The impending “Great Wealth Transfer” from boomers to younger generations will first pass through boomer wives due to the fact that women tend to outlive men. A recent Ellevest survey reveals that 45% of women are either expecting or have already received a significant financial windfall, with the typical amount being around $300,000. The way these women plan to utilize this money varies across different generations, showcasing their unique financial goals and strategies.
The majority of boomer women (40%) plan to invest their windfall, aiming to continue growing their assets and earning income to support their financial objectives. However, the decision on how to invest depends on individual circumstances, making it crucial to consult with a financial advisor to create a tailored investment portfolio aligned with personal goals. For those considering putting money in the bank (32%), it is recommended to build an emergency fund first before exploring more profitable investment opportunities to combat the effects of inflation on cash over time.
Paying off debt (excluding student loans) was another popular option among boomer women, along with traveling, buying a home, and investing for a positive impact. Each of these choices has its pros and cons, highlighting the importance of aligning financial decisions with long-term goals and values. Working with a mission-aligned financial advisor can help individuals invest in ways that support causes they care about while maximizing the positive impact of their financial windfall.
