The Great Wealth Transfer

Summary

The transcript discusses a significant shift in wealth as aging baby boomers pass on their assets, with a focus on the impact this will have on women. The study reveals that women's confidence in investing increases dramatically after receiving an inheritance, and this wealth transfer could empower them to leave unsatisfactory relationships. The conversation also touches on the lack of diversity in leadership roles within the financial industry, emphasizing the importance of diversity for economic performance and representation. The upcoming wealth transfer is seen as a catalyst for change, yet many men remain unaware of its potential impact on women.

Takeaways

• 🌟 A significant wealth transfer is imminent due to the aging of the baby boomer generation.
• 👵 Women are expected to inherit the majority of this wealth, as it typically passes to widows first.
• 💰 Women are projected to inherit tens of trillions of dollars over the next few decades.
• 🔄 The inheritance of wealth is likely to change the dynamics of wealth distribution in society.
• 🚀 After receiving an inheritance, women's confidence in investing increases significantly.
• 💔 Inheritances and wealth transfers can lead to women leaving relationships they are unhappy in.
• 🚺 The financial services industry lacks diversity, with women underrepresented in senior leadership roles.
• 🌐 Diversity in financial services is crucial for economic performance and innovation.
• 🤝 Men may not fully grasp the impact of the upcoming wealth transfer and its benefits for women.
• 🏦 There is a need for greater understanding and adaptation to the changing financial landscape within financial institutions.
• 🌈 The shift in wealth and power towards women has the potential to reshape economic and social structures.

Q & A

What significant shift is global Wall Street on the verge of experiencing?

Global Wall Street is about to experience a major transfer of wealth as aging men, who have amassed capital, pass from the scene.

How does the new study by US suggest the wealth transfer will impact gender dynamics?

The study indicates that there will be a gender component to the wealth transfer, with women around the world set to inherit a significant portion of the wealth.

What is the average age of widowhood mentioned in the transcript?

The average age of widowhood mentioned is late fifties.

How does the inheritance or wealth transfer affect women's confidence in investing?

After receiving an inheritance or wealth transfer, women's confidence in investing soars from around 45% to 81%, surpassing the confidence levels of men.

What impact does inheritance have on women's relationships, according to the transcript?

Inheritance leads to a significant increase in the number of women who feel they can leave relationships they don't want to be in, especially among younger generations like millennials and Gen Z.

What is the current state of women in senior leadership roles in global Wall Street?

There are not many women in senior leadership roles in global Wall Street, and although there has been some improvement, it has not been sufficient considering women make up 51% of the population.

Why is diversity in financial services important for the economy?

Diversity is a driver of superior performance in financial services, while homogeneity can lead to excessive risk-taking, as seen in the subprime crisis.

How does the wealth transfer affect women's economic power, as mentioned in the transcript?

The wealth transfer will empower women economically, as they are expected to inherit tens of trillions of dollars over the next couple of decades.

What misconception do men have about the beneficiaries of the great wealth transfer?

Men tend to underestimate the extent to which women will benefit from the wealth transfer, with only 14% identifying women as the primary beneficiaries.

How does the transcript suggest the financial industry should respond to the upcoming wealth transfer?

The transcript suggests that the financial industry should embrace diversity and ensure that women are represented in senior roles, as they are the ones coming into a significant amount of wealth.

What is the significance of the statement 'women kept the country out of recession'?

This statement highlights the economic power and influence women have, which is expected to grow with the wealth transfer, and underscores the importance of recognizing and utilizing this power in the financial industry.

Outlines

00:00

📈 Wealth Transfer and Gender Dynamics

The script discusses a significant shift in global wealth as aging men pass on their capital, often to widows first, leading to women inheriting a majority of wealth. The study highlights that women's confidence in investing increases significantly after receiving an inheritance, potentially changing their financial behaviors and relationships. The conversation also touches on the underrepresentation of women in senior leadership roles in finance and the importance of diversity for economic performance.

Keywords

💡Wealth Transfer

The process by which assets are passed down from one generation to the next, often due to aging individuals. In the context of the video, it refers to the significant shift of wealth from baby boomers to their heirs, particularly women, as they become widows and inherit assets.

💡Generational Issue

A challenge or trend that affects multiple generations, often related to social, economic, or cultural changes. In this video, it is used to describe the impact of the wealth transfer from one generation to the next, with a focus on the gender component.

💡Gender Component

Refers to the aspect of a situation or issue that is influenced by or pertains to gender. In the video, it emphasizes the role of women in the upcoming wealth transfer and the potential changes this could bring to investment behaviors and economic power.

💡Investment Confidence

The level of self-assurance an individual has in their ability to make investment decisions. The video suggests that women's investment confidence increases significantly after receiving an inheritance or wealth transfer.

💡Marriage Dynamics

The way in which marriage relationships function and evolve over time. The video discusses how inheritance and wealth transfer can empower women to leave relationships they are not satisfied with, changing the dynamics within marriages.

💡Diversity in Leadership

The representation of different genders, ethnicities, and backgrounds in senior leadership roles within an organization. The video touches on the lack of diversity in global Wall Street leadership and the importance of addressing this imbalance.

💡Economic Power

The ability to influence economic decisions and outcomes. In the video, it refers to the growing influence women will have as they inherit wealth and become key players in the economy.

💡Corporate Culture

The set of values, beliefs, and practices that define a company's internal environment and guide its operations. The video implies that corporate culture can be a barrier to diversity and inclusion, particularly for women in leadership roles.

💡Financial Services

The economic sector that provides economic services to individuals, businesses, and governments. The video emphasizes the importance of diversity in this sector for both economic performance and social representation.

💡Inertia

The tendency of a system or organization to resist change and maintain its current state. In the context of the video, it refers to the resistance to change in leadership diversity despite the recognition of its benefits.

💡Subprime Crisis

A financial crisis that occurred in 2007-2008, primarily due to the collapse of a housing bubble caused by high-risk mortgage loans. The video uses this as an example of the dangers of homogeneity in decision-making.

Highlights

Global Wall Street is on the verge of a significant wealth transfer due to aging men.

A new study shows a gender component to the wealth transfer, with women set to inherit wealth.

Baby boomers have built an unprecedented amount of wealth, and as they pass, the money goes to widows first.

The average age of widowhood is late fifties, and then wealth passes to children.

Women are expected to inherit tens of trillions of dollars over the next few decades.

Women's confidence in investing increases significantly after receiving an inheritance or wealth transfer.

Inherited wealth empowers women to leave relationships they don't want to be in.

There is a lack of women in senior leadership roles in global Wall Street.

Diversity in financial services is a driver of superior performance, while homogeneity can lead to excessive risk.

Men underestimate the impact of the wealth transfer on women, with only 14% recognizing women as the primary beneficiaries.

Women played a crucial role in keeping the country out of recession, showcasing their economic power.

The financial services industry needs to reflect the changing world and the incoming wealth of women.

Corporate culture may be a barrier to increasing diversity in leadership roles.

The wealth transfer is a major shift that is not fully understood or appreciated by men.

The financial industry should care about diversity to better serve the incoming wealth of women.

The societal shift towards gender equality is reflected in the economic power of women, as seen with figures like Taylor Swift and Beyoncé.

The upcoming generational wealth transfer will have significant consequences for women's financial independence and decision-making.

Transcripts

This is Wall Street week. I'm David Westin.

Global Wall Street is on the cusp of a major transfer in wealth as aging men

who amass a capital pass from the scene. Most often this is described as a

generational issue, but all of us has released a new study showing that there

will also be a gender component to it. As great wealth is put in the hands of

women around the world. We talked to the founder and CEO of us,

Sallie Krawcheck, about what they found. The baby boomers have built an

historically unprecedented amount of wealth.

Baby boomers are hitting 80 this year. And as they begin to pass away, that

money gets passed down. And you talk to most people and you say,

who's the money going to? And they say, the millennials.

The bottom line is it's going to women because it goes to the widows first.

Average age of widowhood, by the way, late fifties goes to the women first and

then goes on to the kids. And so

the great wealth transfer is about to do something that Leanne did not, which is

get to women the majority of wealth in this country.

Women are going to inherit tens of trillions of dollars over the next

couple of decades. Well, that's a big shift, potentially a

big shift. But what do you think are the

consequences of that? I mean, how are women different from men

when they invest? Well, so let's back up, because it does

tend to change everything. One of the big findings you and I were

talking about earlier is we tend to think women don't invest as much as men

do. It's because they don't have the money,

confidence that men do. What this survey has shown is it's not

they don't have the confidence or they don't have the money.

It's they don't have the money. So they don't have the confidence to put

that money in the hands of women. Their confidence soars.

It goes from something like 45% of women are confident round money to 81% after

they get an inheritance or a wealth transfer.

Become more confident than men. The other thing that changes marriages,

marriages, something like double the amount of women who get an inheritance

get a wealth transfer, you know, say that they could leave relationships that

they don't want to be in, which is really significant.

You see it for young millennial and Gen Z women who are three times the number

of them say they'll leave a relationship as those who don't get an inheritance.

So as we look around the industry today, I mean, it's sort of my experience

looking at it. We don't have many women in the senior

most leadership roles in sort of global Wall Street.

Correct. And maybe it's gotten better, but I'm

not sure how much better it's gotten. What's causing that, do you think?

Yeah, it's gotten better. It hasn't gotten better enough when you

consider that women are 51% of the population.

You know, it's inertia. You know, an object in motion stays in

motion. An object of rest stays at rest.

But it's but it's truly important and is truly important beyond the.

Gee, I wish there were a handful of women who get to senior roles and do

well. Good.

Yes. That that matters.

What really matters is the financial services is, of course, the lifeblood of

our economy. And the research shows you that

diversity is a driver of superior performance.

That homogeneity, conversely, means you take you trust each other too much, You

take on more risk. Thinking subprime crisis here, right?

When you don't have that diversity of thought perspective background.

So we should all care about diversity in financial services because it is again

the lifeblood of the economy. And we should also care because if we

are a woman, we want to be reflected. If we're fathers and we have daughters,

we want them to be reflected in the industry.

You know, neat needs to do and will do with more diversity, a better job for

women, again, who are coming into a ton of money with the great wealth transfer

in your York, do you think that the leadership of the large financial

institutions and by that I mean the CEO, the C-suite and the board understand

what you just said, because over the last few months we've seen quite a few

senior women leave their roles. Now maybe we just notice it more, but it

feels like there are a lot of senior women moving on.

Yeah, you know, look, I think everybody believes in the power of, you know,

having a team that is diverse and can debate.

I mean, forget about this blowback on and I but if you're in senior

leadership, you know, sort of understanding that you want these

different perspectives, I think it can be hard to overcome corporate culture.

What I do think is men do not see the great wealth transfer coming and do not

fully understand the difference that's going to make.

And how do I know that in the last survey we asked men, we said, here's

this great wealth transfer. Who do you think is going to benefit?

Just 14% said women. Most people said the next generation me.

I think it's going to be men, you know, And look at what we saw this summer

where women kept the country out of recession.

You know, they're going to see Barbie through.

We're going to see either Taylor Swift and Beyoncé and all of the economic

power that generated. And you say, look, this is a world

that's beginning to change.