The largest intergenerational wealth transfer in modern history is already underway, with Baby Boomers and Gen X expected to pass down an estimated $84 trillion to Millennials and Gen Z over the next two decades, as reported by InvestmentNews.
According to Taylor Matthews, CEO and co-founder of tech-enabled wealth firm Farther, much of this wealth is tied to private business ownership. As founders prepare for liquidity events, firms like Farther are developing strategies to maximize value before the sale and guide families through the post-liquidity transition.
InvestmentNews reports that firms now serve two very different client profiles: founding "Gen One" clients preparing to exit and "Gen Two" heirs who are inheriting wealth and approaching financial management with new expectations. To retain both, advisors must rethink succession planning and adopt a dual-generation strategy.
Farther has committed resources to serving both sides of this divide. It offers legacy and exit-readiness tools for business owners while building education-driven, values-aligned services for younger heirs. Despite the growing importance of Millennial and Gen Z investors, traditional wealth firms still struggle to capture this demographic.
J.D. Power's 2025 U.S. Investor Satisfaction Study reports that clients under 40 make up just 11 percent of traditional firm clients. In contrast, fintech platforms claim 42 percent of that age group, highlighting a growing disconnect between conventional advisory models and the expectations of younger investors.
InvestmentNews adds that firms must now embrace hyper-personalized planning tailored to clients' life stages, goals, and ethical preferences. While technology enables this shift, it must be paired with a modernized engagement model.
The generational divide extends beyond wealth, touching on values, communication styles, and service expectations. Younger investors demand mobile-first tools, impact-driven portfolios, and data-literate advisors who mirror the tech platforms they rely on in daily life.
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