Lets talk about The Great Wealth Transfer, what this means for the economy, and why millennials are soon about to become the Wealthiest Generation - Enjoy! Add me on Instagram: GPStephan
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THE GREAT WEALTH TRANSFER:
On the surface, The Great Wealth Transfer refers to a VERY LARGE shift in money from Baby Boomers to Millennials…and, what makes this so significant is that there’s a LOT of money about to change hands.
According to the Federal Reserve, Americans age 70 and older had a total net worth of nearly $35 TRILLON DOLLARS. On top of that, older generations will hand down an estimated $61 TRILLION DOLLARS from 2018 to 2042, shaping the way our economy allocates its resources, and prompting the questions: what’s being inherited, will it last, how will it be taxed.
One: Millennials will soon become the wealthiest generation on record.
Eventually - their socially conscious ideologies will become more of a reality, and - in the process, we’re likely to continue moving towards tech, green energy, solar, social media, etc.
Two: Millennials are becoming Financially Savvy.
I think our generation has a much stronger grasp of risk, returns, diversification, and the importance of dollar-cost-averaging into index funds. On top of that, even though 40% of Millennials surveyed said they don’t trust others with their money - 64% said they trust established wealth management brands more than new players - meaning, there’s an even balance between people who want to do it themselves on WallStreetBets, and hire a financial advisor who tells them not to panic sell.
Three: Taxes are inevitable.
For inheritances above $11 million dollars…and, soon to be above $5.5 Million in 2026…40% goes to the IRS. Under that threshold - inherited investments are ONLY TAXED on the GAINS that have occurred AFTER that person’s tasing…meaning, someone could’ve invested $100,000 into Tesla when it was $20 per share…passed it on to their children at a market value of $5 million dollars…and, with a stepped up tax basis…that heir would only pay any tax on profits above $5 million dollars. Ultimately, this “Stepped Up Tax Basis Loophole” is something that is probably going to be eliminated at some point….but, just something to keep in mind.
Four: Economic Spending is going to increase.
This is, arguably, a great thing for the economy - because, when 50% of inherited wealth is spent - that’s a LOT more money getting sent back into circulation. We could see more real estate changing hands, more cars being bought and sold, more time spent on leisure activities and vacation, and - overall - that’s going to boost everything else alongside with it.
Five: New Opportunities Are Going To Present Themselves.
As one door closes, another opens - and, inevitably, investments and entrepreneurial ideas will come from a gradual shift in demand, trends, and macro changes. That could also mean that, when millennials prefer CASH over STOCKS - other, alternative investments could take precedent - like, even more Cryptocurrency.
So, overall…The Great Wealth Transfer IS going to have a significant impact on our entire economy over the next few decades…and, even if you don’t get that $11 million dollar trust fund…there will still be ever-changing opportunities that stem from more money being spent, moved, and built each and every year.
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*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/
GET YOUR FREE STOCK WORTH UP TO $1000 ON PUBLIC & SEE MY STOCK TRADES - USE CODE GRAHAM: http://www.public.com/graham
NEW BANKROLL COFFEE NOW FOR SALE: http://www.bankrollcoffee.com
DOWNLOAD MY NEW FINANCIAL APP: https://hungrybull.page.link/graham
JOIN THE WEEKLY MENTORSHIP - https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/
THE NEW PODCAST: https://www.youtube.com/channel/UCMSYZVlQmyG8_2MkIKzg0kw
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://the-real-estate-agent-academy.teachable.com/p/the-youtube-creator-academy/?product_id=1010756&coupon_code=100OFF - $100 OFF WITH CODE 100OFF
THE GREAT WEALTH TRANSFER:
On the surface, The Great Wealth Transfer refers to a VERY LARGE shift in money from Baby Boomers to Millennials…and, what makes this so significant is that there’s a LOT of money about to change hands.
According to the Federal Reserve, Americans age 70 and older had a total net worth of nearly $35 TRILLON DOLLARS. On top of that, older generations will hand down an estimated $61 TRILLION DOLLARS from 2018 to 2042, shaping the way our economy allocates its resources, and prompting the questions: what’s being inherited, will it last, how will it be taxed.
One: Millennials will soon become the wealthiest generation on record.
Eventually - their socially conscious ideologies will become more of a reality, and - in the process, we’re likely to continue moving towards tech, green energy, solar, social media, etc.
Two: Millennials are becoming Financially Savvy.
I think our generation has a much stronger grasp of risk, returns, diversification, and the importance of dollar-cost-averaging into index funds. On top of that, even though 40% of Millennials surveyed said they don’t trust others with their money - 64% said they trust established wealth management brands more than new players - meaning, there’s an even balance between people who want to do it themselves on WallStreetBets, and hire a financial advisor who tells them not to panic sell.
Three: Taxes are inevitable.
For inheritances above $11 million dollars…and, soon to be above $5.5 Million in 2026…40% goes to the IRS. Under that threshold - inherited investments are ONLY TAXED on the GAINS that have occurred AFTER that person’s tasing…meaning, someone could’ve invested $100,000 into Tesla when it was $20 per share…passed it on to their children at a market value of $5 million dollars…and, with a stepped up tax basis…that heir would only pay any tax on profits above $5 million dollars. Ultimately, this “Stepped Up Tax Basis Loophole” is something that is probably going to be eliminated at some point….but, just something to keep in mind.
Four: Economic Spending is going to increase.
This is, arguably, a great thing for the economy - because, when 50% of inherited wealth is spent - that’s a LOT more money getting sent back into circulation. We could see more real estate changing hands, more cars being bought and sold, more time spent on leisure activities and vacation, and - overall - that’s going to boost everything else alongside with it.
Five: New Opportunities Are Going To Present Themselves.
As one door closes, another opens - and, inevitably, investments and entrepreneurial ideas will come from a gradual shift in demand, trends, and macro changes. That could also mean that, when millennials prefer CASH over STOCKS - other, alternative investments could take precedent - like, even more Cryptocurrency.
So, overall…The Great Wealth Transfer IS going to have a significant impact on our entire economy over the next few decades…and, even if you don’t get that $11 million dollar trust fund…there will still be ever-changing opportunities that stem from more money being spent, moved, and built each and every year.
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/
What's up you guys, it's graham here so throughout the last year, we've all seen the great resignation where the number of workers who quit their jobs broke an all-time us record, the great reset which claimed that by 2030 you'll learn nothing and be happy, and now we Have a new topic that's beginning to gain a lot more attention and almost certainly going to happen a lot faster than people expect, and that would be the great wealth transfer. Lately, there's been no shortage of articles and headlines talking about how the greatest wealth transfer in history has just begun warning you on how to prepare, while young people are being robbed of their future forever. So, given how the vast majority of my audience is a millennial and will be directly affected by this, let's talk about exactly what the great wealth transfer is and why experts say that this transfer will constitute the largest redistribution of wealth in human history. Although before i answer that, we should first transfer a tap to that like button by making it turn black for the youtube algorithm with just a quick second of your time, you'll get access to almost a dozen hours that were spent planning, filming and editing.
This video all for the cost of a gentle tap of the like button or subscribe, if you haven't done that already so thank you guys so much now with that said, let's begin alright! So, first we need to talk about what the great wealth transfer actually is and exactly what's at stake without having to spend nineteen thousand five hundred dollars for an annual subscription that details. The inner workings of the sixty trillion dollar redistribution of wealth. But let's not get ahead of ourselves so quickly and we'll start with the basics. On the surface, the great wealth transfer refers to a very large shift in money from baby boomers to millennials, and what makes this so significant is that a lot of money is about to change hands like a lot a lot.
According to the federal reserve, americans aged 70 and older had a total net worth of 35 trillion dollars, and on top of that, older generations will hand down an estimated 61 trillion dollars from 2018 to 2042 shaping the way our economy allocates its resources and prompting the Questions what's being inherited, will it last? How is it going to be taxed, and why is this a problem? Well, keep in mind that as of right now, millennials are significantly further behind than almost every single financial milestone, owning less wealth, taking on more debt, earning a smaller amount, delaying home ownership and refusing to invest so they're quickly falling behind. Not only that, but it was also found that millennials own just five percent of all us wealth. However, that's about to change because they are soon going to become the wealthiest generation on record, so that, of course begs the question: what exactly is being passed down and why could this be one of the biggest opportunities for everybody watching? Well, according to the federal reserve, 20 trillion dollars is going to come in the form of corporate equities and mutual fund shares, or in other words, stocks, bonds, businesses and other assets that could be liquidated. Almost 15 trillion dollars is held in the form of real estate. Like a primary residence, vacation, home rental property or maybe even a corporate headquarters and the remaining 21 trillion dollars falls within the other category like family, heirlooms, art cash, collectibles and maybe even a priceless artifact that you had no idea existed until you went on the antique Roadshow in total, that's about 60 trillion dollars trading hands over the next 30 years, which, by the way, amounts to 27 of all u.s wealth and 157 of u.s gross domestic product. So where is it all going nursing homes just kidding kind of well? One study found that adults who receive an inheritance save just half while spending donating or losing the rest and nearly 20 percent of baby boomers who received a hundred thousand dollars or more spend their entire gift. That means, if we do some very basic napkin math about 30 trillion dollars, is soon gon na enter the economy through the sale of assets and additional spending. But here's where things get very interesting, hsbc surveyed, that retirees expect to leave an average inheritance of a hundred and seventy seven thousand dollars.
Although actual numbers show something quite a lot different. The federal reserve found that the median inheritance was 69 000 and the average, when you account for the vast sums of wealth, was 707 000, not to mention things were even larger if you have a trust fund with an average balance of four million. Sixty two thousand nine hundred and eighteen dollars so yeah, that's a lot of starbucks in avocado test. So obviously, when you hear numbers like this on the surface, it makes you realize that most wealth is highly concentrated and passes down from one generation to another.
In fact, if we break this down even further, it was found that the least wealthy group of families have received, on average a sixty one hundred dollar inheritance, while the wealthiest one percent of families have received, on average a 2.7 million dollar inheritance. Although, despite some of these big numbers being thrown around while we're on the topic of a wealth transfer, here's what i actually found the most surprising, it was found that seventy percent of families lose their wealth by the second generation and ninety percent lose their wealth by The third generation, why well, first of all, contrary to what a lot of people believe less than five percent of very high net worth individuals worth more than five million dollars, inherited their wealth? That's it. The other 83.7 percent are completely self-made, and the remaining 11.6 percent have inherited money and then turned it into something, even bigger. That leads people to realize that vast fortunes are often created from those who grew up in families at or below the middle income and as a result, their children see the hard work and struggles they had to endure for what they have, but still 70 of the Time their children take this wealth for granted and they don't take the proper precautions to watch it closely. And so they wind up with less than where they started by the third generation, though they tend to be so far removed from the efforts of their grandparents and by not seeing these efforts firsthand. Ninety percent wind up no wealthier than when their grandparents first started out, thereby repeating the cycle over again. This is something very important to mention, because a great wealth transfer is very likely to be spent paying down debts, mortgages and student loans and then reinvested or spent on other endeavors. Like did you know, it takes the average recipient of an inheritance 19 days until they buy a new car, though, even though that could be good news for tesla shareholders and car salesmen.
The bigger talking point isn't so much the cash stocks and real estate, but instead the value and transfer of privately owned and operated businesses which make up 21 trillion dollars of that total amount. So just tear this out on the surface. The us census bureau estimates that baby boomers own about two-thirds, the roughly 4 million u.s businesses with employees and as they get older 70, are expected to sell those businesses as a way to pay for retirement. After all, only 40 percent of u.s family-owned businesses transition into a second generation business.
Approximately 13 are passed down successfully to a third generation and only three percent survive to a fourth generation or beyond. And i know this sounds a bit morbid, but in almost half of all cases the business's failure is a direct result of the founder's passing meaning very few. Businesses survive beyond the first generation, leaving the reality that over the next 10 to 30 years, the entire landscape of small business is going to change so overall in terms of what this means and how this impacts you, whether or not you're receiving a large windfall here's. What you need to know, one millennials will soon become the wealthiest generation on record.
This means that gamestop, amc and dogecoin will soon become the staples of the american economy just kidding, but it does mean that eventually, their socially conscious ideologies will become more of a reality and in the process we're likely to continue moving towards green energy, solar tech, electric Vehicles, social media and designer coffee shops, where everybody wears converse now, two millennials are becoming much more financially savvy. I think our generation has a much stronger grasp on risk returns, diversification and the importance of dollar cost averaging a good ol index fund. On top of that, even though 40 of millennials said that they would not trust somebody else with their money, 64 said that they would trust established wealth management brands more than the new players, meaning there's a very even balance between the people who want to do it Themselves on wall street bets and the people who hire a financial advisor to tell them not to panic, sell the three. The irs always wins, and taxes are inevitable for inheritances above 11 million dollars and soon to be five and a half million dollars in 2026. 40 goes to the irs, which is going to add up to a substantial amount. Now what's interesting is that, under that threshold inherited investments are only taxable on the gains that occurred after that person's passing meaning. Somebody could have invested a hundred thousand dollars into tesla 20. A share passed it on to their children, with a market value of five million dollars, and with that stepped up tax basis, their children would only be responsible for paying taxes on profit, above that five million dollars.
Ultimately, this stepped up tax basis loophole is probably going to be eliminated at some point, but it is something to keep in mind before economic spending is probably going to increase. This is arguably a great thing for the economy, because when 50 percent of inherited wealth is spent, that means a lot more money going back into circulation. We could see more real estate, changing hands, cars being bought and sold, and more money being spent on leisure activity and vacations. So, overall, that's gon na boost everything else.
Alongside with it and five new opportunities are going to present themselves as one door closes. Another opens, and inevitably investment in entrepreneurial ideas will come from a shift of demand, trend and macro changes. That could also mean that when millennials prefer cash over stocks, that could lead to a surge in alternative assets, like maybe cryptocurrency. So, overall, the great wealth transfer is going to have a significant impact on our entire economy over the next few decades.
And even if you don't get that 11 million trust funds, there's still going to be ever-changing opportunities for money being spent, moved and built each and every year. Ultimately, this will lead to a lot more demand. New businesses will be built and a lot more money is going to be spent. Economics explained really said it best when they mentioned that the actual impact is going to be hard to predict, but money being moved from the hands of a generation with a high intensity to hoard and save wealth to a generation where 38 would rather spend money.
Now than save it, it's going to create some type of boom, but we have to wait to see exactly what it is so with that said, you guys thank you so much for watching also make sure to subscribe. Hit. The like button add me on instagram or in my second channel the gram stefan show i post there every single day - i'm not posting here. So if you want to see a brand new video for me every single day, make sure to add yourself to that. And lastly, if you want a completely free stock, now worth all the way up to a thousand dollars to start, the new year use the link down below in the description and sign up for public using the code gram you may as well do that it's pretty Much like free money enjoy. Thank you so much and until next time.
what?????? why would the millennials get the money and not the gen X????
It seems strange not to hear "What's Graham you guys, it's up here" or some other variation. This time Graham said it in the normal way.
My millennial grandchildren will enjoy my estate and trust fund I created years ago.
It will be interesting to see how many "financial advisors" still exist in the future when the younger generations realize they can learn everything online without having to pay exorbitant fees like their predecessors
omg he said the intro the correct way round, the world is ending 😛
Great timing! My husband and I had this very conversation last night! We were POOR as kids. We both had single moms and lived in trailer parks. But we worked, I created a business, we invested and purchased assets. Now we are curious how our grown kids will handle that money. We decided we don’t trust them not to spend it all so into a trust fund it goes. It will be interesting though because we are super frugal and were able to save BECAUSE we started out poor. They did not have that same experience. Great topic Graham! I enjoyed the video!
after 15 years as a bartender , last year i finally quit my job, open a small business and bought my first rental house. olso catched the market rally from 2020 , i was lucky enough to have some good savings .And to be honest, most of these things happened thanks to you, Kevin and Andrei.
Let's murder anyone over age 50 and boom wealth transfer.
Graham Stephan’s YouTube channel makes 40% of all US millennial wealth.
"I think our generation has a much stronger grasp on risk, return, diversification …."
WSBer : "Time to YOLO 100% into a short call option on GME ending today. The apes said it can't fail."
Literally none of this will matter in 10-20 years due to America’s birth rates lol.
I just wanna quit and panhandle and hang out all day, but I have a kid so I'm screwed
My mom passed to covid a few months ago. Trumps tax bill eliminated the death tax and a whole bunch of other things and all our financial advisors are warning us to settle all the inheritance asap before biden starts meddling with taxes like they keep hinting at. Luckily it looks like it’s gonna be awhile but still. Something to think about as the death tax may be coming back.
The real reasons why you feel like a working slave is… well, because you are.
It's called the Cantillon Effect. You are scammed out of your savings and salary with the biggest hidden tax ever, inflation. The governments print money to benefit themselves, the welfare abusers and super rich bailout, subsidy and government contract receivers.
In 1965 a family father was usually the sole provider for the average US family. He would probably make around 10k USD per year. A small house would also cost 10k to buy. Imagine earning a house per year today. And it was simply taking away from you by your wage not increasing, as it's inherent value, the value of your bodily work, is redistributes to the very rich and very poor parasites of society. 10k USD was 285 gold coins at a value of 35 USD per coin. Today the very same gold coin is $1800 (so $513,000/year), and it's not like gold increases or decreases drastically.
Remove the politicians, bailout banks, war profiteers and welfare.
Ain't got money now and doubt I'll have money in the future. Cost of living is too high. I would like a studio one day to make software, games, and entertainment but that's just not going to ever happen. I feel like I should have been there already, but there's not even money to save or invest. Got student debt hard to have a stable job. I'm not optimistic for the future at all. Why get married if I can't even support myself; even while working a job.
Ha jokes on you Graham, the like button doesn't turn Black for me, it turns white cause I've got dark mode on hahaha
These videos and Graham’s advice have been life changing for me! I appreciate you good sir!
Wealth will transfer from Baby Boomers to Millennials — so it just skips over Gen X? Or did you forget about us like every other Millennial and Baby Boomer has. Actually I really like being on the sidelines for these conversations. Gen X — we do our own thing
must be people worried about a market crash lol
Unless there's a serious tax cut, like down to Russian income tax levels (13% on income up to 65k USD and 15% on income above 65k USD), the US will necessarily end up with an oligarchy based economy. Where only 20-30 companies/owners and the state make up almost the entire economy except for like self employed tradies.
It's not right that inheritance tax will be 40%. Move to Florida.
Coming? You're a little late on this one…but I suppose as it will grow it is therefore coming.
AMC Stocks ! Shorts haven’t covered = WEALTH TRANSFER TO THE MOOOOOOOON
Jeebus, I'm well ahead of my peers based on that chart.
Hi Graham Happy New year Thanks for the video. ❤️😀
Meanwhile, us GenXers are getting rich AF right under everyone's noses 😎
"Whats up you guys? Its Graham here? " you got to sober up Guys
Guys I’m still invested in AMC? Should I get out now or does anyone think there’s still a chance?
"Refusing to invest" dude I'm making 60k and living in a 1 bedroom and struggling to save 5-10k by sacrificing everything remotely fun lol
Glad that I’m not the only one a part of the great resignation. Sad part is that I took a pay cut, but at least I work from home now