The largest wealth transfer in history is already underway. Close to $84 trillion in assets will flow from Baby Boomers to younger generations over the next two decades. This wealth transfer isn’t just changing bank balances. It’s fundamentally reshaping entire investment markets as Millennials and Gen Z bring radically different values, risk appetites, and investment preferences that should create new opportunities across traditional and alternative asset classes.
The numbers are staggering. Nearly $124 trillion in assets is set to change hands through 2048, according to estimates by the consulting firm Cerulli Associates. “More than 50% of the overall total volume of transfers ($62 trillion)”, stated the firm, “is expected to come from those who are currently high-net-worth and ultra-high-net-worth, which together make up only 2% of all households.” The recipients, primarily members of Generation X (those born between 1965 and 1980), millennials (1981-1996) and Gen Z (born after 1997), are expected to inherit some $106 trillion of the total $124 trillion, mainly from baby boomers. To put this in perspective, Millennials are on track to become the richest generation in history.
This Great Wealth Transfer, as it’s being called, represents a fundamental shift in how wealth gets invested, managed, and deployed across markets. As these younger inheritors take control of family fortunes, their distinct investment philosophies are already creating ripple effects across everything from cryptocurrency markets to sustainable investing funds.
A Generation Gap in Investment Philosophy
The philosophical chasm – in how different generations approach investing – between Boomers and Millennials / Gen Z is immense. 72% of millennial and Gen Z investors surveyed for Bank of America Private Bank’s “2024 Study of Wealthy Americans” believe “it’s no longer possible to achieve above-average returns solely on traditional stocks and bonds.” This represents a dramatic departure from the conservative stock-and-bond portfolios that built much of the wealth being transferred.
Young investors are displaying a fundamentally different risk profile. A 2022 Bank of America study found that 75% of Millennials and Gen Z investors believe it’s impossible to achieve above-average returns solely through traditional stocks and bonds. They’re actively seeking alternatives, and their choices are reshaping entire asset classes.
Young investors traditionally take more risk, given their timelines and age. Yet even adjusted for age, millennials and Gen Zers choose to invest further out on the risk curve, with meme stocks, stock options, cryptocurrencies, and other more speculative asset classes. While their parents and grandparents focused on wealth preservation, the next generations are aiming for aggressive growth.
Digital Assets and Cryptocurrency: The New Gold Rush
Perhaps nowhere is the generational divide more apparent than in cryptocurrency and digital assets. Twenty-eight percent of high net worth individuals aged 21-43 years old saw crypto as the second greatest opportunity for growth, just behind real estate. This enthusiasm persists despite volatility concerns; With 84% of Gen Z investors viewing cryptocurrency as a risky investment, nearly two-thirds (65%) of Gen Z survey respondents plan to invest in crypto in 2025.
Already, according to the Bank of America Private Bank study, wealthy investors ages 21 to 43 show a greater preference for crypto and digital assets, private equity, and direct investment in companies — even founding their own company or brand — than those ages 44 and up. This shift is creating substantial new demand in cryptocurrency markets and forcing traditional financial institutions to rapidly expand their digital asset offerings.
The Alternative Investment Boom
Beyond cryptocurrency, younger investors are driving explosive growth in alternative investments. The private equity sector has experienced explosive growth, expanding from $4.5 trillion in assets under management in 2015 to $9.8 trillion in 2022 – a 118% increase according to Bain & Company’s 2023 Global Private Equity Report. This growth is largely fueled by younger investors’ appetite for higher-risk, higher-reward investments.
Angel investing is another asset class seeing significant growth. The idea of directly supporting innovative startups has led to a 20% increase in angel investing, increasing from $24.8 billion in 2015 to $29.8 billion in 2022. For younger investors, angel investing is about returns and having a direct impact on innovation and supporting companies that align with their values.
Sustainable Investing and Global Diversification
Perhaps the most transformative trend emerging from the wealth transfer is the integration of environmental, social, and governance (ESG) factors into investment decisions. 68% of Gen Z and 65% of Millennials report having more than 20% of their portfolios currently invested in companies or investment funds that seek to make a positive social or environmental impact, compared with only 37% of Gen X and 22% of Baby Boomers. Even more tellingly, 80% of Gen Z and Millennials plan to increase allocations to sustainable investments over the next year.
Young inheritors are also more globally minded in their investment approach. A majority of millennials and Gen Zers say they want enhanced offshore investments, according to the survey. Of particular interest are the new wealth hubs around the world, including Singapore, the UAE and Saudi Arabia.
This global investment perspective stems from their life experiences. “They have traveled more. They understand global dynamics. That enables them to be interested and get some of the returns that they’re seeing in these markets.
Entrepreneurship Over Traditional Employment
A fundamental shift in how young people view wealth creation is also emerging. Among Gen Z, 34% think starting a business is the best path to wealth creation, whereas 39% of the general population prefers investing in property. This entrepreneurial mindset is creating new demand for business financing, startup investments, and entrepreneurship-focused financial products.
On the whole Gen Z believes that starting a business is an easier way to build generational wealth, reflecting an optimistic outlook that’s driving risk-taking and investment in growth opportunities.
Real Estate: The Constant Across Generations
Despite all the innovation in investment preferences, one area remains consistently popular across generations: Real estate. In Bank of America’s survey of wealthy individuals, it was the only investing category to be similarly preferred by both older and younger respondents.
However, even real estate investing is evolving with younger preferences. 62% of Millennials and Gen Z expect to inherit real estate. This might be a primary residence, a vacation property, or even land. As they inherit properties, Millennials and Gen Z are more likely to approach real estate investment with fresh perspectives, potentially focusing more on sustainable properties, urban development, and technology-enabled real estate investments.
Looking Ahead: A Transformed Financial Landscape for NNN Lease
As this historic wealth transfer accelerates, we’re witnessing the emergence of an entirely new financial ecosystem. Traditional investment strategies are being supplemented—and in some cases replaced—by approaches that prioritize growth, sustainability, and technological innovation.
The $84 trillion flowing to younger generations in the next two decades is fundamentally altering how wealth gets deployed in the economy. From cryptocurrency adoption to sustainable investing, from global diversification to entrepreneurship and angel investing, every sector of the financial markets will be impacted by the ripple effects of changing investment preferences.
For NNN lease investors, the Great Wealth Transfer presents both compelling opportunities and significant challenges. As younger inheritors take control of family wealth, their distinct investment preferences will reshape demand across all asset classes, including commercial real estate and NNN lease properties. While real estate remains a favorite among young investors and is the only investing category that both older and younger respondents similarly prefer, generation approach to real estate investment differs widely across the generations.
Traditional NNN lease investors may find younger inheritors drawn to these assets for their passive income characteristics and stability, particularly as NNN properties offer steady flow of income guaranteed by long-term contracts with minimal hands-on management responsibilities. The new generation’s emphasis on ESG criteria and technological integration may drive demand toward NNN properties with sustainable tenants, green-certified buildings, and technology-enabled property management systems.
The generational shift also presents opportunities for NNN market growth. As Gen Z embraces renting as a lifestyle choice and is expected to become the largest demographic of renters in America by 2030, demand for well-located commercial properties serving this rent-friendly demographic could grow. Young inheritors’ preference for alternative real estate investments and experience-driven spaces may also shift the types of tenants and property concepts that become attractive NNN investment opportunities.
Understanding these wealth transfer dynamics isn’t optional for NNN investors. Our team is here to position your portfolios to ensure you and your children benefit from the greatest redistribution of assets in human history, where the investment decisions of a new generation of wealthy inheritors will fundamentally reshape commercial real estate demand patterns for decades to come.
Contact our team of investment experts today for a free consultation: 314-997-5227. Our buyer representation is free.
