Baby boomers are set to transfer some $84 trillion in assets to younger generations over the next few decades, but 72% of Americans in a new poll say they are not confident they could manage a windfall on their own, Citizens Financial Group reported Wednesday.
As the "great wealth transfer" accelerates, 31% of Americans expect to receive an inheritance within five years, with 55% of millennials and 41% of Generation Z feeling this is likely to happen in their future.
Although many are unsure how they would manage a windfall, they have ambitious ideas about how they would spend the money:
- Invest it: 60%
- Pay off debt: 51%
- Buy a new car: 36%
- Start a new business: 34%
- Pay for a relative's education: 33%
- Travel: 26%
- Buy a vacation home: 20%
Sixty-one percent of survey respondents said they would turn to a financial advisor for guidance if they received a large influx of money, while 25% said they would engage a banker.
However, nearly a third of respondents said they would need to receive an inheritance of at least $1 million to seek professional direction on how to manage it.
This reluctance to seek financial advice has to do with people's perception of financial professionals, according to the survey. Eighty-three percent of respondents do not think that financial advisors or bankers have their personal financial goals in mind when providing advice.
Instead, people are turning to alternative sources with mixed results. Fifty-one percent of respondents said they have acted on financial guidance they found on social media, with about a quarter following advice for saving strategies and investments. Even more said they would use an artificial intelligence-powered system for financial advice.
