Millennials, those born between 1981-1996, could experience a substantial increase in wealth—almost a five-fold growth compared to their current financial status, according to a study by WealthEngine and Coldwell Banker Global Luxury. By 2030, many millennials are expected to inherit $30 to $68 trillion (even estimates of $140 trillion) from their baby-boomer parents, marking one of the most significant wealth transfers in history.

However, it’s important for millennials to recognize that while this transfer of wealth may be on the horizon, they shouldn’t entirely rely on receiving as much as they anticipate. As baby boomers live longer, many are choosing to retire early and spend their money on traveling and second homes. And by living longer, they may be spending more money on long-term care and high costs associated with age-related health issues.

Still, financial experts predict that millennials as a whole will become the richest generation. That’s good news for this group since they’ve often had to grapple with financial challenges such as huge college debt, soaring real estate costs, and the struggle to secure well-paying jobs. With this wealth transfer, the future looks to be less of a struggle. That said, it’s important for millennials to understand how to manage this wealth.

If you fall into the millennial category, financial professionals recommend becoming financially literate by following these tips:

• Meet with a professional advisor. It’s never too early to meet with an advisor who can offer you personalized advice and create an optimal strategy to distribute and invest your wealth. Advisors can also help you determine how to plan if the wealth comes your way differently than you imagined or if it comes in the form of assets other than cash.
• Attend workshops and webinars on financial planning. These often share valuable insights into tax strategies, savings, and investment options.
• Take advantage of other free online resources such as courses, tools, and platforms to learn more about financial planning.
• Think about causes you may want to support now and in the future and make a plan. 

It is said that with great wealth comes great responsibility. By increasing financial literacy during these life changes, newly found assets can create many positive impacts for you and your community. Having a secure financial future and also the power to affect change in your community through thoughtful philanthropic planning is easier than you think. The Community Foundation of Anne Arundel County can work with you and/or your professional advisor to help you determine how to allocate a portion of your assets (noncash as well as cash) to causes that matter to you. Contact CFAAC Director of Gift Planning John Rodenhausen at john@cfaac.org to learn more.

This is the second article in a four-part series about the Great Wealth Transfer.