Navigating the Great Wealth Transfer: Insights from Equitable
Understanding the Great Wealth Transfer
The United States is currently witnessing a substantial transformation in its wealth distribution demographic, referred to as the Great Wealth Transfer. This phenomenon involves nearly 11,000 baby boomers reaching the age of 65 daily, contributing to a shift in the control of assets expected to exceed $30 trillion by the end of the decade.
Equitable's Recent Study
Equitable conducted a study targeting financial professionals to enhance their understanding of the anticipated wealth transfer. The study surveyed 500 retail investors, primarily those making household financial decisions aged 35 to 64. These investors typically possess high incomes and are poised to receive significant inheritances—often exceeding $100,000.
Impacts on Wealth Distribution
Notably, millennials are anticipated to be major beneficiaries of this wealth shift. Among those surveyed, 57% of millennials expect to inherit at least $1 million. Interestingly, surviving spouses—largely women nearing retirement—are expected to control a significant portion of the resulting assets over the next ten years.
Building Trust with Financial Professionals
According to Nick Lane, President of Equitable, the key takeaway from the research is the critical nature of trust in selecting a financial advisor. As wealth transitions between generations, individuals will seek support from financial professionals they can trust to navigate these changes effectively.
Strategies for Financial Professionals
The study outlined vital approaches for financial professionals looking to establish and strengthen relationships with potential heirs and beneficiaries. Here are some focal points:
- Understanding Women's Needs: Many women will inherit wealth after the passing of a spouse. This demographic places a high value on retirement planning, with 90% seeking financial professionals who acknowledge their broader life aspirations.
- Engaging with Millennials: As millennials are beginning to inherit wealth while still advancing in their careers, they seek guidance. The survey revealed that 90% of millennials appreciate and trust insights from financial professionals.
- Becoming the Preferred Advisor: A staggering 80% of respondents are inclined to work with a financial professional for managing their newfound wealth. However, only one-third currently have a preferred advisor in mind for when this wealth is received.
- Fostering Trust: Trust emerged as the principal concern for respondents when choosing a financial advisor, with 55% emphasizing its importance above all else.
- Highlighting Guaranteed Income Options: Financial professionals are encouraged to educate clients about various financial strategies, particularly regarding annuities. The research revealed that 70% of women and 80% of millennials are receptive to investing in annuities when recommended.
Adopting a Holistic Approach
Lane stresses the value that adept financial professionals deliver, which extends far beyond numerical figures. Focusing on a client's family dynamics, aspirations, and legacy can lead to better holistic financial guidance and planning.
Equitable's Initiative
Equitable has recently launched the Let’s Plan How platform, aimed at enhancing financial advisory practices and client satisfaction. Recognizing the rising popularity of "How to..." search terms, this program intends to bolster Equitable's presence in the financial landscape.
Understanding the Study and Equitable
This study articulates the perspectives of 500 retail investors with household incomes exceeding $100,000. With an equal representation of genders and age ranges from millennials to pre-retirees, the insights aim to navigate the complexities of wealth transfer.
About Equitable
Equitable, a prominent name in the financial services industry since 1859, provides tailored advice and strategies to individuals, families, and enterprises. With a workforce of over 8,000, the organization remains dedicated to supporting more than 3 million clients nationwide.
Frequently Asked Questions
What is the Great Wealth Transfer?
The Great Wealth Transfer refers to the ongoing shift of wealth in the United States, where baby boomers are bequeathing assets expected to total over $30 trillion by the year 2030.
Why is trust important in choosing a financial advisor?
According to a recent study by Equitable, trust is the most critical factor for individuals when selecting a financial advisor, as it is essential for effective wealth management and support.
What percentage of millennials expect to inherit wealth?
The study indicates that 57% of millennials surveyed expect to inherit at least $1 million, highlighting their significant role in the Great Wealth Transfer.
How can financial professionals engage with inheritors?
Financial professionals can foster relationships with future inheritors by understanding their needs, particularly by focusing on women and millennials, and providing relevant education on wealth management.
What services does Equitable provide?
Equitable offers a range of services including financial advice, retirement planning, and insurance products, all aimed at enhancing clients' financial well-being.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.
Related Articles
- Phanes Therapeutics Commences Clinical Trial of PT886
- Nio Inc. Stock Reaction: Understanding the Current Market Trends
- The Future of Exoskeletons: Innovations and Market Trends
- Exploring the Rise of Automotive Glow Plugs: A Market Overview
- Jesús Carmona Strengthens U.S.-Mexico Relations Through Energy
- Analysts Share Insights on Booking Holdings' Investment Potential
- Key Earnings Reports: Insights on AZZ and Market Trends
- PTC Therapeutics Steady on Positive Study Results for Vatiquinone
- Cellipont Bioservices & Mongoose Bio Join Forces for Cancer Therapy
- Insights on Recent Options Activity in Cameco (CCJ) Stock
Recent Articles
- Growing Demand for Alkyl Polyglucosides in Eco-Friendly Products
- Equity Trends Amid Election Night: Insights from Investment Advisors
- Exploring the Growth and Innovations in Online Trading Platforms
- Radial Equity Partners Forms Strategic Alliance with Plasticade
- Future Growth Projections for the Epoxy Adhesives Market
- Revolutionizing Banking: The Rise of Neobanks in Finance
- OFA Challenges FDA's Decision on Tirzepatide Medication
- Analyzing Law Firm Rate Trends: Insights for 2024 and Beyond
- Consumer Drones: A Thriving Market Driven by Innovation
- Future Trends in the Semiconductor Tubing Market and Growth Insights
- Simplifying Payment Orchestration for Modern Retail Challenges
- Exploring the Future of Healthcare: The Rise of Nanorobots
- REMspace Revolutionizes Dream Communication with New Breakthrough
- Craft Secures Spot in Prestigious Top 50 Providers to Watch
- Innovative Identity Solutions Spotlighted at Authenticate 2024
- Bocada Expands Its Offerings by Acquiring JobR from Biomni
- Revolutionizing IT Asset Management with Remota's Launch
- DSV A/S Unveils Key Dates for 2025 Financial Calendar
- THG Ingenuity Grows U.S. Presence to Boost Fulfillment Services
- Willdan Group, Inc. Announces Upcoming Earnings Release Date
- Vroozi Named Among Top Procurement Providers for 2024
- Enhancing Customer Support with Voice Connect from SupportLogic
- SupportLogic Unveils Account Health Insights for B2B Growth
- MetLife Celebrated for Commitment to Diversity and Inclusion
- Shaping the Future: Aircraft Cabin Interiors Market Growth
- Unlocking Block, Inc.: A Deep Dive into Bitcoin Holdings and Growth
- Empowering EdTech Leaders Across Central Europe and Asia
- Nepsis, Inc. Welcomes Derek Malmquist as VP of Marketing
- Anti-Infective Drugs Market: Growth Perspective and Insights
- OtterBox Unveils Exclusive Cases with Gabrielle Neil's Artistry
- Top Analysts Issue Bullish Updates: Abbott and Others Shine
- Transformative Wealth Management Solutions by Communify Fincentric
- Josh Montgomery Joins ITC Federal as Chief Financial Officer
- Facet Raises $35 Million to Enhance Financial Services Access
- Smart Agriculture Industry Growth and Future Trends Explored
- PlantX Life Inc. Elevates BloomBox Club with New Offerings
- Exciting Opening of a Revamped Dave & Buster's Location
- CoinW Takes Center Stage as Platinum Sponsor at Dubai Event
- Chinese Market Turmoil: Investors React to Stimulus Slump
- Eigen's EIGEN Token Set to Make Waves on CoinW Trading Platform
- Selfii Partners with MedAllies to Enhance Health Data Access
- ISG Researching Future of Mainframe Solutions and Services
- Taoshi Unveils Innovative Decentralized Trading Challenge
- Edible Brands Appoints Somia Farid Silber as New CEO
- Exploring SoundThinking's Impact on Public Safety in Oakland
- Supermicro Reveals Advanced Server Design for Edge AI Solutions
- Mines and Carbon TerraVault Secure Funding for Carbon Project
- Kidde Launches Cause For Alarm Campaign to Ensure Fire Safety
- US Trade Deficit Declines Significantly, Boosting Growth Prospects
- Broadcom Showcases Future of AI Infrastructure at OCP Summit