Altrata, a prominent player in the people intelligence space, has published a new report projecting a substantial global wealth transfer among the world’s well-heeled elite over the next decade.
Altrata’s Family Wealth Transfer 2024 report anticipates that over 1.2 million affluent individuals will transfer $31 trillion by 2033, surpassing the GDP of the US and exceeding ten times the market capitalization of Microsoft.
Drawing on Altrata's Wealth-X data, the report emphasizes the impending generational wealth transfer among individuals with a net worth of at least $5 million. It notes that individuals with net worths exceeding $100 million will constitute nearly half of this considerable wealth transfer by 2033.
Among its key findings, the report indicates rich individuals in North America and Europe will dominate global wealth transfers, making up 71 percent of the total. In North America, nearly 600,000 affluent individuals will transfer just over $14 billion. By contrast, Asia will see only one-fifth of these wealth transfers.
A significant portion of those transferring wealth, 87 percent, are “very high net worth” individuals, with $5 million to $30 million in net worth.
The research shines a spotlight on Generation X, noting most heirs in their mid- to late 40s are set to inherit the fortunes from their wealthy parents first. That flies in the face of the widespread emphasis on Generation Y and Generation Z inheritors, who are more likely to receive inheritances from their grandparents.
The report also reveals a shift in philanthropic interests among beneficiaries, who are increasingly focused on environmental and healthcare causes and show a higher engagement level with philanthropy than those passing on their wealth.
Corporate executives are set to comprise over 70 percent of ultra-wealthy individuals transferring wealth over the next decade, with 20 percent being entrepreneurs and 7 percent being sole inheritors – those who are ultra-wealthy purely through inheritance.
Another key trend among very-high-net-worth families is the growing complexity of succession planning as silver-spoon clans become more globalized, emphasizing the crucial role of expert advisors.
The report notes a change in the timing of wealth transfers, which are increasingly occurring during the lifetime of family heads. The increase in lifetime giving comes as families weigh practical considerations such as tax planning and the desire to prepare heirs for future financial stewardship.
Most firms place a limit on advisors’ sales of alternative investments to clients in the neighborhood of 10% a customer’s net worth.
Those jumping ship include women advisors and breakaways.
Firms in New York and Arizona are the latest additions to the mega-RIA.
The agent, Todd Bernstein, 67, has been charged with four counts of insurance fraud linked to allegedly switching clients from one set of annuities to another.
“While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half billion-dollar award to the State,” Justice Peter Moulton wrote, while Trump will face limits in his ability to do business in New York.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
