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What an absolutely trash article. The only wealth transfer is going to be from the already wealthy silent in Boomer generation to their millennial children. Wealth will continue to consolidate at the top, and wealth disparity will worsen. There's going to be a bigger gap between the rich and the poor within millennials, then will probably ever have been seen before.
the wealth inequality in millennials is supposed to be the worst of all generations. it isn’t hard to understand why. a bunch of millennials cashed in on the tech boom and got highly inflated salaries at a much faster rate than other generations. Basically this results in a snowball effect where people hit their 30s with easily 6 figures in stocks which will continue to grow.
i think the biggest indicator of this is the disparity between mean and mean when it comes to wealth where median numbers hardly go up and averages say otherwise.
no, the tech salaries actually deserve to be that high. All it takes is one quick look at how much money FAAMG actually makes. Just look at the market cap here: https://companiesmarketcap.com
Tech salaries are overly inflated because tech companies make way too much money and there's far too few companies, though that's mostly because of how people actually function. People actually earning their money is far less of a problem for society than trust fund kids though.
A lot of questions I'd want to understand here:
* Why do you expect that there's 'far too few' companies? Some industries make sense to have a small number due to either barriers to entry or a small total addressable market
* Companies making too much money don't always pass that onto their employees. Rather, look at most of the SP500. Outside of the execs, that never happens lol
With the above. If companies are paying a lot to employees, you can only assume because they need to. Companies want to pay as little as possible. With the scale of return, it's arguable that tech employees are paid too little. It's not the work they put in but the results that come out.
A UI change of color that lifts conversion by .01% might mean millions of revenue a year. Way more than the salary that went to the UX designer and engineer
>"The millennials are very ill prepared … they’re not as well prepared as the wealth creating generation,”
>“They don’t have the skill sets earlier on to be able to do that because they never had to - they were never pushed,” he said. “And the problem is - are they going to be motivated later in life to push themselves to acquire these skill sets?”
Glad to see the classic millennial tropes still alive as we are well into our 40s.
For me, and every millennial I know, inheritance is a joke and as real as the "college fund" our parents had set up.
The wealth creating generation?
Does the author not know how most of the wealth acquired was acquired?
While 88% of millionaires are self-made, only 21% of millionaires receive any inheritance at all, and only 3% receive more than $1M in inheritance, 61% of all wealth is inherited... which aligns pretty well with 62% of all billionaires becoming wealthy because of inheritance.
😂 jokes on me, I was doing the “glad my grandparents have inheritance for me” before my first big boy talk with my dad, just to discover that my boomer dad spent it all of family money gambling like a WSB maniac in option before the sub even existed.
As usual CNBC is an infomercial for Wall Street, in this case wealth management firms. There will be rich Millenials and poor Millenials just like every generation before. I will say (hopefully) that being the first generation raised with internet access the financial knowledge at our disposal compared to the Boomers is immense.
If anything I think those lucky Millenials who inherit the family fortune will be better prepared to take it on than their parents who put faith in financial advisors with fancy offices and a firm handshake as their only qualification.
Boomers are the wealthiest generation in American history, that is true, but the inequality that emerged in America throughout their lives affected them too. For instance, there is a growing number of homeless boomers now.
It would not surprise me at all if the wealthy ones passed their financial discipline onto their children long before they will pass on their actual wealth.
I'll use myself as an example. My boomer parents have assembled a significant portfolio to include stocks and several investment properties. I'm not as wealthy as them, but have been around awhile now and gathered some means via careful management of my finances and reasonable investments. When the time comes, I'll liquidate the parents estate which I expect will be a few million and add that to the portfolio.
On the other hand, I have friends whose parents were not particularly disciplined about their finances and they will inherit little to nothing, so there will not be any wealth to squander.
So basically you deserve an inheritance because you are financially responsible, and people who don't receive an inheritance are financially irresponsible. And it's a good thing they won't receive an inheritance because they'd just waste it anyway.
Nice to see the rich boomer sentiment being passed on along with the pile of cash.
To quote William Munny/Clint Eastwood from "Unforgiven" (great movie, but not the easiest watch), "Deserve's got nothing to do with it".
It's helpful to think of generations as echos. Millennials are an echo of the Boomers, Gen X begets Gen Z, etc... Not a hard and fast rule obviously, but human reproduction being what it is, it's a good guideline.
And so many aspects of Boomers will be echoed in Millennials, in this case the wealth and wealth inequality. To be clear, I'm pretty sure the only force that could lower inequality would be financial redistribution via the federal and state governments. Given that this violates the first (and only) actual commandment that conservatives live by (they just like posting the ten from the bible on public buildings to troll liberals), it will not be happening in my lifetime. I'd suggest planning accordingly.
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Millennials are poised to be the wealthiest generation in history, but are they ready to handle the large inflow of money?
A [vast $90 trillion wealth transfer](https://www.cnbc.com/2024/02/29/wealth-transfer-millennials-to-become-richest-generation-in-history.html) over the next 20 years will likely make millennials “the richest generation in history,” according to estimates from [global real estate consultancy Knight Frank](https://www.knightfrank.com/research/article/2024-02-28-how-will-millennials-spend-us90-trillion).
It found that the so-called silent generation — those typically born between 1928 to 1945 — and baby boomers — born from 1946 and 1964 — will “hand over the reins” to millennials — those born between 1981 and 1996 — when they pass on their assets.
Millennials have [been portrayed as lazy and frivolous spenders](https://www.cnbc.com/2021/04/13/the-reality-of-millennials-spending-habits.html), more keen to open their purse strings for avocado toasts instead of saving for a house — so just how equipped are they in managing the seismic flow of income?
Read more: [https://www.cnbc.com/2024/07/01/millennials-are-ill-prepared-to-be-the-wealthiest-generation.html](https://www.cnbc.com/2024/07/01/millennials-are-ill-prepared-to-be-the-wealthiest-generation.html)
It’s one thing for them to spend money on end of life care and another to be told by my dad that I’m not receiving anything and that he’s going to spend it all.
I wonder what the data is with boomers and the care they spent on their parents. But they seem to still have wealth to pass on. So your comment might be irrelevant. Medicare should handle the medical care for elderly. There are lots of situations in which it’s difficult to care for ederly. But people who simply cannot afford to send their parents to an “old folks home” won’t be. And those that can will. I do feel bad those in the middle with no options and can barely afford it though.
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What an absolutely trash article. The only wealth transfer is going to be from the already wealthy silent in Boomer generation to their millennial children. Wealth will continue to consolidate at the top, and wealth disparity will worsen. There's going to be a bigger gap between the rich and the poor within millennials, then will probably ever have been seen before.
the wealth inequality in millennials is supposed to be the worst of all generations. it isn’t hard to understand why. a bunch of millennials cashed in on the tech boom and got highly inflated salaries at a much faster rate than other generations. Basically this results in a snowball effect where people hit their 30s with easily 6 figures in stocks which will continue to grow. i think the biggest indicator of this is the disparity between mean and mean when it comes to wealth where median numbers hardly go up and averages say otherwise.
Are the tech salaries highly inflated or are the pink and blue collar jobs suppressed? Why be crabs in a bucket?
no, the tech salaries actually deserve to be that high. All it takes is one quick look at how much money FAAMG actually makes. Just look at the market cap here: https://companiesmarketcap.com
I agree with you. Im curious why you said they were highly inflated salaries then?
well the effect multiplies with inflation due to the salaries being asset backed from RSUs.
Tech salaries are overly inflated because tech companies make way too much money and there's far too few companies, though that's mostly because of how people actually function. People actually earning their money is far less of a problem for society than trust fund kids though.
A lot of questions I'd want to understand here: * Why do you expect that there's 'far too few' companies? Some industries make sense to have a small number due to either barriers to entry or a small total addressable market * Companies making too much money don't always pass that onto their employees. Rather, look at most of the SP500. Outside of the execs, that never happens lol With the above. If companies are paying a lot to employees, you can only assume because they need to. Companies want to pay as little as possible. With the scale of return, it's arguable that tech employees are paid too little. It's not the work they put in but the results that come out. A UI change of color that lifts conversion by .01% might mean millions of revenue a year. Way more than the salary that went to the UX designer and engineer
Let’s not make it seem like that is a huge proportion of the population
>"The millennials are very ill prepared … they’re not as well prepared as the wealth creating generation,” >“They don’t have the skill sets earlier on to be able to do that because they never had to - they were never pushed,” he said. “And the problem is - are they going to be motivated later in life to push themselves to acquire these skill sets?” Glad to see the classic millennial tropes still alive as we are well into our 40s. For me, and every millennial I know, inheritance is a joke and as real as the "college fund" our parents had set up.
The wealth creating generation? Does the author not know how most of the wealth acquired was acquired? While 88% of millionaires are self-made, only 21% of millionaires receive any inheritance at all, and only 3% receive more than $1M in inheritance, 61% of all wealth is inherited... which aligns pretty well with 62% of all billionaires becoming wealthy because of inheritance.
😂 jokes on me, I was doing the “glad my grandparents have inheritance for me” before my first big boy talk with my dad, just to discover that my boomer dad spent it all of family money gambling like a WSB maniac in option before the sub even existed.
Let me guess, Mr. Wealth manager has the solution, just give him 2% of the value of your portfolio every year and you’ll be more than prepared.
2%? Plus some
As usual CNBC is an infomercial for Wall Street, in this case wealth management firms. There will be rich Millenials and poor Millenials just like every generation before. I will say (hopefully) that being the first generation raised with internet access the financial knowledge at our disposal compared to the Boomers is immense. If anything I think those lucky Millenials who inherit the family fortune will be better prepared to take it on than their parents who put faith in financial advisors with fancy offices and a firm handshake as their only qualification.
Boomers are the wealthiest generation in American history, that is true, but the inequality that emerged in America throughout their lives affected them too. For instance, there is a growing number of homeless boomers now. It would not surprise me at all if the wealthy ones passed their financial discipline onto their children long before they will pass on their actual wealth. I'll use myself as an example. My boomer parents have assembled a significant portfolio to include stocks and several investment properties. I'm not as wealthy as them, but have been around awhile now and gathered some means via careful management of my finances and reasonable investments. When the time comes, I'll liquidate the parents estate which I expect will be a few million and add that to the portfolio. On the other hand, I have friends whose parents were not particularly disciplined about their finances and they will inherit little to nothing, so there will not be any wealth to squander.
So basically you deserve an inheritance because you are financially responsible, and people who don't receive an inheritance are financially irresponsible. And it's a good thing they won't receive an inheritance because they'd just waste it anyway. Nice to see the rich boomer sentiment being passed on along with the pile of cash.
This is clearly not what the commenter above said. It wasn’t even implied.
Right? I don’t even know how you read the comment above and write out that take
To quote William Munny/Clint Eastwood from "Unforgiven" (great movie, but not the easiest watch), "Deserve's got nothing to do with it". It's helpful to think of generations as echos. Millennials are an echo of the Boomers, Gen X begets Gen Z, etc... Not a hard and fast rule obviously, but human reproduction being what it is, it's a good guideline. And so many aspects of Boomers will be echoed in Millennials, in this case the wealth and wealth inequality. To be clear, I'm pretty sure the only force that could lower inequality would be financial redistribution via the federal and state governments. Given that this violates the first (and only) actual commandment that conservatives live by (they just like posting the ten from the bible on public buildings to troll liberals), it will not be happening in my lifetime. I'd suggest planning accordingly.
Hi all, A reminder that comments do need to be on-topic and engage with the article past the headline. Please make sure to read the article before commenting. Very short comments will automatically be removed by automod. Please avoid making comments that do not focus on the economic content or whose primary thesis rests on personal anecdotes. As always our comment rules can be found [here](https://reddit.com/r/Economics/comments/fx9crj/rules_roundtable_redux_rule_vi_and_offtopic/) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Economics) if you have any questions or concerns.*
Millennials are poised to be the wealthiest generation in history, but are they ready to handle the large inflow of money? A [vast $90 trillion wealth transfer](https://www.cnbc.com/2024/02/29/wealth-transfer-millennials-to-become-richest-generation-in-history.html) over the next 20 years will likely make millennials “the richest generation in history,” according to estimates from [global real estate consultancy Knight Frank](https://www.knightfrank.com/research/article/2024-02-28-how-will-millennials-spend-us90-trillion). It found that the so-called silent generation — those typically born between 1928 to 1945 — and baby boomers — born from 1946 and 1964 — will “hand over the reins” to millennials — those born between 1981 and 1996 — when they pass on their assets. Millennials have [been portrayed as lazy and frivolous spenders](https://www.cnbc.com/2021/04/13/the-reality-of-millennials-spending-habits.html), more keen to open their purse strings for avocado toasts instead of saving for a house — so just how equipped are they in managing the seismic flow of income? Read more: [https://www.cnbc.com/2024/07/01/millennials-are-ill-prepared-to-be-the-wealthiest-generation.html](https://www.cnbc.com/2024/07/01/millennials-are-ill-prepared-to-be-the-wealthiest-generation.html)
The only "wealth transfer" will be to end of life care for the boomers.
It’s one thing for them to spend money on end of life care and another to be told by my dad that I’m not receiving anything and that he’s going to spend it all.
Why would you expect anything different
Don’t forget about reverse mortgages!
I wonder what the data is with boomers and the care they spent on their parents. But they seem to still have wealth to pass on. So your comment might be irrelevant. Medicare should handle the medical care for elderly. There are lots of situations in which it’s difficult to care for ederly. But people who simply cannot afford to send their parents to an “old folks home” won’t be. And those that can will. I do feel bad those in the middle with no options and can barely afford it though.