Women will manage unprecedented amounts of money and reshape lives
The Great Wealth Transfer is a colossal shift in who owns money in the United States. Currently, half of all wealth is held by Baby Boomers. Over the next 20 years, this wealth will be inherited, and women will control more money than they ever have before.
A Historical Shift
This gender shift is happening in two significant ways. First, women tend to live longer than men, so more women Boomers will manage their wealth independently as they outlive their spouses. Second, wealth will be handed down through generations. While Gen X will receive a portion, the much larger millennial generation — with its record numbers of single women — will end up with the majority.
The Numbers
Some sources estimate this transfer to be around $84 trillion, while others suggest it could be as high as $129 trillion, influenced by government policies during the pandemic. This transformation is already underway.
By 2030, American women are expected to manage at least $30 trillion, more than the national GDP. We’ve never seen this kind of change in our lifetimes, or in our grandmothers’ lifetimes.
The Implications for Women and Wealth
This unprecedented shift offers unique opportunities and challenges for women. Here’s how women can harness the power of this wealth transfer:
- Financial Education and Literacy. With more money comes more responsibility. Financial education and literacy are crucial. Everyone should seek to understand investment strategies, financial planning, and wealth management. Empowering oneself with knowledge ensures better decision-making and financial independence.
- Strategic Investing. Investing wisely can significantly grow inherited wealth. Consider diversifying portfolios, investing in stocks, bonds, real estate, and other assets. Working with a financial advisor can provide personalized strategies to align investments with long-term goals.
- Philanthropy and Social Impact. Women are known for their philanthropic efforts. With increased wealth, women have the power to drive significant social change. Investing in causes that matter can not only improve communities but also provide tax benefits. Establishing charitable foundations or trusts can be a way to leave a lasting legacy.
- Estate Planning. Proper estate planning ensures that wealth is preserved and passed on according to one’s wishes. Create or update wills, set up trusts, and designate beneficiaries to manage estates effectively. Consulting with estate planning professionals can provide peace of mind and protect assets for future generations.
- Networking and Mentorship. Building a network of like-minded women can provide support and opportunities for collaboration.
Joining financial forums, attending investment seminars, and seeking mentorship from successful women investors can enhance financial acumen and open doors to new possibilities.
Planning History
The Great Wealth Transfer is not just a financial shift; it’s a historical moment for women and wealth. As women stand to inherit and manage unprecedented amounts of money, they have the opportunity to reshape the economic landscape. By embracing financial education, strategic investing, philanthropy, estate planning, and networking, women can ensure that this wealth is not only preserved but also grown and utilized to create lasting impact.
This transformation offers a chance for women to achieve financial independence, drive social change, and leave a powerful legacy. The time is now for women to prepare, engage, and lead in this new era of wealth management.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.