George Kamel - The Biggest Wealth Transfer In History Is About To Happen

Starting point is 00:00:05 Are you a broke millennial? Not if the boomers can help it. Here's the headline. Millennials are set to become the richest generation in history. Is it because they chose experiences over possessions or they finally DIYed themselves into prosperity? No. Bummer. It's thanks to their boomer parents who are scheduled to pass on over $84 trillion when it's their time to kicketh the bucket, respectfully. Today, we'll talk about what every generation needs to know about the great wealth transfer.

Starting point is 00:00:32 and stick around to find out what to do with inherited money, plus how to set up your family for their own wealth transfer. But before we dive in, make sure to smash that like and subscribe button. And boomers, quick tutorial for you. That means click the buttons that look like this one. One time, you do it twice, you undo what you did. What is this green thing next to my notifications? Dad, that's the long intro.

Starting point is 00:00:56 First off, let's talk about how millennials love to throw shade on the boomers for being well off financially. I mean, the only thing millennials roast more than boomers is their single origin coffee beans with their beratsa grinder if you know you know conical burr we love to complain about how hard we have it compared to our parents generation i mean come on our degrees are less useful than we thought the cost of living has gone up considerably and houses were way cheaper back in the day and by cheaper i mean that the median home price in the 80s was in the 80 thousands that's insane and while boomers did in fact have the benefit of buying

Starting point is 00:01:28 homes that have gone up 500% in value that's not the only thing that's been in their favor that led them to accumulate all this wealth. In fact, from the time most boomers would have started investing 40 years ago, the S&P 500, which represents the overall U.S. stock market, has done this little number. That is a recipe for wealth. So I have to admit, boomers had a lot working in their favor. But that's also what's about to work in favor of millennials and make them super rich. And by super rich, I mean that millennials could have the power to reshape markets and industries with how they spend and invest their inheritance. But to be fair, it's not just millennials who are going to benefit from this great wealth transfer.

Starting point is 00:02:02 each generation will see its own cut of that 84 trill. Gen X is expected to inherit close to a trillion dollars annually up until the mid-2040s, peaking at 1.5 trillion in the mid-40s. So at least all the Jason's, Stephanie's, and Ken's out there are getting a small piece of the pie, albeit smaller. Pie! Pie! All right!

Starting point is 00:02:24 The fat people have spoken! On the flip side, millennials are expected to receive a collective $2.5 trillion annually by the year 2045. year of our lord. And Gen Z, cool your crocs. You're going to get some too. You guys can expect to inherit a collective $1 trillion annually when we hit 2045 if the Earth's mantle hasn't melted us all into human fondue by then. So in due time, we'll all see some of those boomer bucks. And this is all assuming your parents did a decent job financially. Which begs the question, what should you do with that inherited money should you get it? Well, you need to have a plan in place before the money

Starting point is 00:02:57 arrives and make decisions slowly if you're still grieving. It's okay to park that money in a high-yield savings account while you wait. And if you need a good one, I'll tell you in a second. It's Laurel Road. When you're ready to make decisions, start by remembering where this money came from. You want to honor the person that gave this to you. This is not the time to go buy a cyber truck in honor of great Aunt Shirley. She's more of a Buickla Sabre kind of gal. Remember, there's only three things you can even do with money. Give it, save it, and spend it. And I recommend doing all three in that order if you want to live a better life. So you can give some to your church or nonprofits

Starting point is 00:03:29 that you're passionate about. And what you do with the rest should reflect where you are in your financial journey. If you're still in debt, use this as your chance to get that junk out of your life. And if you're out of debt, you've got a lot of options. And I recommend making sure you have a fully funded emergency fund of three to six months of expenses,

Starting point is 00:03:44 then maxing out an IRA, saving for your kids' college in a 529 plan or ESA, and then throw as much as you can at that mortgage to get that sucker paid off in that order. Regardless, this, anytime you come into a large sum of money, it is wise to assemble a dream team of financial Avengers, including an investment pro, an insurance broker, and a tax pro. And if you want to get connected with folks I trust in these areas, I'll drop a link in the show notes to help you out.

Starting point is 00:04:08 And while you're making a plan for your money, go ahead and decide what kind of legacy you want to leave. Whether you're in the golden years of retirement, or you're just a 38-year-old and in denial that you've statistically reached midlife. You've got to have a will, you got to plan out your state, it's one of the kindest things you can do for your loved ones. But still, a lot of people don't do it. Research shows that about 40% of people don't have a specific plan to accomplish that. What's more, a third of people whose parents have passed said they didn't do a good job of discussing how their money would be handled, with over half saying the lack of planning caused financial problems for them down the road. And not to sound like a middle school motivational

Starting point is 00:04:43 poster, but if you fail to plan, you plan to fail. And if I really wanted to sound like a middle school motivational poster, I would just say, got milk. And also, moms against drugs. Mad. They're mad. Moms against drunk driving. Mads. Don't do it. Speaking of planning to fail, if you fail to plan to keep your data safe, you could end up getting scammed. And there's tons of dirty, no-good data broker sites out there looking to cash in on your personal information. And that's why I love Delete Me, a sponsor of today's show. They work to scrub your personal data from these shady sites so you can stay under the radar and keep your private life, well, private. Think of it like hitting the old delete button on the creepers trying to snoop through your

Starting point is 00:05:24 most personal info. So let Delete Me do the heavy lifting while you focus on the stuff that really matters. Go to join Deleteme.com slash George to get 20% off any of their plans or just click the link in the description. Another sponsor of today's video is Laurel Road. Now boomers know that some things just used to be better, like fresh milk delivered right to your door or playing jacks down at the soda fountain. But one thing you won't be nostalgic for is low interest That's because Laurel Road has a high-yield savings account that's offering 4.8% APY. And I think your money should work as hard as your old man did, going uphill both ways and a Nor-Easter.

Starting point is 00:05:56 So if you want to make the switch today, they make it really easy with no fees and FDIC insured deposits. Just go to Laurel Road.com slash George or click the link in the description below. Okay, back to leaving a legacy for your loved ones. How do you do it? Well, first, you've got to start the conversation about legacy as soon as possible. And not to get too dark here, but we check the stats and we're all going to be. to die and no one knows when. So don't put off having the big talk with your parents and or your kids.

Starting point is 00:06:21 Not that talk, although both would be good honestly. Kill two birds with one bee. Can you tell me about the birds and the bees? And make it clear that money is a tool that can help your family make generational impact. It's not some windfall of lottery money meant for hedonistic whims like a ninja warrior course for the backyard. Although I do kind of want that for my kid. I wouldn't use it. I might, I might use it. We know. And discuss your estate plan with or trust and your goals for giving. Make sure everyone understands the reason behind each of those things and how they reflect your family's values. And it's probably a good idea to loop in a financial

Starting point is 00:06:55 advisor who can not only help with legacy planning, but can also help everyone get on the right track financially so that they're prepared for the wealth transfer. If you're on the receiving end of inheritance and your parent hasn't had this conversation with you, it's okay to approach the topic with them. Maybe don't start with, hey pop, so when you die, don't do that. But you should bring up how you want to see their hard work and legacy honored and ask if there's a plan that you should know about. And I understand fully that legacy goes way beyond money. And I love the way Patrick Bet David put it on his Instagram. He says, it's easy to transfer generational wealth. What's tough to transfer is generational ambition, generational drive, generational values and

Starting point is 00:07:30 principles, generational work ethic, generational gratitude, generational faith, and generational commitment to family. My father didn't leave me a penny, but he left me a ton of generational values worth way more than all the money in the world. Money alone can ruin your children's future. Beautifully said, PBD, I couldn't agree more. Receiving an inheritance should not feel like you won the lottery when you understand what it took to build this wealth and the heavy responsibility of managing it wisely. And listen, if you haven't started planning or you're frustrated because you don't have anything to leave your family, it's not too late to change that.

Starting point is 00:08:02 Not too late to get out of debt and build wealth and leave a legacy. Trust me, there's still a lot you can do about it. Just watch this next video and I'll walk you through all the investment mistakes to avoid so you don't croak broke. Thanks for watching. We'll see you next time.

George Kamel - The Biggest Wealth Transfer In History Is About To Happen

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