The Great Wealth Transfer

Posted By: Chris Tanner ICOR Blog & News,

It’s estimated that $72.6 Trillion dollars of wealth will be passed on to heirs and charitable organizations over the next 25 years.* The silent generation and the baby boomer generation have amassed significant wealth during their lifetimes, and that wealth is about to be passed on to children, grandchildren, and charitable organizations. What does this mean?

A major shift is underway regarding the way wealth management is delivered. Americans born before 1964 are far more likely to collaborate with a trusted financial advisor than their children or grandchildren. In fact, it’s estimated that 80% of heirs will fire their parent’s financial advisor.** Generation X and Millennials are looking for a stronger level of customer service, a higher-level digital experience, and lower fees. In addition, those born after 1964 are more likely to invest in alternative assets like real estate, cryptocurrency, and private equity. All of which are investments most financial advisors do not work with.

Who will benefit from the great wealth transfer?

  • Charitable Organizations: It’s estimated that 14% of the potential 72.6 trillion dollars being transferred will go to charitable organizations. The ultra-wealthy would rather donate to charities of their choosing, than force their heirs pay estate tax on their inheritance. Organizations that can educate and inform potentials donors are likely to benefit.
  • Robo-Advisors: Robo-Advisors provide more accessible investing and money management options at a fraction of the cost compared to traditional models. 1 in 5 Americans now use robo-advisors. The highest adoption rates are among Millennials at 21%, and Generation X at 18%, while only 7% of Baby Boomers use robo-advisors.
  • Some Investments Firms: Organizations that can offer alternative investments like cryptocurrency, real estate, and private equity will attract younger investors. A recent study by Rocket Dollar indicated that 69% of Millennials are interested in investing in alternative assets with their retirement accounts. *** Firms that can offer both traditional and alternative assets are likely to prosper as the wealth transfer unfolds.

If you would like to learn more about investing in alternative assets using your retirement funds, please reach out to New Direction Trust at (877) 742-1270 or visit our website at

Written by: Chris Tanner