Baby boomers and millennials face 'daunting' task as stocks trade near record highs: Morning Brief

Here are the takeaways from today's Morning Brief, which you can register to receive every morning in your mailbox accompanied by:

I had a major realization at the Cannes Lions Festival in France this week watching Nvidia (NVDA), Microsoft (MSFT) and Apple (AAPL) battle for the most valuable company on our stellar app.

Like most millennials, I have no idea how rich my baby boomer parents were. Like, no idea. None. Nothing. Nada.

Now, I suspect neither owns the sharply rising shares of Apple or Nvidia (I don't think stocks were ever their thing), but I imagine other baby boomer parents do so, and may very well retain their positions until they die.

What should a millennial do with these lucrative positions? How do they access their parents' trading and investment accounts? Did our parents think about all these things? What exactly do I need to know about their heritage today?

The generational transfer of wealth from baby boomers to their millennial offspring is beginning — so get ready now, JPMorgan CMO Carla Hassan reminded Rachelle Akuffo and me at Cannes Lions.

“It's completely uncomfortable. It's also intimidating,” Hassan said of financial conversations between boomers and millennials.

To get started, JPMorgan offers a good model here for how to think about planning for generational wealth transfers.

The impact of generational wealth transfer on markets and the economy in the decades to come should not be underestimated.

Cerulli Associates estimates that wealth transferred through 2045 will reach a staggering $84.4 trillion. In detail, this represents $72.6 trillion that will be transferred to heirs, while $11.9 trillion will be donated to charity.

More than $53 trillion will be transferred from baby boomer households, representing 63% of all transfers.

“Conversations about family money can be emotional and tense (as the buzzword of the day seems to be), but they don't have to be, especially if everyone is on the same playing field,” Kerry Hannon, Yahoo Finance personal finance and retirement expert. said.

“It can even start by talking about special items that your parents have that have meaning to you, such as a grandfather clock that has been passed down through generations, or a certain painting that you know they bought in Paris during a trip when they were young married.

Take me.

In my brain, I sketched out the case that my parents will be here forever and that there is no need to have The Talk. I also remember my dad yelling at me when I asked for an allowance – so somewhere in my head that's an emotional blocker.

The story continues

I also don't know where to find anything important to them if something were to happen. I don’t even know where my dad lives in Florida – I haven’t seen him since he moved there over five years ago! My mother lives five miles from me, but I still have to knock on her door to get into the house – no key!

Kerry's advice is something to keep in mind as I work through this startup conversation with Mom and Dad.

But as they say, it’s a two-way street!

“More and more clients are choosing to make wealth transfers to their children while they are alive instead of waiting until they pass away, because they can appreciate the impact of their gifts when the children have it most need,” said the founder and CEO of Hemington Wealth Management. Eileen O'Connor.

The clock is turning.

Brian Sozzi is the editor-in-chief of Yahoo Finance. He is also the host of the show “Opening offer” Podcast. Follow Sozzi on Twitter/X @BrianSozzi and on LinkedIn. Advice on deals, mergers, activist situations or anything else? Email [email protected]. Are you a CEO and want to participate in Yahoo Finance Live? Email Brian Sozzi.

Click here for in-depth analysis of the latest stock market news and events that move stock prices.

Read the latest financial and business news from Yahoo Finance