Rich millennials will become richer in the decades to come because of the inheritance they will receive from baby boomers, the richest generation ever.
A new report by Coldwell Banker shows that roughly two percent (618,000) of millionaires in the US are millennials. The report worked with wealth intelligence data and WealthEngine, a research firm, to analyze the lifestyles of the wealthy millennials including property investments, spending trends and wealth creation.
The millionaire millennials in the report are defined to be between ages 23 to 37 with more than $1 million as their net worth, Business Insider reports.
Again what is making millennials be so different from their counterparts of the 1980s is that they will inherit more money from their baby boomer parents, which are considered to be the richest generation ever.
Dubbed “The Great Wealth Transfer,” it is estimated that $68 trillion in inheritance will be passed down from baby boomers to millennials, and that exactly 11 years from now, rich millennials will be five times richer than they are today, according to Business Insider.
But there is good news for broke millennials. The report also predicts that millennials who are not rich today, will have more money in the future.
It is very likely that millennials will become the richest generation ever due to it being a smaller generation than baby boomers. So all that wealth that many baby boomers have will be concentrated during “The Great Wealth Transfer,” said Paul Donovan, a chief global economist of UBS Wealth Management, to Business Insider.
The inheritance of baby boomer’s wealth will be known as the greatest wealth transfer in modern history, according to Jason Dorsey, president of The Center For Generational Kinetics.
Dorsey added that since baby boomers are healthier and expected to live longer than planned, “The Great Wealth Transfer” will not completely happen 20 years or more from now.