ever to receive assets because they\u2019re in communication with their elder generation. No longer is inheritance something that must be dealt with during the grieving process as a result of death. Rather, it\u2019s a topic older generations are having with their younger counterparts to ensure an easier, more seamless transition\u2014and help their children get a better footing life at an earlier age than waiting to transfer larger funds later in life.<\/p>\n
\u201cThe analogy that we often use went like, if you have a nice shiny red Ferrari, would you want to give your kids the keys to it without teaching them how to drive it? And the answer really is no,\u201d Grant said.<\/p>\n
The transfer of wealth at an earlier age means millennials are no longer known as the \u201cfinancially lost generation\u201d and are quickly overtaking their baby boomer counterparts. The top 10% of millennials have accumulated on average 20% more wealth than the top 10% of baby boomers did at age 35. Millennials are far exceeding the savings rate of baby boomers at 35, with their accumulated wealth exceeding expectations by 37% in 2022.\u00a0<\/p>\n
However, the level of wealth disparity is also obvious with the new generation of 35-year-olds: the average millennial still has a net worth that is 30% less than their baby boomer relatives at the same age.\u00a0<\/p>\n
Because of the complexity of assets of what people are set to inherit\u2014gone are the days when\u00a0single family homes with white picket fences were the biggest asset passed on\u2014Grant advises everyone, regardless of age or socioeconomic status, to sit with their parents and have these discussions. <\/p>\n
And the numbers back it up: 70% of millennials expect to inherit assets from their families, and while 80% feel confident making smart financial decisions, only 27% feel capable when the situation becomes more complex, like mixing real estate assets with retirement and brokerage accounts.<\/p>\n","protected":false},"excerpt":{"rendered":"Thirty, flirty, and thriving. Forget the dirty thirties: millennials are now entering their era of earning, and they\u2019re…\n","protected":false},"author":2,"featured_media":509115,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,184,185,193,21960],"class_list":{"0":"post-509114","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","14":"tag-wealth","15":"tag-wealth-management"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/509114","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=509114"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/509114\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/509115"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=509114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=509114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=509114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}