Great Wealth Transfer: Making History for Women

Women will manage unprecedented amounts of money and reshape lives.

The Great Wealth Transfer is a colossal shift in who owns money in the United States. Currently, half of all wealth is held by Baby Boomers. Over the next 20 years, this wealth will be inherited, and women will control more money than they ever have before.

A Historical Shift

This gender shift is happening in two significant ways. First, women tend to live longer than men, so more women Boomers will manage their wealth independently as they outlive their spouses. Second, wealth will be handed down through generations. While Gen X will receive a portion, the much larger millennial generation — with its record numbers of single women — will end up with the majority. The Numbers Some sources estimate this transfer to be around $84 trillion, while others suggest it could be as high as $129 trillion, influenced by government policies during the pandemic. This transformation is already underway.

By 2030, American women are expected to manage at least $30 trillion, more than the national gross domestic product (GDP). We’ve never seen this kind of change in our lifetimes, or in our grandmothers’ lifetimes.

The Implications for Women and Wealth

This unprecedented shift offers unique opportunities and challenges for women. Here’s how women can harness the power of this wealth transfer:

1. Financial Education and Literacy. With more money comes more responsibility. Financial education and literacy are crucial. Everyone should seek to understand investment strategies, financial planning, and wealth management. Empowering oneself with knowledge ensures better decision-making and financial independence.
2. Strategic Investing. Investing wisely can significantly grow inherited wealth. Consider diversifying portfolios, investing in stocks, bonds, real estate, and other assets. Working with a financial professional can provide personalized strategies to work toward aligning investments with long-term goals.
3. Philanthropy and Social Impact. Women are known for their philanthropic efforts. With increased wealth, women have the power to drive significant social change. Investing in causes that matter can not only improve communities but also provide tax benefits. Establishing charitable foundations or trusts can be a way to leave a lasting legacy.
4. Estate Planning. Proper estate planning addresses that wealth is preserved and passed on according to one’s wishes. Create or update wills, set up trusts, and designate beneficiaries to manage estates effectively. Consulting with estate planning professionals can provide confidence and protect assets for future generations.
5. Networking and Mentorship. Building a network of like-minded women can provide support and opportunities for collaboration.

Joining financial forums, attending investment seminars, and seeking mentorship from successful women investors can enhance financial acumen and open doors to new possibilities.

Planning History

The Great Wealth Transfer is not just a financial shift; it’s a historical moment for women and wealth. As women stand to inherit and manage unprecedented amounts of money, they have the opportunity to reshape the economic landscape. By embracing financial education, strategic investing, philanthropy, estate planning, and networking, women can better prepare for this wealth to not only be preserved but also grown and utilized to create lasting impact.

This transformation offers a chance for women to pursue financial independence, drive social change, and leave a powerful legacy. The time is now for women to prepare, engage, and lead in this new era of wealth management.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

This article was prepared by FMeX, LPL

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