Millennials Will Pay Taxes on the ‘Great Wealth Transfer’—and the Cut Is Staggering The transfer of wealth from baby boomers to younger generations is set to be one of the largest in history, but the final amount that will reach future heirs is far smaller than initially expected. Boomers, defined as those born between 1946 and 1964, are estimated to hold at least $93 trillion in assets, surpassing the combined wealth of Generation X and millennials. This figure is equivalent to three times the U.S. gross domestic product (GDP) in 2025, which stood at $31 trillion. However, a new report from Visa Business and Economic Insights reveals that only about $36 trillion of this wealth will actually be passed down to heirs over the next two decades. This amount, roughly $515,000 per inheriting household, is significantly reduced by various factors including debt, taxes, and charitable donations. The report highlights that the majority of the wealth transfer will be offset by substantial financial obligations. Visa estimates that heirs will face a reduction of $8 trillion from their inheritance due to taxes, fees, and charitable contributions. Additionally, boomers carry significant debt, with over $4 trillion in outstanding obligations. This includes mortgage debt, which affects 41% of those aged 65 to 79 and 31% of those 80 and older. Other debts such as credit card balances, auto loans, and personal or business loans further erode the total amount available for transfer. These financial commitments mean that even though boomers hold the largest wealth in history, the actual amount passed to their heirs will be considerably less. Once the deductions are accounted for, Visa projects that $28 trillion of the $36 trillion will be allocated to savings and investments, including property.#millennials #us_gdp #visa_business_and_economic_insights #baby_boomers #generation_x
US Dollar Index Tumbles Below 98.30 Ahead of Q1 GDP and PCE Inflation Data Release The US Dollar (USD) faces intense selling pressure against its major currency peers ahead of the release of the United States (US) preliminary Q1 Gross Domestic Product (GDP) and the Personal Consumption Expenditure Price Index (PCE) data for March, which will be published at 12:30 GMT. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.7% lower at around 98.28. The USD Index opened strongly after the Federal Reserve’s (Fed) monetary policy on Wednesday, but continued to weaken as markets anticipate the upcoming economic data. The table below shows the percentage change of the US Dollar (USD) against listed major currencies today. The USD was the weakest against the Japanese Yen. | USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | | --- | --- | --- | --- | --- | --- | --- | --- | | USD | -0.32% | -0.39% | -2.61% | -0.19% | -0.59% | -0.73% | -0.84% | | EUR | 0.32% | -0.04% | -2.36% | 0.14% | -0.26% | -0.38% | -0.49% | | GBP | 0.39% | 0.04% | -2.28% | 0.17% | -0.21% | -0.34% | -0.45% | | JPY | 2.61% | 2.36% | 2.28% | 2.58% | 2.18% | 2.00% | 1.90% | | CAD | 0.19% | -0.14% | -0.17% | -2.58% | -0.41% | -0.56% | -0.65% | | AUD | 0.59% | 0.26% | 0.21% | -2.18% | 0.41% | -0.12% | -0.23% | | NZD | 0.73% | 0.38% | 0.34% | -2.00% | 0.56% | 0.12% | -0.11% | | CHF | 0.84% | 0.49% | 0.45% | -1.90% | 0.65% | 0.23% | 0.11% | The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row.#fed #us_dollar_index #us_gdp #pce_inflation_data #us_bureau_of_economic_analysis
