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Great Wealth Transfer may widen gaps as stock wealth is uneven
A Moneywise analysis cites findings that those under 43 hold just 25% of their wealth in stocks, while many recipients already have higher net worth.
A Yahoo Finance feature on the so-called Great Wealth Transfer says trillions are set to move from baby boomers to Gen Xers and millennials over the next two decades, but the benefits may be uneven across income and age groups. The story points to a key divide in stock ownership. It says millionaires under 43 hold only 25% of their wealth in stocks, and cites a Visa report finding that nearly 75% of people already set to benefit from the transfer have higher net worth. The article also argues that some older adults may face constraints that reduce what they can pass on, noting that baby boomers who still carry mortgage, consumer, and loan debt have far less financial flexibility and potentially less wealth available for heirs. For perspective on how concentrated wealth is, the feature cites a 2024 Congressional Budget Office study that found family wealth became more unequal from 1989 to 2022, with families in the top 10% holding 60% of all wealth while those below held 39%. It adds that Federal Reserve data referenced by the American Society on Aging shows white households control more than 80% of wealth, while Black households hold 3.3%, and says the generational transfer could replicate existing hierarchies rather than reduce the racial wealth divide.