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Baby boomers and millennials face ‘daunting’ task as stocks trade near record highs: Morning Brief
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I reached an important conclusion in France Cannes Lions Festival this week while watching Nvidia (NVDA),Microsoft (MSFT) and apple (AAPL) fight for the most valuable company in our stellar app.
Similar to most millennials, I have no idea how wealthy my baby boomer parents were. Like, zero idea. None. Zero. Anything.
Now I suspect neither owns the soaring shares of Apple or Nvidia (I don’t think stocks were ever their thing), but I imagine other baby boomer parents do, and may well maintain their positions. until they die.
What should millennials do with these lucrative positions? How do they get into their parents’ trading and investment accounts? Did our parents think about all these things? What exactly do I need to know about your wealth today?
The generational transfer of wealth from boomers to their millennial descendants is beginning — so get ready now, reminded Carla Hassan, chief marketing officer at JPMorgan Rachelle Akuffo and I in Cannes Lions.
“It’s completely uncomfortable. It’s also intimidating,” Hassan said of the money conversations between boomers and millennials.
To start, JPMorgan offers a good model for how to think about planning generational wealth transfers here.
The impact of generational wealth transfer on markets and the economy in the coming decades should not be underestimated.
Cerulli Associates estimates that wealth transferred by 2045 will total a staggering $84.4 billion. Broken down, this consists of $72.6 trillion that will be transferred to heirs, while $11.9 trillion will be donated to charities.
More than $53 billion will be passed on to baby boomer families, representing 63% of all transfers.
“Family money conversations can be emotional and tense (as seems to be the buzzword of the day), but they don’t have to be, especially if everyone is on the same playing field,” said Yahoo’s personal finance and retirement expert Finance. Kerry Hannon told me.
“You could even start by talking about special objects that your parents have that are meaningful to you, say, a grandfather clock that has been passed down from generation to generation, or a certain painting that you know they bought in Paris on a trip when they were newborns. married.”
Take me.
In my brain, I’ve outlined the case that my parents will be around forever and there’s no need for The Talk. I also remember being yelled at by my dad when I asked for pocket money – so somewhere in my head that’s an emotional blocker.
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I also have no idea where to find something important to them if something happens. I don’t even know where my dad lives in Florida – I haven’t seen him since he moved there over five years ago! My mother lives five miles from me, but I still have to knock on her door to get into the house – without a key!
Kerry’s advice is something to keep in mind as I work through that initial conversation with Mom and Dad.
But as they say, it’s a two-way street!
“More and more clients are choosing to make wealth transfers to their children while they are alive, rather than waiting until they die, because they can enjoy seeing the impact of their gifts when their children need them most,” he said. Hemington Wealth Management founder and CEO Eileen O’Connor.
Clock is ticking.
Brian Sozzi is the executive editor of Yahoo Finance. He is also the host of “Opening bid“podcast. Follow Sozzi on Twitter/X @BrianSozzi and so on LinkedIn. Tips on business, mergers, activist situations or anything else? Email brian.sozzi@yahoofinance.com. Are you a CEO and want to participate in Yahoo Finance Live? Email Brian Sozzi.
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