Inheritance is one of those topics that rarely makes it into casual conversation-it's personal, sensitive, and often left unspoken. But whether we talk about it or not, the Great Wealth Transfer is already underway, and it’s too significant for anyone interested in investing to ignore. Over the next couple of decades, tens of trillions of dollars will move from older generations into younger hands, reshaping markets and rewriting the rules of investing. While recent market ups and downs might seem daunting, they also offer a rare chance to pick up quality investments at reasonable prices and set yourself up for the long haul.
Even if you’re not expecting an inheritance yourself, it’s still smart to pay attention. You don’t need to be on the receiving end to benefit from the trends this massive shift is setting in motion.
Part 1: Welcome to the Great Wealth Transfer
We’re living through a once-in-a-lifetime shift in global wealth. Over the coming two decades, tens of trillions of dollars will be passed down from the silent generation and baby boomers to Gen X, millennials, and Gen Z. This is the largest transfer of wealth in history, and it’s happening on a scale that could change how money is saved, invested, and spent.
Generational breakdown, by birth years
- In the U.S., around $84 trillion is expected to be passed down by 2045. For context, that’s nearly four times the value of all goods and services produced by the U.S. economy in a single year.
- Globally, estimates suggest $80–100 trillion will change hands in just the next 15 years.
- Japan, with one of the world’s oldest populations, will see about 550 trillion yen ($5 trillion) move from elders to younger generations in just five years.
- Australia expects about 3.5 trillion Australian dollars ($2.4 trillion) to be transferred over the next 20 years.
- In Europe, property-rich older generations in the UK, Germany, France, and Italy are also preparing to hand down their vast estates-these untold sums are expected to rise into the trillions as well.
Total accumulated assets by generation over time (US)
Source: US Federal Reserve
What makes this moment unique isn’t just the size of the numbers-it’s the circumstances that made it possible. Earlier generations often saw their savings wiped out by war, inflation, or economic shocks. But baby boomers came of age during a period of peace and prosperity, where homeownership was within reach and markets generally climbed. This allowed them to build up wealth at a pace unmatched by any previous group.
Total accumulated assets by generation in America, as of 2024
Source: US Federal Reserve
Today, they’re set to leave behind not just preserved wealth, but assets that have multiplied many times over. And because boomers had smaller families than their parents and grandparents, those inheritances will be divided among fewer people, meaning many folks will soon face big financial decisions.
When that happens, the next generation is likely to bring a new set of financial goals, risk appetites, and investment strategies to the table. As younger generations begin reallocating their inherited wealth, we could see sweeping changes in everything from portfolio composition to housing demand and spending patterns.
Part 2: Three Big Implications for Markets
The Great Wealth Transfer is already picking up speed, and it’s poised to really shake up the old-school 60/40 (stocks/bonds) portfolio. The new wave of investors isn’t content to stick with the time-tested mix of blue chips and bonds. Younger generations are cozying up to crypto, chasing big themes, and backing the creator economy. They’ve got a stronger risk appetite and tend to move a lot faster than previous generations, which could mean wilder sector-to-sector pivots and more market volatility.
As fortunes shift from boomers to their kids and grandkids, it’s not just ownership that’s changing-it’s the whole investing mindset. Here are three major shifts to watch:
1. The Traditional 60/40 Portfolio Could Be Upended
Boomers built their unprecedented wealth in an era that rewarded patience, dividend reinvestment, and blue-chip stability. Their portfolios were grounded in stocks, bonds, family real estate, and diversified mutual funds. Many also owned long-term stakes in private businesses-from local shops to professional firms.
But their children see things differently. Younger generations are more likely to build portfolios that reflect their personal values, social causes, and cultural convictions. Early signals include:
- Surging demand for thematic ETFs (think AI, clean energy, space exploration)
- Deeper participation in crypto and digital assets
- Growing investment in the creator economy, including personal brands and online businesses
If this trend continues, we could see a decisive shift away from traditional market strongholds like utilities and legacy banks, and into emerging industries like Web3, green tech, and biotech. Standard asset allocations may splinter, with more investors demanding customizable, conviction-driven portfolios-not the old 60/40 blueprint.
Potential impacts of the Great Wealth Transfer
On a big-picture level, this could mean a move away from low-yield assets like bonds and balanced funds, and toward higher-volatility investments. As investing becomes more fragmented and narrative-driven, some stalwart sectors could face steady outflows and valuation pressure, while newer industries enjoy surges of capital. This could even destabilize legacy market structures.
2. Risk Appetites May Rise
There’s a big psychological difference between wealth that’s been slowly built and money that’s inherited all at once. For many heirs, a sudden windfall feels like an opportunity to try new things, not just a nest egg to protect. That can lead to more risk-taking-bigger bets on crypto, startups, or alternative markets like collectibles and crowdfunding.
Signs of this are already showing up:
- Heavier allocations to crypto, startups, and speculative tech
- Rising interest in alternative markets like collectibles, carbon credits, and crowdfunding platforms
- Shorter holding periods, tied more to cultural trends than long-term fundamentals
If this behavior scales up, the entire character of markets could shift. Sentiment-driven capital would gain influence-not just from meme-stock traders, but through fast, viral, emotionally charged “TikTok-style” investing. Portfolio decisions might increasingly reflect social momentum rather than macroeconomic changes. Big institutional funds would no longer be the only heavyweight in the market, with behaviorally reactive flows potentially becoming a powerful force, driving faster sector rotations, more sudden rallies and corrections, and higher levels of volatility.
This new investing crowd might be more agile, but they’re also more unpredictable. Markets could swing harder in both directions, with bigger wins-and sharper losses-playing out more frequently.
3. Volatility Could Be the New Norm
If portfolios continue moving toward social-media-influenced investment decisions, and if shorter time horizons become the norm, volatility could rise across the board. We’ve already seen glimpses of this:
- The GameStop saga, where retail investors drove massive price swings
- The rapid rise and fall of NFTs
- Viral crypto rallies triggered by headlines or influencer tweets
As wealth flows into portfolios driven by cultural narratives, mission alignment, or influencer sentiment, the markets could see:
- Faster boom-and-bust cycles in sectors like AI, crypto, or biotech
- Bigger inflows and outflows based on hype, not fundamentals
- Traditional valuation models under strain, as pricing becomes more story-driven
Industries that capture the imagination of younger investors-like fintech, creator platforms, and Web3-could thrive, while traditional players may need to adapt or risk losing relevance.
Part 3: Where to Invest
You can get ahead of the Great Wealth Transfer by focusing on industries likely to benefit from generational change. A mix of ETFs and individual stocks can help you tap into big trends while spreading out your risk.
Here’s a breakdown of some promising areas:
Fintech and Investment Platforms
Younger investors want autonomy, low fees, and access to things like crypto. Companies like Robinhood and SoFi have built user-friendly platforms that appeal to this crowd. Coinbase is a major player in the crypto space, offering trusted services for both individual and institutional investors. Even some traditional firms like Charles Schwab are adapting well, with digital tools and low costs. Studies suggest that around 86% of heirs fire their parents’ financial advisors, so companies that empower self-directed investing could come out on top.
Crypto Infrastructure
As crypto becomes more mainstream, companies providing the backbone-like exchanges and custodians-could see big growth. Coinbase and Galaxy Digital are well-positioned here. If you want broader exposure, ETFs like Amplify Transformational Data Sharing ETF (BLOK, expense ratio: 0.76%), VanEck Digital Transformation ETF (DAPP, 0.51%), and Fidelity Crypto Industry and Digital Payments ETF (FDIG, 0.4%) offer diversified ways to invest in the sector.
Real Estate Tech and REITs
With so much property changing hands, platforms that make buying, selling, or managing real estate easier will be in demand. Zillow is a leader in online home listings, but don’t overlook high-end real estate investment trusts (REITs) like Equity Residential and AvalonBay Communities, which focus on premium properties. A smart mix of direct stock picks and diversified REITs can help you benefit from the real estate reshuffle.
Deathcare
It’s not the cheeriest topic, but as the population ages, demand for funeral services and estate planning will grow. Companies like Service Corp International and Carriage Services dominate this space and could be solid picks.
Listed Private Equity
Retail investors are looking for ways to access private markets. Firms like Blackstone and KKR are expanding products that let everyday investors get a taste of private equity. You can invest directly in these companies or use an ETF like the Invesco Global Listed Private Equity ETF (PSP, 1.79%).
Part 4: Evolve Your Strategy
In a market where trends can go viral overnight, momentum investing-riding the wave of what’s already working-can be a powerful approach. This means focusing less on long-term fundamentals and more on strong price trends, adapting as the market shifts.
Another approach is the barbell strategy. On one end, you put your high-growth, higher-risk bets (like fintechs and crypto). On the other, you balance with stable, long-term holdings like real estate, REITs, and established companies in steady industries. This way, you get the potential for big gains while cushioning your portfolio with more reliable investments.
Here’s what that might look like in practice:
- High-growth, high-risk: Fintechs, crypto infrastructure, thematic tech plays
- Stable, long-term: Real estate, infrastructure-backed REITs, established deathcare leaders
Including these asset classes within your mix lets you capture the upside of trend-driven momentum, while also having the cushion of more predictable plays.
Remember, the Great Wealth Transfer isn’t just about who inherits the money-it’s about how that money shapes the future. You don’t need to be an heir to benefit; you just need to spot where the money’s headed and get there first.
Part 5: Consider What Could Go Wrong
While the Great Wealth Transfer seems inevitable, there are risks that could slow it down or change its impact:
- A major market downturn, recession, or real estate crash could shrink inheritances before they’re passed on.
- Changes in government policy-like new inheritance taxes or tweaks to estate laws-could take a bite out of what’s transferred.
- Advances in healthcare could mean boomers live longer, delaying inheritances.
If these risks play out, the expected surge in capital for areas like crypto and fintech might be delayed. That’s why it’s wise to keep your portfolio balanced: mix growth-focused investments with more stable, income-generating assets like REITs. If the transfer happens slowly or unevenly, resilience will be just as important as chasing the hottest trends.
By keeping an eye on these shifts and staying flexible, you can make the most of the opportunities the Great Wealth Transfer is creating-no matter where you start.
