How many avocado toasts can $90T buy? The world is about to find out as American millennials are set to inherit as much as $90T over the next twenty years, transforming the fortunes of the generation born between 1981 and 1996. And even by the end of this decade, Coldwell Banker projected millennial wealth is about to grow over 5x from 2019 levels. Which begs the question… what will they do with it?

The $90T question: According to Knight Frank’s new Wealth Report, the millennial wealth transfer will create “seismic changes in how wealth is put to use.” For starters, analysts say that younger generations are more proactive with money management, including how and who they invest with.

• Younger clients are embracing values-driven investing strategies like investing in companies fighting inequality and reducing its climate impact.
• According to Mike Pickett of Cazenove Capital, the younger generation will become more focused on private markets and alternatives, which are more accessible than ever.

How will they spend their inheritance?

Pickett also expects Gen Z to “be happier to rent property or lease assets such as cars, and to adopt subscription-led lifestyles.” And the companies that’ll benefit will be the ones that can deliver this “lifestyle.” Interest will likely also play a bigger role in their budget. A 2023 report from Credit Karma said that millennials hold an average debt balance of $49K including auto loans, mortgages, student debt, and credit cards. For the remainder of their cash, let’s turn to Frank Knight’s report:

• Spending is getting more diverse as females now make up 11% of ultra-high-net-worth individuals — up from 8% less than a decade ago.
• Younger clients are turning away from historically popular assets like real estate — which they see as “unlikely” to maintain its growth rate.

Diminishing balances: While nearly half of Americans plan to leave an inheritance, heirs are waiting longer to receive it, according to a survey from Edward Jones. 68% of Americans expect that longer lifespans will affect how much wealth is ultimately inherited — creating a vast disconnect in how great the millennial wealth transfer ultimately turns out to be.