Latest news with #GreatWealthTransfer
Yahoo
4 days ago
- Business
- Yahoo
Capital Group Study: Financial Advisors Have Historic Opportunity to Empower More Women to Invest
New research reveals how financial advisors can grow their practice by engaging more women clients during the Great Wealth Transfer LOS ANGELES, June 18, 2025 /PRNewswire/ -- Many women are poised to become "double inheritors" of the more than $100 trillion expected to transfer from baby boomers and older generations by 20481, revealing a historic chance for financial advisors to empower more women to invest. New research from Capital Group, one of the world's largest and most experienced active investment managers, underscores the critical steps financial advisors can take to support more women – many of whom begin investing later than men - to seek financial advice and begin investing, while also growing their practices. Women represent half the U.S. population and control over $10 trillion in household financial assets. Despite this, they are nearly 40% more likely to start investing after age 35 compared to men. Capital Group's survey of 814 women with investment accounts highlights key barriers: 26% of women feel they lack sufficient funds to work with a financial advisor. One in three women find their financial situations complex and stressful. Women are less likely to seek financial help after major life events (e.g. marriage), despite being more open to advice than men. "Our research shows that financial advisors can bridge the investing gap between women and men by changing how they market to, and communicate with women, many of whom are hesitant to seek advice," said Wassan Kasey, Senior Vice President, Advisor Practice Management Consultant, Capital Group. "Marketing online and through a woman's social networks, appealing to her financial aspirations, and clearly communicating the value of your advice versus its cost can help overcome this hesitancy. By helping women seize the opportunities provided by the Great Wealth Transfer, advisors can also grow their own businesses." This research offers four clear steps for advisors to engage more women during this unprecedented wealth transfer: Increase and target online marketing to women, who use search engines first when looking for an advisor. Frame your professional financial services in terms of value after cost, and simplify onboarding. Appeal to a woman's aspirations – like financial freedom – rather than life events, like marriage or growing a family. Categorize women's communication preferences - prioritize phone calls for check-ins and in-person meetings for larger discussions, and lead with questions rather than directives. By emphasizing mental and financial well-being, simplifying onboarding, and tailoring communications to different women investors, advisors can help women gain confidence and more actively participate in their financial futures via investing. This opportunity underscores the significant potential within the female investor demographic for financial advisors looking to increase client acquisitions and grow their practices. About Capital Group Capital Group, home of American Funds, has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research, and individual accountability since 1931. As of March 31, 2025, Capital Group manages approximately $2.8 trillion in equity and fixed income assets for millions of individuals and institutional investors around the world. Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups. For more information, visit How the survey was conductedCapital Group partnered with Kantar to conduct an online survey of 1,504 U.S. consumers (including 814 women) from October 22, 2024, through November 5, 2024. To qualify, survey participants had to be between 22 and 78 years of age, with some influence in financial decision making for their household and one investment account (e.g., brokerage account, retirement savings account, college savings account). Participants also had to meet a minimum level (which varied by age) for household income or investible assets. To ensure accurate representation, the final data was weighted based on age, gender, household income, region and race/ethnicity. Media Contact:Sarah 1 Source: The Cerulli Report, High-Net-Worth and Ultra-High-Net-Worth Markets 2024. View original content to download multimedia: SOURCE Capital Group Companies Sign in to access your portfolio
Yahoo
14-06-2025
- Business
- Yahoo
Women Are About To Inherit $30 Trillion in ‘Great Wealth Transfer' — How To Prepare for Your Windfall
American women are poised to inherit $30 trillion in wealth in the next 10 years in what experts are calling the Great Wealth Transfer, already in progress. Much of this money will be passed generationally, and a significant amount will move from men to their wives, according to The Rising Wealth of Women, a Bank of America Institute report published last year. Although this transfer is narrowing wealth disparities between women and men, the study found that women are still less confident in their ability to manage a financial windfall. Watch Out: Read Next: A recent survey from Citizens Bank found 66% of Gen Z women and 50% of millennial women said they'd delayed actively managing their wealth because they lacked confidence or didn't know how to do it, and just 16% felt completely confident in their ability to manage an inheritance. Keep reading to learn how to take control of your money and prepare for your eventual windfall. The vast majority of women who've already inherited money from their parents or their husbands felt unprepared. Global wealth manager UBS noted in its May Own Your Worth report that 40% of women who inherited from their parents had done so with no wealth-transfer or estate plan in place. Widowed women faced similar predicaments, with 25% not even knowing where their husbands' wealth was. At the very least, know what assets your family has, where they're held and how they'll pass on to you. Tax planning is also important, according to 87% of the inheritance recipients surveyed by UBS. Discover More: Defining your short-term and long-term goals in writing gives you a blueprint to guide your financial decisions now and after you've received your inheritance. These priorities might include: Building an emergency fund Saving for retirement Paying off debt Starting a business Saving for your kids' education Buying a home Planning your own estate It's never too early to start working toward your financial goals. A budget is the best way to do it. In addition to eliminating waste, it gets you in the habit of spending mindfully and deliberately. That accountability is the key to financial health, and it'll give you more choices when it comes time to decide how to use your inherited funds. A high percentage of women have never had their own investment account — and those who do invest do so more conservatively compared to men. Bank of America found that they allocate smaller percentages of their portfolios to stocks, for example, and are less likely to invest in risky assets like cryptocurrency. That's not a bad thing if it aligns with your risk tolerance. But if you're staying out of the market or investing conservatively because you don't feel competent enough to take more risk, make financial education a priority. Many resources are available online. You can find continuing/community ed courses through local colleges and universities. A certified financial planner (CFP) can help advise you on the best approach to meet your financial goals and help you figure out how your inheritance fits into that plan — and into your own estate plan as well. When the time comes, they can also advise you about the benefits of working with an attorney, tax accountant and/or insurance agent to protect your expanding assets. It's not unusual to have mixed feelings about planning for an inheritance. After all, it forces you to acknowledge your family members' and your own mortality. But laying the groundwork now can put everyone's minds at ease knowing that you're ready to receive this transfer of wealth and prepare the next generation to receive theirs. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard Clever Ways To Save Money That Actually Work in 2025 I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money This article originally appeared on Women Are About To Inherit $30 Trillion in 'Great Wealth Transfer' — How To Prepare for Your Windfall
Yahoo
13-06-2025
- Business
- Yahoo
Women Are About To Inherit $30 Trillion in ‘Great Wealth Transfer' — How To Prepare for Your Windfall
American women are poised to inherit $30 trillion in wealth in the next 10 years in what experts are calling the Great Wealth Transfer, already in progress. Much of this money will be passed generationally, and a significant amount will move from men to their wives, according to The Rising Wealth of Women, a Bank of America Institute report published last year. Although this transfer is narrowing wealth disparities between women and men, the study found that women are still less confident in their ability to manage a financial windfall. Watch Out: Read Next: A recent survey from Citizens Bank found 66% of Gen Z women and 50% of millennial women said they'd delayed actively managing their wealth because they lacked confidence or didn't know how to do it, and just 16% felt completely confident in their ability to manage an inheritance. Keep reading to learn how to take control of your money and prepare for your eventual windfall. The vast majority of women who've already inherited money from their parents or their husbands felt unprepared. Global wealth manager UBS noted in its May Own Your Worth report that 40% of women who inherited from their parents had done so with no wealth-transfer or estate plan in place. Widowed women faced similar predicaments, with 25% not even knowing where their husbands' wealth was. At the very least, know what assets your family has, where they're held and how they'll pass on to you. Tax planning is also important, according to 87% of the inheritance recipients surveyed by UBS. Discover More: Defining your short-term and long-term goals in writing gives you a blueprint to guide your financial decisions now and after you've received your inheritance. These priorities might include: Building an emergency fund Saving for retirement Paying off debt Starting a business Saving for your kids' education Buying a home Planning your own estate It's never too early to start working toward your financial goals. A budget is the best way to do it. In addition to eliminating waste, it gets you in the habit of spending mindfully and deliberately. That accountability is the key to financial health, and it'll give you more choices when it comes time to decide how to use your inherited funds. A high percentage of women have never had their own investment account — and those who do invest do so more conservatively compared to men. Bank of America found that they allocate smaller percentages of their portfolios to stocks, for example, and are less likely to invest in risky assets like cryptocurrency. That's not a bad thing if it aligns with your risk tolerance. But if you're staying out of the market or investing conservatively because you don't feel competent enough to take more risk, make financial education a priority. Many resources are available online. You can find continuing/community ed courses through local colleges and universities. A certified financial planner (CFP) can help advise you on the best approach to meet your financial goals and help you figure out how your inheritance fits into that plan — and into your own estate plan as well. When the time comes, they can also advise you about the benefits of working with an attorney, tax accountant and/or insurance agent to protect your expanding assets. It's not unusual to have mixed feelings about planning for an inheritance. After all, it forces you to acknowledge your family members' and your own mortality. But laying the groundwork now can put everyone's minds at ease knowing that you're ready to receive this transfer of wealth and prepare the next generation to receive theirs. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard The 5 Car Brands Named the Least Reliable of 2025 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth This article originally appeared on Women Are About To Inherit $30 Trillion in 'Great Wealth Transfer' — How To Prepare for Your Windfall Sign in to access your portfolio
Yahoo
06-06-2025
- Business
- Yahoo
There's Almost 600K More Millionaires. That's Not Necessarily a Good Thing
If you love something, let it go, the old saying goes … but an advisor probably didn't come up with that. The Great Wealth Transfer is already upon us, and while it's debatable exactly how much money will change hands over the next quarter of a century, most agree it is at least in the tens of trillions. Market researcher Capgemini estimates that $84 trillion will transfer to inheritors over the next 23 years. Additionally, the world's millionaire population increased by 600,000 last year — 94% of whom were in the US. That's good news for older clients' children, but the concern for advisors is that the vast majority of next-gen high net worth clients — 81% — will switch from their parents' wealth manager within two years after receiving their inheritance, according to Capgemini's latest World Wealth Report. Advisors are recognizing that what worked for a client might not work for their kids, who often want more aggressive investment strategies in their portfolios and access to digital interfaces with their wealth managers. 'The attrition rate should be a wake-up call for the industry,' said Kyle DePaolo, co-founder of DePaolo & May Strategic Wealth. 'Too many advisors focus solely on the primary wealth holder and neglect building trust and relevance with the next generation.' READ ALSO: Goldman, Morgan Stanley, JPMorgan Layoffs to Hit Northeast and Wedbush and Dan Ives Launch AI Revolution ETF While 81% does sound like a lot, it's not surprising that clients and their younger children would have different financial concerns and goals. While baby boomers are focused on wealth preservation, next-gen HNW clients are predominantly risk-takers, interested in assets such as private equity and cryptocurrency, the report found: Next-gen HNW clients look for comprehensive financial planning, or concierge service, and they seek out wealth managers who can advise on everything from portfolio management, to travel, to education, the report found. Younger clients also want an advisor they can seamlessly communicate with via multiple channels including phone calls, emails, and digital platforms. They have a strong preference for video calls. 'Firms that can successfully integrate digital-first services and enhance omnichannel experiences will have the upper hand in retaining, attracting, and delighting this population,' according to Capgemini. What Women Want. One thing to keep in mind is that before clients' children receive their inheritances, assets are often transferred to wives first as women tend to live longer than men. 'They also are likely to make a change in advisors if the current advisor has not been engaging and addressing her,' said Lisa Kirchenbauer, senior advisor at Omega Wealth Management. This post first appeared on The Daily Upside. To receive financial advisor news, market insights, and practice management essentials, subscribe to our free Advisor Upside newsletter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
02-06-2025
- Business
- Forbes
The Great Wealth Transfer: 6 Reasons Why It Might Fall Short
The Great Wealth Transfer numbers are staggering. Estimates suggest that over $124 trillion is poised to change hands as Baby Boomers transfer their wealth to the next generation. But will this so-called Great Wealth Transfer really deliver the promised windfall? Well into their 60s, Bill and Lori always believed that when the time came, they would leave an inheritance to their children. Nothing extravagant—just a modest suburban home and savings accumulated over a lifetime. For their children, Diane and Adam, it provided quiet reassurance, a mental safety net they never fully depended on but always considered part of their future. (Names and identifying details have been changed to protect the privacy of individuals.) But life has a way of rewriting plans and good intentions. Bill's arthritis and early dementia have resulted in new, unexpected costs. Lori, still energetic but facing her own health challenges, is paying for in-home aides and long-overdue roof repairs. She has also decided it's finally time for that trip to Italy they've been talking about for decades. Diane and Adam understand and are glad to see their parents making the most of their retirement—yet they realize that the inheritance they once quietly anticipated may not be as certain as they had hoped. Their story isn't unique. It's the untold side of the much-discussed Great Wealth Transfer, the historic shift of trillions of dollars primarily from aging Baby Boomers to Millennials and Gen Z. The numbers—like Diane and Adam's once-predictable inheritance—don't lie, but they obscure the very real ways in which longevity, rising healthcare costs, changing family dynamics, and shifting priorities may rewrite how, when, and how much this transfer will occur. This is an untold yet unfolding story within the longevity economy. It's easy to get swept up in the headline numbers: trillions of dollars poised to change hands, a once-in-a-generation economic boost. However, as one family's experience illustrates, the story of the Great Wealth Transfer is far more complex. It's a story of longer lives, unplanned events, evolving priorities, rising costs, and the reality that financial security for one generation doesn't necessarily translate to a great handoff to the next. To understand how the Great Wealth Transfer may unfold—and why it might not be quite as 'great' as the headlines promise—we need to look at six overlooked factors shaping this massive shift of wealth. Estimates from Cerulli Associates suggest that around $124 trillion will be transferred by 2048, with nearly $100 trillion originating from Baby Boomers and older generations. Yet, over 50% of that wealth will come from high-net-worth and ultra-high-net-worth households, which make up just 2% of all families. For most younger Americans, this expected transfer may never happen because it simply isn't there. Even among families who do stand to inherit, the rising cost of healthcare is quietly eroding those assets. Fidelity estimates a 65-year-old couple today will need about $330,000 for medical expenses in retirement—excluding long-term care costs. These expenses often arrive when people least expect them: a sudden hospitalization, a chronic illness that requires ongoing care, or simply the steady rise in insurance premiums as we age. This reality is especially pronounced for women, who often outlive their husbands by years or even decades. For many, this second retirement involves managing rising healthcare costs alone—sometimes for a decade or more after their spouse's passing. What was once a couple's shared plan for an inheritance or a family legacy can become a widow's quiet struggle to pay for her care and maintain her independence. These later-life expenses can turn what was once considered a predictable inheritance into a financial safety net redirected to the daily demands of living longer. Dementia poses a significant and often overlooked threat to the anticipated Great Wealth Transfer. A report by my MIT AgeLab colleague Luke Yoquinto and our AARP partners, Karen Kali and Julie Miller, indicates that financial missteps—such as missed bill payments, risky investments, and susceptibility to scams—can occur years before a formal dementia diagnosis, leading to substantial wealth loss and eroding savings that may have been intended for a planned inheritance. Moreover, the costs associated with long-term care for individuals with dementia can devastate a family's savings. This financial strain not only depletes the assets meant for inheritance but also places a heavy burden on family members, who often take on caregiving responsibilities, further impacting their own financial stability and retirement plans. Much of the wealth held by Baby Boomers is tied up in real estate. Most are suburban homes that may not align with the lifestyles or housing needs of younger generations. Baby Boomers are remaining in these homes longer and often neglect necessary upkeep. A Business Insider article noted that many of these homes are filled with stuff that will take time and money to sort out—resulting in a real estate legacy that can feel more like a liability than a gift. For children inheriting a house in an aging suburb, the financial and emotional costs can be significant—particularly in a dynamic mortgage interest rate environment. Decisions about whether to sell, rent, or renovate become complex, especially if the property requires maintenance or if multiple family heirs are involved. The traditional notion of passing on a legacy is evolving. For many Boomers, the dream isn't to leave it all behind for their kids, but to enjoy it while they can. A significant number are prioritizing travel, experiences, and home upgrades over saving every last dollar for inheritance. A Charles Schwab study reports that nearly all wealthy Americans intend to leave an inheritance. However, 21% of Baby Boomers prefer a strategy of giving while living, such as creating memories through family travel and assisting adult children with home buying. Perhaps most striking is that a full 45% of Baby Boomers agreed with the statement, 'I want to enjoy my money for myself while I am still alive.' Not all families stay close. Being in what has become popularly known as 'no contact' may be quietly on the rise. One in four (27%) Americans report being estranged from a parent, child, sibling, or grandparent. These deep rifts can completely disrupt inheritance plans. Estrangement also brings up uncomfortable questions: What happens to the family home if no one wants it—or if no one is willing to talk? How does the money pass when there's no relationship? These quiet divides can turn even the most generous inheritance plans into a source of confusion and potential conflict. Thanks to increasing longevity and advancements in healthcare, inheritances are often arriving later in life than many younger generations might expect. This delay means that younger Gen Xers and Millennials, who may have already navigated significant financial milestones—like buying a home or sending kids to college—without that anticipated boost, may find inheritances to be more symbolic than transformative. For women, this extended lifespan can complicate matters further. A decade or more of living in solo retirement often leads to a different relationship with adult children and a shifting perspective on what a financial legacy truly means. Plans made as a couple may change as one partner—typically the woman—navigates the final chapter alone, balancing her own needs with the opportunity to pass something on. The numbers around the Great Wealth Transfer are extraordinary, but they fuel a headline that overshadows the underlying story: this is not just a story of dollars, but of decades of longer life, evolving family ties, and the very human decisions about what it means to live well and leave well. In the end, the Great Wealth Transfer will not be measured by bank balances, but by how families navigate these hidden complexities—balancing care, connection, communication, purpose, and legacy in a world where living longer means living differently.
