The Great Wealth Transfer marks a monumental shift in wealth ownership in the United States. Currently, half of all wealth is held by Boomers, but over the next 20 years, it will be inherited, leading to a significant increase in the financial wealth and power of women. By 2030, American women are projected to hold at least $30 trillion, surpassing the national GDP and reshaping societal dynamics in unprecedented ways. This historic transition presents a unique opportunity for women to take control of their financial futures and make a lasting impact.
The ‘feminization of wealth’ heralds a new era of financial empowerment for women, with longer-living women set to inherit windfalls of the Great Wealth Transfer which is estimated between $80 trillion to $120 trillion. To capitalize on this opportunity, women must prioritize arming themselves with financial knowledge and mapping out comprehensive plans for their financial futures, encompassing retirement, investments, and legacies. By proactively preparing for the Great Wealth Transfer, women can position themselves to thrive in the changing economic landscape and make history on their own terms.
Here are three key ways the Great Wealth Transfer can affect women and how they can leverage this transformative opportunity:
- Inheritance: As beneficiaries of the wealth transfer, women may receive substantial inheritances directly or indirectly through spouses. It’s essential for women to educate themselves on financial strategies that maximize wealth growth beyond traditional savings accounts. By understanding investment options and planning for long-term financial security, women can ensure their inheritances have a lasting impact on their financial well-being and their future generations.
- Impact Investments and Venture Capital: Research shows that women-led startups only receive about 3% of all fundraising in venture capital. Indicating growing opportunities for women to participate in impact investments and support women-led ventures and female-focused philanthropic efforts. The Great Wealth Transfer presents a significant opportunity for women to invest in initiatives aligned with their values and passions. By investing in women-led missions and organizations, women can drive positive social change while achieving financial returns.
- Financial Empowerment: The Great Wealth Transfer represents a pivotal moment for women’s empowerment, as women step into greater levels of financial power and freedom. However, many women still lack financial confidence due to historical disparities in access to capital and wealth. Over the next 5-10 years, this is poised to change, as women gain increased access to over $30 trillion dollars. By equipping themselves with financial knowledge and seeking guidance from experienced financial planners, women can navigate this transition with confidence and decision making power to make smart money moves.
In conclusion, the Great Wealth Transfer is a transformative moment in history, offering women unprecedented opportunities for financial empowerment and long-lasting impact. So Mavens, it’s time to prepare and embrace this opportunity by educating ourselves, seeking wise counsel, and proactively planning for our financial futures. By doing so, we can harness the power of the Great Wealth Transfer to create lasting prosperity and leave a meaningful legacy for our future.
