Bloomberg Television - Inherited wealth is on the rise in the United States #shorts #wealth #wallstreetweek
Chase Horton, a senior analyst at Cerulli Associates, discusses a new report that projects a substantial increase in wealth transfer in the US over the next 25 years. This increase is attributed to three main trends: significant wealth creation, increased inheritance, and the growing role of inherited wealth in individuals' net worth. Since 2011, privately held wealth by US households has doubled on an inflation-adjusted basis. The report notes that for the 20% of people who receive an inheritance, a larger portion of their net worth now comes from inheritance rather than earned income. This trend suggests that a majority of wealth in the economy is linked to inheritance, highlighting issues of unequal distribution despite the positive aspect of family values.
Key Points:
- Wealth transfer in the US is expected to increase significantly over the next 25 years.
- Privately held wealth by US households has doubled since 2011 on an inflation-adjusted basis.
- Inheritance is becoming a larger part of individuals' net worth, especially for the 20% who receive it.
- A majority of wealth in the economy is related to inheritance, raising concerns about inequality.
- The report underscores the dual nature of inheritance: beneficial family values but unequal distribution.