Pattie Lovett-Reid: Number of millennial millionaires could surge in coming years
There is nothing “average” about a millionaire millennial.
But a new report from Coldwell Banker shows they do exist, and reveals that the average millionaire millennial in the U.S. typically owns three properties and has a net worth between $1 million and $2.5 million.
And while there are clearly a number of millennials who don’t have that much wealth, they stand a good chance of becoming millionaires. The boomers, the largest living adult generation, are expected to transfer more than $68 trillion in wealth by 2030, according to the report.
Given the transfer of wealth will be massive – and estate planning is such a crucial component of financial planning – it’s an important conversation to have. You can’t rule from the grave and you can’t take your money with you. So if your financial legacy is important to you, it’s up to you to ensure the conversation with your heirs happens sooner rather than later.
Here are a few considerations.
- Don’t rush the conversation. Gently lean into it. Understand your heirs’ values on money may or may not align with yours. If helpful, recommend them to your advisor for a conversation recognizing it isn’t a guarantee this is who they will choose to work with in the future.
- Take the time to explain what it took to acquire the wealth you have. This includes the lifestyle you have established and the choices you’ve made throughout your life.
- Share your financial life. Include your heirs so they understand how they fit into your legacy. Don’t just think about the next generation but generations to come.
So often there is radio silence when either death or money is brought up. I get it – it’s uncomfortable because no one wants to think about their demise and privacy is often front and centre. However, it does help to have transparency when having sensitive discussions. It isn’t fair to only share selectively, and not provide the whole financial picture.
One last thought. Don’t make assumptions, because if you assume incorrectly, you might not be around to make things right. For example, not everyone feels comfortable managing money, can afford the family cottage, or act as a guardian for your children, etc.
When open and honest communication is lacking, mistakes will happen and your estate may or may not distributed according to your plans.