Josh Brown: "CEO, Ritholtz Wealth Management" | Talks at Google



Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance

Wealthy young peopleIt may not be the result of a silver-spoon upbringing.

The rich are getting richer — and their kids are hoping to do so as well.

One-third of "mass affluent" Americans say their financial stability depends on receiving an inheritance, according to a new report from Merrill Edge. Specifically, 32% of millennials, 63% of those in Generation Z, and 37% of Gen Xers are anticipating a windfall, mainly from their parents or grandparents.

Their expectations aren't necessarily the result of a silver-spoon upbringing.

Business Insider's Hillary Hoffower reported that millennials born in the 1980s are at risk of becoming a "lost generation" that accumulates less wealth during their lives, thanks to coming of age during a period of market fluctuations, high unemployment, and weak wage gains.

Citing a report by the Federal Reserve Bank of St. Louis, Hoffower wrote that older millennials had wealth levels 34% below where they would most likely have been if the financial crisis hadn't occurred.

The Minneapolis Fed also found last year that the "share of children whose income exceeds that of their parents fell by about 3 percentage points" in the period starting in 1980 — an alarming signal of a decline in US social mobility, or the ability to rise to a higher level of income, according to Business Insider's Pedro Nicolaci da Costa.

Evidently, younger generations are relying on money from their parents to make up for that lack of wealth.

Within in the next few years, baby boomers are set to pass on trillions of dollars of wealth to their kids. Despite 87% of Gen Zers in the Merrill Edge survey claiming to have a "do-it-myself" approach to money decisions, they're more than twice as likely as other generations to count on grandparents, extended family, and even friends for financial help.

"We've never seen such a strong reliance on receiving an inheritance," Aron Levine, the head of Merrill Edge, said in the report. "With shifting priorities and growing lifespans, Americans are finding new ways to ensure their financial stability and as such are increasingly looking to others."

Merrill Edge and Convergys surveyed 1,000 mass-affluent Americans across the country for the report. Mass affluent, in this case, was defined as 18- to 40-year-olds (Gen Zers and millennials) with investable assets (excluding real estate) between ,000 and 0,000, or 18- to 40-year-olds with investable assets between ,000 and ,000 with an annual income of at least ,000, or those 41 years old and up (Gen Xers and baby boomers) with investable assets between ,000 and 0,000.






Video: Aron Levine discusses the 2018 Spring Merrill Edge Report

Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance
Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance images

2019 year
2019 year - Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance pictures

Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance forecast
Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance recommend photo

Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance pictures
Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance foto

Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance new picture
Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance new pictures

pics Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance
images Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance

Watch Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance video
Watch Merrill Lynch: Affluent millennials, Gen Z are relying on inheritance video

Discussion on this topic: Merrill Lynch: Affluent millennials, Gen Z are , merrill-lynch-affluent-millennials-gen-z-are/
Discussion on this topic: Merrill Lynch: Affluent millennials, Gen Z are , merrill-lynch-affluent-millennials-gen-z-are/ , merrill-lynch-affluent-millennials-gen-z-are/

Related News


3 Ways to Treat a Girl
How to Get Rid of Rabbits
11 Fitspo Stars Who Will Motivate You to Hit theGym
Packer is a philanthropist
Tarragon Chicken
Now Playing: The only piece of advice Anil Kapoor ever gave Harsh
How to Get Into a Fighting Stance
Ribavirin Reviews
Apple Hints At The Future With Their Stunning New MacBook
Whats New in Menopause Research



Date: 12.12.2018, 13:16 / Views: 45591