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3 standout trends from the 2024 Study of Wealthy Americans

See how generational dynamics and the impending wealth transfer are influencing financial strategies.

As the first babies of Gen X approach their 60^th birthdays, a massive generational transfer of wealth has already begun. With American wealth increasingly under “new management,” our 2024 Study of Wealthy Americans reveals how viewpoints differ across generations and across wealth journey, meaning the life path that brought people to wealth. This year, the study also dove into new questions around emotions related to wealth decisions. This research represents American adults with $3 million or more in investable assets.

“We’re living through a period of great social, economic and technological change alongside the greatest generational transfer of wealth in history. This study shows that wealthy Americans are focused on diversification, long-term goals and making a lasting impact with their wealth.”
— Katy Knox President of Bank of America Private Bank

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Read our full 2024 Bank of America Private Bank Study of Wealthy Americans for a more in-depth look at these trends.

Key trends from the 2024 Study of Wealthy Americans

Each of the following sections are expanded/contracted areas (+/-):

Older and younger generations are surprisingly far apart on many investment issues, which could change allocation trends as wealth transfers to younger Americans. Comparing Gen Z and millennials to Gen X, baby boomers and seniors, views diverge on outlooks and growth opportunities.

Younger wealthy people are twice as optimistic as older generations about the state of the U.S. economy. They’re even more divided on the outlook for the global economy. What do older and younger wealthy people agree on? They give similar ratings to their personal financial security, and they’re both positive about the outlook for the stock market in the year ahead.

Older and younger are divided on many of the big-picture questions

% who say ‘very good’ or ‘excellent’

75% of respondents aged 21 to 43 and 78% aged 44 and older say their personal financial security is very good or excellent. 51% of respondents aged 21 to 43 but only 24% aged 44 and older say the U.S. economy is very good or excellent. 46% of respondents aged 21 to 43 but only 6% aged 44 and older say the global economy is very good or excellent.

Younger and older also hold different opinions about investments and the opportunity set in today’s environment. While the young give top rankings to real estate, cryptocurrencies and private equity, the older set favors domestic equities, real estate and emerging equities.

Differing ranks for today’s growth opportunities

Top three rankings for growth opportunities

Note: Totals do not sum to 100% because just the top three of 12 categories are shown for each age group.

Of respondents aged 21 to 43, 31% say real estate investments are the top growth opportunity, followed by 28% who favor cryptocurrencies/digital assets and 26% who prefer private equity. Of respondents aged 44 and older, 41% say domestic equities are the top growth opportunity, followed by 32% who favor real estate investments and 25% who prefer emerging market equities.

This split is also reflected in their differing portfolio composition. While older investors rely most on traditional stocks and bonds, younger investors hold a more evenly spread mix of asset classes – including an average of 31% in alts and crypto. The tilt towards crypto and alts comes at the expense of traditional stock market exposure, for younger wealthy investors. The majority of the younger group says they plan to add more alts in the near future, while just a quarter of older wealthy plan to add more alts.

Younger allocate more evenly across asset classes

Average portfolio allocations

Younger and older wealthy Americans differ in their average portfolio allocations. Those aged 21 to 43 invest 28% in stocks, 19% in bonds, 19% in cash, 17% in alternatives, 14% in crypto and 5% in other. Those aged 44 and older invest 55% in stocks, 19% in bonds, 15% in cash, 5% in alternatives, 1% in crypto and 5% in other.

Older and younger do agree on a few things about investments. They all say they give consideration to capital gains taxes, dividends and fees when considering investment decisions. Younger wealthy people are twice as likely to say they consider the intended use of proceeds, such as fulfilling a philanthropic commitment, reallocating assets or pursuing specific financial goals. They’re also much more inclined to consider a company’s ESG track record and even the sentimental value of an investment.

Sentimental value of an investment ranks 3x higher for younger wealthy

Investment decision considerations

When making investment decisions, 92% of respondents aged 21 to 43 consider capital gains tax, 89% consider dividends, 90% consider transaction fees/expense ratios, 88% consider the intended use of the proceeds, 82% consider a company's ESG track record, and 86% consider the sentimental value of the investment. Of respondents aged 44 and older, 83%consider capital gains tax, 81% consider dividends, 66% consider transaction fees/expense ratios, 43% consider the intended use of the proceeds, 35% consider a company's ESG track record, and 26% consider the sentimental value of the investment.

Wealth perspectives are not just shaped by age; life journey has a strong influence on certain matters. In this context, we refer to life journey to characterize wealthy people’s upbringing and whether their present wealth includes inheritance.

Legacy-wealth people put more priority on inheritance

% who agree that it’s important to leave money to children/heirs

72% of legacy-wealth respondents - those with an upper-class upbringing and an inheritance - agree it's important to leave money to children/heirs. 68% of head start respondents - those with an upper-class upbringing and no inheritance, or a middle-class upbringing with some inheritance - agree, as do 53% of self-made respondents - those with a middle-class or poor upbringing and no inheritance.

Other differences emerge when life-journey groups rank their primary goal for wealth. Legacy-wealth people put less emphasis on maintaining their lifestyle, and slightly more emphasis on leaving a legacy or charitable endeavors. Self-made wealthy people are more likely to prioritize spending without leaving much behind, and they show relatively less interest in preserving wealth for heirs.

More self-made people favor spending without leaving much behind

Primary goal for wealth

42% of legacy-wealth, 43% of head start and 30% of self-made respondents say their primary goal for wealth is preserving wealth for children, heirs and future generations. 24% of legacy-wealth, 34% of head start and 34% of self-made respondents say their primary goal for wealth is maintaining their lifestyle. 9% of legacy-wealth, 5% of head start and 15% of self-made respondents say their primary goal for wealth is spending without leaving much behind. 12% of legacy-wealth, 7% of head start and 10% of self-made respondents say their primary goal for wealth is leaving behind a positive legacy. 11% of legacy-wealth, 8% of head start and 8% of self-made respondents say their primary goal for wealth is charitable endeavors.

Nine in 10 wealthy people made charitable donations in the past year, and life journey seems to influence the ways that people participate in philanthropy. Self-made wealthy people are more inclined toward direct giving, compared to peers. Legacy-wealth people do a lot of direct giving but also commonly use donor-advised funds and charitable trusts to make donations. They are more involved in fundraising and mentorship in their philanthropic work. These legacy-wealth trends tend to track with younger-people trends, as three-quarters of younger people in this study represent legacy wealth.

Younger wealthy mainly reflect legacy wealth

% of respondents by wealthy journey

Younger respondents - Gen Z and millennials - reflect 72% legacy wealth, 24% head start and 4% self-made people. Older respondents - Gen X, boomers and the Silent Generation - reflect 26% legacy wealth, 45% head start and 28% self-made people.

However, life journey seems to have little effect on some arenas; all groups show similar participation in things like volunteering and sitting on a board.

Life journey influences philanthropic tendencies

Philanthropic involvement

74% of legacy-wealth, 89% of head start and 93% of self-made respondents are involved in direct giving. 39% of legacy-wealth, 42% of head start and 45% of self-made respondents are involved in volunteering. 21% of legacy-wealth, 13% of head start and 13% of self-made respondents are involved in fundraising. 12% of legacy-wealth, 8% of head start and 13% of self-made respondents sit on the board. 19% of legacy-wealth, 7% of head start and 6% of self-made respondents use charitable trusts. 14% of legacy-wealth, 7% of head start and 9% of self-made respondents use donor-advised funds. 12% of legacy-wealth, 6% of head start and 6% of self-made respondents are involved in mentorship. 11% of legacy-wealth, 4% of head start and 2% of self-made respondents are involved in a family foundation.

Inheritance can come with stress and strain, especially for families from legacy-wealth backgrounds and those in the highest wealth tiers. Nearly half of those in the legacy wealth cohort say they have experienced or expect to experience strain related to inheritance. Among the youngest of that group, two-thirds see strain.

Many have experienced strain over inheritance

% who have experienced strain over inheritance

For legacy-wealth respondents, 14% say they're currently experiencing strain over inheritance, 21% say they have experienced it in the past, and 10% say no, but they anticipate it will happen. For head start respondents, 7% say they're currently experiencing strain over inheritance, 9% say they have experienced it in the past, and 9% say no, but they anticipate it will happen. For self-made respondents, 1% say they're currently experiencing strain over inheritance, 8% say they have experienced it in the past, and 7% say no, but they anticipate it will happen.

% who have received an inheritance

100% of legacy-wealth, 83% of head start and 0% of self-made respondents say they have received some inheritance

Interpersonal family dynamics are the most frequent culprit for inheritance-related strain, particularly cited by older wealthy people. The unequal distribution of assets is another common cause. Governance issues, including lack of instructions, communication and trust, are also prevalent, especially for younger wealthy people. Hard assets like jewelry and heirlooms can factor into these scenarios – yet they’re only included in estate planning about half of the time.

Interpersonal family dynamics are a top driver of strain

Reasons for strain

Reasons for strain. 41% of younger, 65% of older and 59% of total respondents say the reason is interpersonal family dynamics. 29% of younger, 41% of older and 38% of total respondents say it's the unequal distribution of assets. 36% of younger, 20% of older and 25% of total respondents say it's a lack of clear instructions and documentation. 32% of younger, 22% of older and 24% of total respondents say it's a lack of communication. 33% of younger, 12% of older and 18% of total respondents say it's a lack of trust/transparency in the executor/trustee.

Almost half of wealthy people say they have taken on the role of trustee or executor for someone, a job that proves challenging for many. A third report negative or neutral feelings about the responsibility. Younger people most commonly say they felt overwhelmed by the role, while older people more often felt burdened by the job.

Negative feelings can accompany trustee/executor role

Main feelings when named trustee/executor

When named trustee/executor, 67% of respondents aged 21 to 43 say they had positive feelings about their role, 12% had neutral feelings and 23% had negative feelings. 27% felt burdened, 65% felt overwhelmed and 5% felt annoyed. 66% of respondents aged 44 and older say they had positive feelings about their role, 9% had neutral feelings and 25% had negative feelings. 57% felt burdened, 35% felt overwhelmed and 8% felt annoyed.

Amid wealth transfer, perspectives shape goals and decisions

As wealth shifts toward the younger generations, these perspective differences could drive new patterns and trends in financial decision-making. The very human experiences that go into shaping these viewpoints are valuable to understand, both for the investors themselves and for the advisors looking to support them with guidance.

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A profile of wealth in America

This research was conducted by Bank of America Private Bank in partnership with research firm Escalent. The findings reflect the responses of 1,007 U.S. individuals aged 21 or older, with investable assets over $3 million. It was designed to be a statistically representative sample of the population in the U.S. that meets these two criteria. The survey was fielded in January and February of 2024.

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