Updated
Updated · Wealth Professional · Jun 18
Wealthy Americans Shift for $124 Trillion Transfer as 77% of Ultra-Rich Favor Private Markets
Updated
Updated · Wealth Professional · Jun 18

Wealthy Americans Shift for $124 Trillion Transfer as 77% of Ultra-Rich Favor Private Markets

1 articles · Updated · Wealth Professional · Jun 18

Summary

  • $124 trillion in expected intergenerational transfers is pushing wealthy Americans to rethink wealth plans, with more than 90% saying longevity now shapes financial decisions, Bank of America Private Bank found.
  • 77% of investors with at least $25 million said private markets can outperform public ones, while Gen Z and millennials are moving further from traditional portfolios with 15% in alternatives and 13% in cryptocurrency on average.
  • 23% of wealthy business owners said they inherited their company, up from 5% in 2022, as family firms change hands more often and rely less on personal or family funding.
  • 20% of wealthy business owners have a fully documented succession plan even though 78% call it important, underscoring a planning gap as more firms pass within families.
  • 52% of the ultra-wealthy use credit strategically, and nearly one in four people with $10 million or more have borrowed specifically to support generational wealth transfers.

Insights

Why do 90% of wealthy families lose their fortune by the third generation, and can this historic cycle be broken?
As heirs armed with crypto and ESG values inherit trillions, what family conflicts are erupting behind closed doors?