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Millennial and Gen Z Wealth Is Growing Much Faster Than Older Generations
Posted on 2/12/24 at 6:42 am
Posted on 2/12/24 at 6:42 am
quote:
Young People’s Wealth Is Growing Much Faster Than Older Generations
by Adam Hardy
February 09, 2024
At the onset of the pandemic, millennials and adult Gen Zers held onto just under 5% of total U.S. wealth. By contrast, boomers and their parents dominated nearly three quarters of it.
But now, young adults are starting to quickly close the gap. A new wealth inequality study from the New York Federal Reserve found that adults under the age of 40 have grown their wealth a whopping 80% since 2019, far outpacing the financial growth of their elders.
...
That said, the recent financial gains made by young adults have nonetheless resulted in a bigger piece of the U.S. wealth pie, and that’s good news for them no matter how you cut it.
“Faster wealth growth among younger adults,” the researcher wrote, “has led to a limited narrowing of age-based wealth disparities over the past four years.”
LINK
This post was edited on 2/12/24 at 12:53 pm
24
Posted on 2/12/24 at 6:45 am to NC_Tigah
Inheritance
Posted on 2/12/24 at 6:48 am to Houag80
quote:
Younger workers likely saw their assets grow so sharply because they invest more heavily in equities and mutual funds than older Americans, who typically shift their investments away from stocks and into less volatile assets as they get closer to retirement, the analysis shows.
People under 40 are also the poorest among the nation's generations, which means they received more stimulus funding during the pandemic, the researchers noted. Some of those young workers put their stimulus checks into the stock market, some researchers have found.
That likely helped juice this group's wealth during the past few years. The stock market has shown strong performance since January 2019 (excepting the bear market of 2022), with the S&P 500 more than doubling during that time.
"The under-40 group experienced a much greater increase in equity portfolio share than the older groups did; this increased exposure to equities — the fastest-growing financial asset class during the period — enabled younger adults to record higher growth in both financial assets and overall wealth," NY Fed researchers Rajashri Chakrabarti, Natalia Emanuel and Ben Lahey wrote in a blog post about the analysis.
LINK
Posted on 2/12/24 at 6:49 am to NC_Tigah
Nothing spells out inheritance especially after that Covid & vaccine disaster that if not outright killed older people then financially destroyed them with sickness or put out of work. Wealth growth of people under 40 at 5% totals to 9% total wealth in 3-4 years could not have happened any other way
Posted on 2/12/24 at 6:50 am to NC_Tigah
quote:
People under 40 are also the poorest among the nation's generations
Article is light on specifics and heavy on confusion.
Posted on 2/12/24 at 6:51 am to NC_Tigah
Seems like this is a function of the hyper inflation we see diminishing the wealth of older folks and NOT that younger people are doing a better job of saving
Does not sound like good news
Does not sound like good news
Posted on 2/12/24 at 7:05 am to NC_Tigah
quote:
New York Federal Reserve found that adults under the age of 40 have grown their wealth a whopping 80% since 2019
Probably a huge part of inflation. This demo spends money.
Posted on 2/12/24 at 7:13 am to NC_Tigah
Living at home will do that.
Posted on 2/12/24 at 7:36 am to NC_Tigah
quote:
At the onset of the pandemic, millennials and adult Gen Zers held onto just under 5% of total U.S. wealth. By contrast, boomers and their parents dominated nearly three quarters of it.
Uhhh. Yea. Because Boomer investments are all low risk now and the younger generations are more higher risk. Stocks took off after the shutdown was lifted.
This is so common sense this article should have been cut and the author given the DuH award of the month.
Posted on 2/12/24 at 7:38 am to NC_Tigah
Boomers are going to transfer 30 to 40 Trillion in wealth to their Gen X and Millennial offspring in the next 10 to 20 years.
Posted on 2/12/24 at 7:38 am to NC_Tigah
Also not getting married and not having children will do that.
Posted on 2/12/24 at 7:41 am to Ace Midnight
quote:
Article is light on specifics and heavy on confusion.
The millennials have probably went from 10k of savings to 18 to 20 because of the market.
Meanwhile older investors…. Boomers… are set on low risk cruise control with their 1 mil or so and their growth is much smaller.
That is how they framed it to be “millennials are soooo smart with their investments!! But still need their loans paid and other assistance”
Posted on 2/12/24 at 7:43 am to NC_Tigah
The article touched on it with younger investors being more aggressive than older ones. Being aggressive in a bull market is generally going to net greater wealth.
The question is: will they get out in time? If they have a bunch of stocks which pay no dividends and they are just counting on "stonks", we're going to see a lot of that wealth growth evaporate when the market eventually corrects for the excessive and continued (see also; unsustainable) money dump into the economy by the federal government.
The question is: will they get out in time? If they have a bunch of stocks which pay no dividends and they are just counting on "stonks", we're going to see a lot of that wealth growth evaporate when the market eventually corrects for the excessive and continued (see also; unsustainable) money dump into the economy by the federal government.
Posted on 2/12/24 at 8:02 am to NC_Tigah
quote:
Younger workers likely saw their assets grow so sharply because they invest more heavily in equities and mutual funds than older Americans, who typically shift their investments away from stocks and into less volatile assets as they get closer to retirement, the analysis shows.
This is all the study is really saying. That and older people work less than younger people, so growing wealth ends up curbed.
Posted on 2/12/24 at 8:02 am to Houag80
quote:
Inheritance
You hear a lot of posters on this forum slamming Boomers and blaming them for the sad state of the US and how they wish Boomers would die off quickly. I wonder if these same ingrates share those sentiments with their Boomer parents and grandparents? Probably not, they have to keep their true feelings to themselves so they can get that Boomer inheritance.
Posted on 2/12/24 at 8:04 am to Ace Midnight
quote:
Article is light on specifics and heavy on confusion.
Millennials and Gen Z are in the age range where their wealth should grow faster than older generations. Let's call it the "young earner age"
Millennials and Gen Z are the poorest of the "young earner age" cohorts in some time. When Gen X and boomers were in the same "young earner age", they were much better off financially (while still having investments appreciate faster than the comparable "old generation" of their day)
This post was edited on 2/12/24 at 8:13 am
Posted on 2/12/24 at 8:10 am to NC_Tigah
quote:I'm near retirement, overdue to retire, actually, but I tolerate work because I basically put aside everything I earn right now towards retirement, and the younger generations have not learned enough to push me out.
they invest more heavily in equities and mutual funds than older Americans, who typically shift their investments away from stocks and into less volatile assets as they get closer to retirement
I have not made this shift. I would be a quarter-million $ poorer over the last year if I had stopped investing in stocks and mutual funds or accepted a level of risk that is more risky than the retirement experts say I should be taking.
Posted on 2/12/24 at 8:11 am to SlowFlowPro
Any article that uses percentages as justification is full of crap and not statistically significant in any meaningful way
Posted on 2/12/24 at 8:13 am to Houag80
quote:
Inheritance
And math. Lower numbers are easier to grow on a percentage basis.
Posted on 2/12/24 at 8:50 am to NC_Tigah
Isn’t this the exact same thing that happens as a generation ages? Most people don’t have generational wealth so as they age out and stop making money, they become worth less. And the younger generation is still working to put food on the table.
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