Redefining What It Means to Invest and Give

A historic wealth transition is underway. In the United States alone, an estimated $90 trillion is expected to move from baby boomers to younger generations. This will occur over the next two decades. Globally, that number rises well beyond $100 trillion. But what matters most isn’t just how much money is changing hands—it’s who’s receiving it, and how they plan to use it. Strategic philanthropy is at the heart of how younger investors are reshaping both how they give and how they grow their wealth.

The next generation of investors—Gen X, millennials, and Gen Z—isn’t just inheriting wealth. They’re redefining what wealth means, and how it should be directed. For today’s advisors and wealth firms, this presents a pivotal opportunity: growth powered by values-aligned capital and strategic giving.

Wealthier, Younger, and More Intentional

Contrary to outdated assumptions, many inheritors are entering financial maturity with significant assets, digital fluency, and a mission-aligned mindset. Fueled by tech-driven innovation, entrepreneurship, and early access to capital, a new investor profile is emerging: young, wealthy, and purposeful.

According to Bank of America’s 2023 Private Bank Study, 75% of investors under 43 say it’s essential that their investments align with their personal values and social impact priorities. This signals a generational shift from wealth as accumulation to wealth as expression. It’s also a catalyst for lasting impact and multigenerational growth.

Giving is no longer an afterthought for younger investors. It’s a core part of how they manage money. Millennials are more likely than any previous generation to integrate charitable giving into their lifetime financial plan, not just as part of estate planning.

A recent Fidelity Charitable study found that 61% of millennials give regularly to causes they care about. That compares to just 35% of baby boomers. These investors view philanthropy as a living, participatory experience, not just a tax event.

They expect their capital to work on multiple levels—delivering financial returns, societal returns, and personal meaning. For advisors and firms, engaging clients through philanthropy is not just good stewardship—it’s a proven driver of organic growth, relationship depth, and asset retention.

From Wealth Transfer to Wealth Transition

Insights from NextChapter Innovation reveal a more nuanced view of the wealth transition. The most pivotal financial decisions are often triggered by moments that matter—death, divorce, caregiving, solo aging, or a major health event.

These emotionally charged inflection points shift the center of financial influence within families. And yet, most firms still focus their attention on the primary wealth holder while ignoring the very people who will ultimately control the assets.

Next Gen investors are ready now. The question is whether the industry is listening.

Despite the scale of the wealth transition, many younger investors still operate outside of traditional advice channels:

• Only 1 in 3 Gen Xers uses a financial advisor
• Many see retirement plan providers as their primary financial contact
• 76% of Gen Z and 86% of Millennials prefer digital-first financial experiences over in-person meetings

At the same time, 60% of consumers say they sought out an advisor because of a life event—not a product, portfolio, or pitch. To stay relevant and competitive, firms must shift from transactional offerings to emotionally attuned, values-aligned experiences—experiences that drive both purpose and growth.

Tools to Match the Mindset

Donor-Advised Funds (DAFs), once seen as a strategy reserved for the ultra-wealthy, are now a preferred solution for intentional generosity—particularly among younger investors who want more control, flexibility, and visibility into their giving.

Platforms like Give help make DAFs more intuitive, more accessible, and more integrated into everyday wealth planning. These tools are not just about tax efficiency. They represent a modern interface between capital and conscience and a key lever for firms seeking to deepen relationships and expand assets under management.

We are entering a new era of wealth—one defined not just by net worth, but by net impact.

This new generation is ready to give more than just assets. They want to give time, insight, and energy toward shaping a better future. They expect financial partners to help them activate that vision with purpose and precision.

And as trillions move into new hands, the leaders in wealth will be those who understand: it’s not just about managing money—it’s about honoring meaning, engaging heirs, and using philanthropy as a pathway to sustainable growth.