Generational Takes on What to Leave Behind

Every generation charts its own path to building wealth. Along the way, experiences shape not only how people grow their portfolios and manage wealth, but also how they pass it on.

The 2024 Schwab High Net Worth Investor Survey of more than 1,000 wealthy Americans highlights clear generational differences in how investors approach generational wealth transfer. One of the most revealing findings is that baby boomers' attitudes toward wealth transfer differ from their millennial counterparts. While nearly all (97%) of wealthy Americans plan to gift or pass on their wealth, the younger generation is more than twice as likely to do so during their lifetime.

Baby boomers (born between 1946 and 1964) are the generation that grew up during a period of sustained economic growth. For many boomers, wealth-building wasn't just about accumulation; it was about securing opportunity for the next generation.

Charlie Gregory, 77, former president of Benedictine University, said his experience growing up shaped his approach to building wealth as an adult:

"As much as my parents wanted to offer me the possibility of a future without the hardships, sacrifices, and struggles they'd experienced all their lives...they were unable to do so. However…they taught me the importance of a good work ethic and to seize opportunities that came my way. I've also been fortunate to have good mentors who were ethical, caring, and took time to guide me along the way."

Gregory's perspective is familiar to many of his generation. Boomers may not have inherited much, but they worked hard to provide more for their children.

"I want my children and grandchildren to have some of the same experiences as I did, but at the same time, not the same struggles," he said. "I want them to be able to invest in themselves, in their vision and [their] dreams, without too many financial worries."

For Gregory, it's all about values and mentorship. Many boomers share this perspective on inherited wealth and leaving a legacy. Their focus is not just on passing down assets, but on instilling values and preparing the next generation for success.

"My children and grandchildren are in what I call the 'trying to make it' stage of life," Gregory said. "As they get older, I'm constantly encouraging as well as questioning them about their 'tomorrows' and how they intend to not only grow professionally, but financially.

"This active role in guiding the next generation financially reflects a generational mindset: Boomers want to teach their kids, not just hand over money. That attitude also shapes how they approach the "Great Wealth Transfer," or the upcoming shift of wealth from boomers to younger generations.

By contrast, millennials (born between 1981 and 1996) came of age during the 2008 financial crisis, watched the housing bubble burst, and entered a workforce amid rising costs. These factors helped shape their approach to saving and investing. Despite—or perhaps because of—the circumstances they faced, millennials may be more flexible in their approach to building and managing wealth and are more likely to embrace a broader range of investment strategies.

Boomers tend to favor traditional methods of growing wealth, such as 401(k)s and publicly traded equities. Millennials, however, are more focused on diversification and applying their experiences—such as navigating real estate or building multiple income streams—to build financial security.

Graham Kuzia, 39, senior manager at a Fortune 10 company, took the lessons passed down from his father and applied them to his life. As a child, he learned the ins and outs of the stock market and other financial practices from his father.

"Every day, we'd look at the newspaper and follow certain stocks so that I could learn how they go up and down," Kuzia said. "Even though my father was a mechanic and didn't have a whole bunch of financial investing experience, it was important for him to teach me about the market."

But Kuzia didn't stop there. After college, he began investing in his 401(k) and ventured into real estate, buying properties with his wife. According to Schwab's High Net Worth Investor Survey, three in five wealthy Americans who intend to pass on wealth say they began planning before age 45. Kuzia is no exception—his shared goal with his wife is to build a foundation to provide for their daughters—currently six and nine years old—in the future.

"They see us doing work at the rental properties. When we went to look at the houses and put in offers, they came with us. So, we're trying to start that [education] from a young age," he said.

As a self-proclaimed early retiree-in-the-making, Kuzia's ambitious goal is to retire by 50. It's not just about accumulating wealth; it's about building a life where he doesn't have to work longer than necessary. And yes, he's already talking about financial planning with his daughters.

"I've always wanted to teach them about it too. I try to teach them about the basics of finance and money and how it works, even though they're still really young," he said.

Millennials are often focused on wealth-building earlier in life, emphasizing long-term investments that go beyond stocks—like real estate and passive income—with goals of financial freedom and early retirement. In part, this focus reflects a desire to help set up the next generation for financial success sooner rather than later, building a foundation for uncertain economic conditions.

While millennials may have a more modern approach, boomers still hold most of the wealth. As a result, timing for wealth transfer is everything. Boomers are increasingly aware that their kids are juggling their own financial struggles, and many are looking for ways to transfer wealth more intentionally.

"How one plans for their future needs, opportunities, and outcomes is predicated on philosophy," Gregory said. "I choose a philosophy that centers on a vision of hopes and desires for not only myself but for my family."

Kuzia's strategy is focused on building wealth across multiple income streams—and he's even begun sharing lessons with his parents: "The tables have turned, and I give my dad financial advice now, which is kind of cool and full circle."

It's clear that both generations share one key goal: providing a solid financial foundation for their loved ones. Their methods may differ—as older generations emphasize time-tested lessons and younger generations introduce early investing strategies—but the shared goal is one of empowerment for the next generation.