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There’s a $124 trillion elephant in the room for many American families — and it’s time for those money talks to take place.
“The face of those who hold that wealth is changing dramatically,” Edward Jones CEO Penny Pennington told Yahoo Finance Executive Editor Brian Sozzi in an episode of the Opening Bid podcast (see the video above or listen below).
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In 2024, baby boomers, defined as those born between 1946 and 1964, hit what is called “peak 65,” referring to the average age of retirement. An estimated 11,400 Baby Boomers will reach 65 each day in 2025, representing about one-fifth of the population. One logical thing on the list is tackling the family estate.
The subject of money can elicit plenty of familial tension. Plenty of personal finance surveys show that when it comes to money, whether it’s negotiating a salary or discussing an inheritance, many people prefer to avoid the conversation entirely.
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An avoidant approach, however, is a mistake. One study found that 38% of Gen Z-ers and 32% of millennials expected an inheritance of money or assets, while 22% of baby boomers planned to leave an inheritance.
For families slated to take part in the “Great Wealth Transfer,” starting that conversation doesn’t have to be a heavy lift.
“What’s important in the conversation today is to talk about the legacy that a family is leaving,” Pennington said. “How they developed those assets, that wealth, what they were thinking about [and] about their relationship with money.”
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And a productive conversation can make a big difference in attitude about family and money. A recent study released by Fidelity revealed that 56% of parents hadn’t had the difficult money conversation with their children, but 81% said they would have benefited from having a discussion.
“Teaching the next generation about this is part of family legacy,” Pennington said.
Noting that her firm sometimes serves clients made up of four or even five generations, she added, “Helping them move through this process as a family is a very rewarding thing for us to be able to do.”
When gathering together to talk about wealth transfers, Pennington advised touching on topics with heirs such as their values and experiences, how they develop their relationship with money, and the kinds of things they want to invest in.
Before bringing up the inheritance issue at the next family dinner, however, it might be wise to seek out a third party, such as a professional, according to Pennington.
