Women and the Great Wealth Transfer with Sharon Epps

FaithFi: Faith & Finance | Nov 18, 2024

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Show Notes

You’ve heard of the Great Wealth Transfer taking place as Baby Boomers pass away, but did you know that women will inherit the majority of those assets?

It’s true. The Great Wealth Transfer is really horizontal, with widows inheriting most private wealth before it’s passed on to the next generation. Sharon Epps joins us today to talk about how women should prepare.

Sharon Epps is the president of Kingdom Advisors, our parent organization. Kingdom Advisors is a group dedicated to training financial professionals to guide and advise you according to biblical principles.

Women as the Primary Inheritors

One surprising fact is that women will inherit the majority of this wealth. Since women typically outlive men by about six to seven years, nearly 70% will experience widowhood and manage their spouse’s share of assets. In addition to inheriting from their husbands, many women will also receive an inheritance from their parents, and, increasingly, they are generating their own income through employment. This convergence of income streams will place an estimated two-thirds of U.S. assets—around $30 trillion—under women’s control by 2030, according to McKinsey & Company.

The Heart of Generosity: Purpose, Passion, and Plan

The wealth transfer isn’t just about financial assets; it’s a significant opportunity for generosity. Three key factors inspire generosity: purpose, passion, and planning.

Purpose: A strong sense of purpose can motivate people to give more. Research from Women Doing Well revealed that women who score high on purpose tend to donate around 14% of their income, compared to 9% for those with lower purpose scores.
Passion: Passion for a cause often stems from personal experiences of pain or suffering. This deeply held belief leads people to make sacrificial giving decisions. When people align their hearts with God’s, they are inspired to give courageously and with conviction, connecting their generosity to meaningful experiences.
Planning: Effective financial planning is essential for generosity, especially for women who aspire to give more but may lack the structure to manage their finances for greater impact. Financial planning and passion must work hand-in-hand to create a lasting legacy of giving.

Building a Generous Legacy: Preparing for Wealth Responsibility

With the responsibility of managing inherited wealth, women must be equipped with spiritual foundations and financial wisdom. Three main influences support women’s generosity:

Understanding that God owns it all.
Personal spiritual disciplines like Bible study and prayer.
Receiving teaching on stewardship.

When women embrace these principles, they can approach wealth with a mindset of stewardship rather than ownership, seeing it as a resource to bless others.

Women and Collaborative Giving

Women often approach giving differently than men, preferring collaboration and community. Studies from the National Christian Foundation show that women are twice as likely to participate in collaborative giving, pooling resources with others to maximize their impact. Women seek transformational experiences rather than merely transactional ones, often using giving as a means to disciple their families and build stronger connections within their communities.For women looking to embrace generosity and connect with like-minded individuals, we recommend organizations such as Women Doing Well, Generous Giving, and the National Christian Foundation (NCF). These groups offer opportunities for women to strategize, collaborate, and grow in their giving journey.

Embracing Generosity as a Lasting Legacy

As the wealth transfer unfolds, the unique generosity of women presents an unparalleled chance to impact future generations. For those who steward this opportunity with purpose, passion, and a solid plan, the legacy of giving can become not only a financial blessing but a tool for discipleship and transformation.

Connecting with organizations and communities that support women’s giving can help women maximize this historic moment and courageously and convictionally live out the principles of generosity.

On Today’s Program, Rob Answers Listener Questions:

I'm 75, and my husband is 78. If he passes away, I'll lose about $4,000 per month in income. I have $2,800 from teacher retirement, $662 in social security, and $2,000 from a 403(b). I've saved $80,000 and can save an extra $4,000 monthly. I'm concerned about managing the $4,000 income drop and what to do with the $80,000 I've saved.
My wife and I own two homes—one is a rental property I moved out of in 2022. We're trying to determine the best time to sell both properties and how to maximize the capital gains exclusion, especially since we both had primary residences prior to getting married in 2022.

Resources Mentioned:

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