[Podcast] The Great Wealth Transfer – Baby Boomers Passing the Torch to the Next Generation with Simon Kuestenmacher

Today, leading demographer Simon Kuestenmacher and I will explain why the 2030s is going to be an outstanding decade for property.

Now and then there is a significant strategic shift that creates a substantial property boom.

Today, you’ll hear why Simon believes the great wealth transfer of up to $6 trillion as the baby boomers die off will create an outstanding property and economic boom.

Today’s show is the third episode of my new weekly podcast Demographics Decoded with Simon Kuestenmacher.

Over the last four years, Simon Kuestenmacher has been one of the most popular regular guests on this podcast, and because we both believe the demographics are going to be one of the main drivers of our property markets, business, and economy moving forward, we are publishing a separate podcast that we’ve called Demographics Decoded where we’re going to unravel the trends that will shape the future of your investment decisions business strategies and organisational planning.

I’m running this episode show here on the Michael Yardney podcast to give you a taste of what’s ahead. However, please stop for a moment and look for Demographics Decoded on whichever podcast app you’re currently listening to this show on, and subscribe to that show as well. I will also leave a link in the show notes to make it easy.

How Intergenerational Wealth Will Reshape Australia

In this episode Simon and I discuss the transformative effects of the impending wealth transfer from Baby Boomers to younger generations. We discuss how this shift will influence Australia's property market, economy, and societal structures.

• The anticipated wealth transfer of $5 to $6 trillion from Baby Boomers to the next generation and its expected timing in the 2030s
• Living inheritances, the trend of transferring wealth while benefactors are still alive
  • Economic benefits of a living inheritance
• The impact of the "Bank of Mum and Dad" on housing markets
• The impact of Baby Boomers holding onto their homes longer, delaying property market availability
• The divide between asset-owning and non-asset-owning families
• Complexities of transferring significant wealth
  • Framing it as a loan or as a gift
  • The importance of professional advice
  • The need for open family discussions
• The social and consulting skills financial advisors need to navigate sensitive wealth transfer topics
• Societal implications of intergenerational wealth transfer
  • The potential exacerbation of housing inequality
• Potential policy responses such as inheritance and land taxes to address increasing inequality in housing
• Importance of proper estate planning and clear family communication to prevent legal disputes

By staying ahead of these trends, listeners can better navigate the evolving landscape and achieve their financial aspirations.

Links and Resources:

Subscribe to the Demographics Decoded Podcast on:

• Apple Podcasts:   https://podcasts.apple.com/au/podcast/demographics-decoded-unveiling-the-trends-shaping/id1755981675
• Spotify: https://open.spotify.com/show/6qsThQ6mIXK8RKWlhst1xK
• YouTube:  https://www.youtube.com/playlist?list=PLssKuseYAEYwHYfEI262DzEqNQjZKhykA

Michael Yardney

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Simon Kuestenmacher – Director, The Demographics Group

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Some of our favourite quotes from the show:

“But more than anything, boomers want to stay put. That's the main goal here, and so you go okay, cool, so you stay put. But so that means the family home only enters the housing market once the last parent dies, after decades in ownership.” - Simon Kuestenmacher

“Studies interestingly showed that in many families, the eldest daughter often takes charge of managing the finances after their parents pass away. That's something that surprised me.” - Michael Yardney

“A well-drafted will clearly outlining your wishes minimizes the ambiguity. It helps avoid costly and emotionally draining legal battles. And I think the other thing you've mentioned a couple of times is talking with your children about it, setting the expectations.” - Michael Yardney

Also, please subscribe to my new podcast Demographics Decoded with Simon Kuestenmacher – just look for Demographics Decoded wherever you are listening to this podcast and subscribe so each week we can unveil the trends shaping your future.

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