great

The largest wealth transfer in history has begun

welcome back I love this story the

largest wealth transfer in history has

begun a new report shows ultra

high-net-worth individuals people with

assets of 30 million dollars or more

will transfer nearly 4 trillion dollars

to the next generation by 2026 Brian

bernburg talking about this this morning

and this is a big impact a lot of money

movement but how does that flow through

the economy it's it's about four

trillion from ultra high-net-worth

individuals but if you look in totality

across the globe over the next three

decades it's more like 30 trillion

dollars huh moving from the baby boom

generation to generation X and

Millennials how do you feel about

Millennials of 30 trillion dollars

that's fine and the question is you know

what okay so 30 percent of this wealth

is is liquid basically so this is money

that they're going to be able to use at

their own discretion but most of it is

actually tied up in ownership of private

companies the question is will these

inheritors want to run these companies

or will you see a lot of business sales

public offerings of these companies

which would increase liquidity more most

of the wealth that we're talking about

here was self-made in other words this

is first generation wealth they've never

been to the transfer process before

that's going to be an issue as well

because a lot of the countries where you

have these high net worth individuals

Germany Japan the US have very high

estate taxes so a big take could be

coming for the federal government's in

these countries as well so a lot of

issues that both the inheritors and

those passing on the wealth have to deal

with it in some cases they just haven't

dealt with this fascinating you want to

put this money into perspective three

point nine trillion dollars is enough to

purchase the ten largest companies in

the world including Apple Microsoft and

Facebook just to give you a sense of how

much money we're actually talking about

and and what's being transferred and you

say that largely this money is in

companies that the founders started yeah

privately held businesses that they've

run and and you know the question is is

a next generation want to run them and

that's really not clear and again if

it's not clear then okay who's going to

buy these companies who's going to run

them what are the public offering

opportunities here big big question and

and where does that money go and that's

a very good question because we are told

we were talking about before both

Hillary Clinton Donald Trump coming

with their own tax policies what are the

impacts going to be on the investment

climate based on either one of those

well this is why it's so important in

these countries to make sure that you

have a climate that's conducive to

investment because your choice here is

consumption or investment and of course

with low grew the gloww growth we've

seen we want to see more investment

trillions and trillions of dollars

higher it taxes on investment like you

Larry Clinton are talking about really

are counterproductive at this point when

you see such a massive transfer look

this is a good news story it's great

we've generated trillions and trillions

of dollars of wealth but we've got to

have an environment that's conducive to

continue to invest and build that and of

course

katelyn you know the fact is is these

people who are transferring this money

it's going to be dictated how they

transfer it by tax policy you know are

they going to invest it are they going

to donate it are they going to just pass

it on I mean and that implicates what

the inheritance tax

you know philanthropy tax absolutely

it's a question about how you get this

money moving and also I mean this shows

that how empowered this generation is

financially if you think about it if

they can get this money back flowing

again but regulations are a huge part of

this of course and both sides are

talking about it but it's not it hasn't

really taken center stage I think a

story like this certainly should raise a

lot of eyebrows of okay how do we get

this going because you want the money to

move throughout the economy to move the

needle on economic growth I will keep

talking about this fascinating stuff

still