Wealth Transfer Influences Consumer Trends
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 hours ago
0mins
Source: Newsfilter
- Scale of Wealth Transfer: Visa Business and Economic Insights (VBEI) estimates that $36 trillion will transfer from baby boomers to Gen X and millennials over the next 20 years, although the actual transferable wealth is significantly reduced after accounting for debt and retirement spending.
- Expected Consumer Spending: Of the $36 trillion, approximately $8 trillion is expected to be spent, primarily concentrated in big-ticket items such as autos, housing, travel, and retail, which will drive an average annual real spending growth of about 0.1 percentage points.
- Trend of Early Wealth Sharing: More families are choosing to share wealth earlier, with one in four millennial homeowners receiving parental down payment assistance, and 69% of millennials citing inherited wealth as critical for home purchases, indicating the immediate impact of wealth transfer.
- Opportunities for Financial Institutions: As the wealth transfer progresses, banks and wealth management firms face significant opportunities to compete for assets from newly inheriting households, especially given that these households already possess higher net worth.
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Analyst Views on V
Wall Street analysts forecast V stock price to rise
25 Analyst Rating
23 Buy
2 Hold
0 Sell
Strong Buy
Current: 357.250
Low
330.00
Averages
406.59
High
450.00
Current: 357.250
Low
330.00
Averages
406.59
High
450.00
About V
Visa Inc. is a global payments technology company. It facilitates global commerce and money movement across more than 200 countries and territories among a global set of consumers, merchants, financial institutions and government entities through technologies. It operates through the Payment Services segment. It provides transaction processing services (primarily authorization, clearing and settlement) to its financial institution and merchant clients through VisaNet, its proprietary advanced transaction processing network. It offers a range of Visa-branded payment products that its clients, including nearly 14,500 financial institutions, use to develop and offer payment solutions or services, including credit, debit, prepaid and cash access programs for individual, business and government account holders. It also provides value-added services to its clients, including issuing solutions, acceptance solutions, risk and identity solutions, open banking solutions and advisory services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital Requirement Analysis: To achieve an annual income of $60,000, a 3.5% yield requires approximately $1.714 million in capital, while a 12% yield only needs $500,000; although high yields seem attractive, stable growth investments may prove more advantageous in the long run.
See More
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