Latest / The Curve / Why Women Will Inherit Most of the $124 Trillion Wealth Transfer.

Transcript

Why Women Will Inherit Most of the $124 Trillion Wealth Transfer. · The Curve

0:00
Coming up in today's episode, we talk all things Wimbledon.
0:04
Did you know the Wimbledon winners take home £3 million in prize money,
0:10
and yet a player ranked 150th can't even afford their own lunch?
0:15
We're going to be talking about the wild economics of tennis.
0:17
You probably hear the word tennis or Wimbledon and think money, money, money.
0:22
It is very lucrative at the top, but it's also super brutal at the bottom for some players.
0:26
so we're going to talk about lots of different angles to do with Wimbledon and money and actually
0:31
how some tickets are now genuinely considered investments.
0:35
$124 trillion is about to change
0:39
hands and 70% of that is going to the hands of women.
0:43
We're going to dive into how, why and the
0:44
fact that nobody saw it coming.
0:46
This is The Curve Weekly where we read the finance news so that you
0:49
don't have to.
0:49
I'm Vic Harris, a finance professional who has had a career making money for other people
0:53
And I'm Sophie Hallwright, ex-TV radio producer, who was really exhausted with not understanding anything to do with money or the economy.
0:59
So we started this podcast.
1:00
But before we dive into the headlines, here's a word from today's sponsor.
1:08
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1:22
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1:26
Welcome everyone, this is our first Wednesday episode
1:29
I know
1:30
Wow
1:32
It's one of those things that we've been talking about, I would say, behind the scenes, off mic
1:36
And also publicly for like an embarrassingly long time
1:39
So I hope people are listening
1:41
We did a vote ages ago when we first talked about the idea of doing two Curve Weeklys
1:48
and we said, what would you prefer, Monday, Wednesday, Thursday?
1:51
There were so many different options because we've now done a podcast,
1:54
did you know, for six years.
1:57
Are we still talking?
1:58
I don't know, but we've released one on Monday and Thursday
2:02
consistently for three and a half years.
2:04
Wow.
2:05
So swapping is high stakes.
2:08
Oh, my gosh, people are going to jump in on Thursday.
2:10
I know.
2:10
I know it's problematic.
2:12
Shit.
2:12
So this is a massive PSA.
2:14
So Monday is going to be our Curve Weekly.
2:17
Wednesdays is going to be the Curve Weekly.
2:19
And now we've kicked out our Raising the Curve episodes that used to be on a Thursday to Friday.
2:25
Do we put one out on Thursday saying, hey, guys, it went out yesterday?
2:28
Yeah, yeah.
2:29
Just for all those dedicated Thursday, you know?
2:31
Yeah, that's actually a really good idea.
2:32
Okay.
2:32
Love that.
2:33
God.
2:34
Genius.
2:35
Genius.
2:35
That's actually a really good idea.
2:36
Yeah.
2:36
So the reason that we are upping, I say upping the stakes, upping the ante.
2:41
there is it's so funny when we were first planning the Curve Weekly many many years ago
2:47
back when we were little babies we promised that the episodes would be 10 minutes long
2:52
yes I do remember that yeah she was mainly because you were like I cannot do a weekly podcast there's
2:58
no way and I was like you wanted to do daily I remember and I was like is she gone bananas I was
3:04
just like how do I tell so this is the most ridiculous idea ever yeah well anyway so we got
3:10
twinkly the in-between was that we we said that we would do 10 minute episodes they'd be quick
3:15
they'd be snapping the problem was we've opened a bit of a can of worms because there is a reason
3:21
that most men are obsessed with reading the FT and it's because there's so much that happens
3:25
in the world of the economy I was trying to explain it to someone the other day I can't
3:29
remember who it was but I could just see her eyes glazing glazing over when I was saying
3:34
that the podcast is about the economy investing stock market she was like and I was like no I
3:39
I promise it's interesting and then do you know how I pitched it I said I like to think of it as
3:45
almost like the real housewives of the economy like for me it's almost a tv show I get quite
3:49
addicted to knowing like who's done what what's happening here nice suing someone for 10 billion
3:54
dollars um and then she was like okay when you say it like that I'm kind of into it it's funny
3:59
even at events and people like will put their hand up and go um so like where can i get
4:03
information on you know finance and like investing news and i'm like our podcast i know you know it's
4:10
quite like yeah it's the best source i mean i know i'm a bias but it is the best source of
4:15
information we've been building a platform behind the scenes like to make sure that we're as
4:19
research as possible to you know like subscribe to every platform that exists to make sure we're
4:23
reading all the stories making sure that what you get delivered in the curve weekly is the most
4:28
important the most interesting and actually relevant to our audience because there's
4:31
so much stuff that gets reported in places like the ft where i'm just like falling asleep listening
4:36
to it or reading it i reckon i could make any headline interesting for our audience
4:40
guys i've had an idea let's totally pitch that we'll tell her the headline sorry i'm talking
4:46
to the producers we'll put we'll read the headline and you have to rework it into something that
4:49
sounds exciting interest rates bonds give me the most boring thing i reckon i could find i actually
4:54
agree with you I totally agree um that's actually such a fun idea I love that so anyway we've been
4:59
looking to make sure that we're getting all of the news from all the right places and actually
5:03
it's quite hard to find any good platforms like some are really intense looking at like
5:09
I don't know investment ideas some are really intensely looking at interest rates there's not
5:13
really a lot that then also includes things that are interesting like some of the stuff we'll talk
5:16
about today um so you know you can trust us for your finance news we look high and low we really
5:23
West to east, not to south.
5:27
Yes, we're absolutely combing the news that will be important for your wallet and your
5:31
investment.
5:32
So today, we're very excited, our first ever Wednesday episode.
5:36
And before we get into it, Vic, we have some very exciting news.
5:41
So this is, I actually, I'm not sure if we're being punked or pranked because this feels
5:45
like it's too good to be true, but apparently we've made the shortlist for the British Podcast
5:50
Awards.
5:51
Isn't that crazy?
5:53
Nice.
5:53
No, I need a better reaction than that.
5:55
This is huge.
5:56
That's huge.
5:56
Yeah.
5:57
Love that.
5:58
Woo!
6:00
No, but like for context, some of these podcasts are like, yeah, okay, neither of us, sorry
6:04
for anyone that's not watching, we don't have bras on today.
6:07
And all of a sudden I felt very, it was very obvious.
6:09
I don't know why.
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Vic just did like a fist pump and there was a lot of movement.
6:15
This is very off brand for me, but yeah.
6:17
Yeah, you don't normally not wear a bra.
6:18
No.
6:18
Suits you.
6:19
Anyway, sorry, moving on.
6:20
basically we are going to be able to vote for ourselves and we would really love for you to
6:25
vote for us too we'll be voting for ourselves multiple times yeah but even being a finalist
6:29
is kind of amazing so if you see us um flogging the fact that we did make the um british podcast
6:35
awards whether it's on our newsletter or socials would highly appreciate a vote because this is
6:40
huge that would be so amazing yeah if we won something we originated podcast going global
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Oh, God, it would be so good.
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Now, British, Aussie, New Zealand, yeah.
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Oh, watch us go.
6:52
Okay, there we go.
6:52
Global domination.
6:54
What is that?
6:54
Oh, my God, bring it on?
6:57
You know?
6:57
Oh, my God, maybe we have to do a dance to get people to vote for us.
7:00
It's the bring it on.
7:02
Prepare for global domination.
7:04
Oh, it's Spirit Fingers guy.
7:05
Oh, my God.
7:06
So when I said it, I was like, oh, my God, that's bringing like hallmarks of, yeah.
7:09
Gosh.
7:10
Sorry, wow.
7:10
Okay, wow.
7:11
Tangent.
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We'll brainstorm how we'll get your votes, but if you could all just vote when you see it,
7:14
that would be great.
7:15
Yeah.
7:16
Did you want to do the...
7:17
Yes, so talking about combing the news, we didn't really have to comb too far for this one.
7:22
No.
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We combed our backyard.
7:24
Yeah.
7:25
I mean, Vic was on the ground.
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She was a live reporter.
7:28
Would you put this through as tax?
7:30
Of course.
7:31
Like a tax back?
7:31
Of course.
7:32
How much was the ticket?
7:33
Tax write-off, yeah.
7:34
I must have.
7:34
It was actually only £70 because I got it in the ballot.
7:37
Oh, amazing.
7:37
Yeah.
7:38
So I'm talking about Wimbledon, by the way.
7:40
So for anyone that did miss her stunning outfit to Wimbledon, it was very cheap.
7:46
I love
7:47
no sorry
7:48
quickly
7:48
I love that you wore
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the shoes
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those shoes
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the brown ones
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this is a good example
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of you can buy well
7:55
and wear for a long time
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I bought those
7:57
like years ago
7:58
and never wore them
8:00
and now
8:01
now I like them
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and I wear them all the time
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but I love that
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they've lasted
8:04
I would say 8 years
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perhaps
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yeah
8:06
probably
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and they're finally getting
8:08
a tour
8:09
anyway
8:09
anyway
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yes
8:11
I got my ticket in the ballot
8:13
I've put my name in the ballot
8:14
for the last 7 years
8:15
across like three emails and yeah it's so hard to get tickets to Wimbledon and got pulled out of the
8:20
ballot and my sister was visiting and I was like it's a sign um so yeah went to Wimbledon and I was
8:25
like this is I see some financial angle here yeah so yes so okay I am not going to pretend to know
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a huge amount about Wimbledon other than tennis players very fit very hot very hot paid a lot of
8:43
money yes the events and the games feel like influencer events and lastly it's in london
8:52
look that's i would say that is the extent of my Wimbledon knowledge yes okay yes it is one of the
8:56
most quintessential british sporting events it is one of the open so you've got the french open us
9:03
open australian open your Wimbledon you know like it is one of the biggest tennis tournaments it's
9:08
got this weird structure where it is like it's so hard to get a ticket but then they provide tickets
9:13
that you can queue up for and you can get like ground passes so it's like it makes like some
9:19
tickets are up to like nearly 400 000 pounds are you serious yes yeah and then you can where are
9:24
you on the court like are you the ball i'm like what is happening are you are you you're probably
9:31
sitting next to like princess katherine and and there's so many angles to the story and i'm going
9:35
to go through them but yes one of them is the popularity of not only live sporting events or
9:41
you know live experiences whether it be concerts sports you know people are craving that post
9:46
covid uh people are also spending money on that because it's uh yes it's still expensive
9:55
and it's entertainment but it's not expensive as a holiday and things like that now you know
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and i'm not meaning wimbledon but like lots of other kind of uh sporting and entertainment events
10:03
also gen z and the involvement like you said with influences it's made it more uh what's the
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word cool more uh they're reaching a younger audience that is now interested in sport because
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i've also noticed this with formula one they've just so many influences to go yeah it's just
10:23
everywhere but i must admit it's working it's like i know the formula one drivers and do you
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lando norris no should i yeah lando norris norris um belgian racing driver oh god he's sexy yeah
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Oh my God.
10:40
Yeah.
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And then I was like, I was like, oh, to Flower Man.
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I was like, oh, and you know, I was like, she broke up with one of the Formula One players
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and she's now dating the number one tennis, you know, and he's like, how do you, why do
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you care?
10:53
And how do you know this?
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And then Taylor Fritz was playing Wimbledon.
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I was like, he recently broke up with his girlfriend, you know.
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Taylor Fritz.
10:59
Oh my God.
10:59
I feel really out of the loop.
11:02
This is amazing.
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Oh, he's also hot.
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God.
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it's so unfair that these people are the most talented fit people in the world do you remember
11:10
when i did the coin toss oh my god i was kind of embarrassed i know i don't know why i did it
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so for context for anyone who hasn't heard this story uh we like we got invited to the tennis
11:26
tournament in auckland it's not a it's not like an open it's not a big like but it is the biggest
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tournament in New Zealand and I was doing a talk for uh one of the sponsors and then like a corporate
11:37
talk to their clients about investing and afterwards they were like hey uh do you want
11:42
to do the coin toss to see who starts playing and I was like on the on the court and they're like
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yeah I was like oh amazing little did I know this is usually reserved for like young kids that are
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like got their uh they're the up-and-coming tennis players and that's their like uh you know
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Basically it's children.
11:59
It's a majority, I would say, under the age of seven or eight, right?
12:03
And I didn't know about this, I would like to say.
12:05
I feel like perhaps I would have been like, what are you doing?
12:08
And then I saw it on television and there's Vic kind of like scurrying across.
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In my corporate outfit.
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And it's like, and I was like, no PR is bad PR, no PR is bad PR.
12:18
And then they announced, they're like, I'm doing the coin toss today.
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It's Victoria Harris from financial education platform The Curve.
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And I was like, hey, well, that's, you know, on live television in New Zealand, I was like, at least.
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Nice, nice.
12:31
Yeah, yeah, yeah.
12:31
Who needs a pair?
12:32
Yeah.
12:33
Anyway, so.
12:34
Anyway, sorry, okay, wait.
12:35
Back to this.
12:36
Yes.
12:36
So.
12:37
So, first thing we're going to discuss, the financial angle of Wimbledon is that the most expensive ticket is nearly £400,000.
12:46
And how that is actually an investment.
12:48
Nah.
12:50
What?
12:50
Because it's an investment.
12:51
I don't know what that noise was.
12:53
Sorry.
12:53
Are you disagreeing with me?
12:55
No, I was like, what do you mean?
12:56
The only thing I can think why that would be an investment is that you get to meet someone who then, I don't know, supports your business venture or something.
13:04
You're like pitching for people.
13:06
Yeah.
13:06
Is it like you're investing in your social circle?
13:09
Is that where you're going with it?
13:10
So a Centre Court ticket.
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So the most like the creme de la creme ticket is selling for three hundred eighty thousand.
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So nearly four hundred thousand pounds to get a Centre Court ticket, which is absolutely crazy.
13:22
And that's up from $116,000 two years ago.
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Is that because the All England Lawn Tennis Hub,
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is it because they have access to sell those best tickets
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so they can kind of decide however much they want to price them at?
13:39
It's kind of, they set up a structure essentially where,
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and I'm not going to get into too much detail,
13:46
but they needed debt to fund expansion of Wimbledon.
13:53
And in doing that, people that lent them money
13:56
got centre court tickets every year for five years.
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Now, those people have some of them.
14:03
There was only 2,500 tickets that they did that as part of that deal.
14:07
And some of those people have onsold those tickets
14:09
because maybe they don't want to go every year for five years.
14:12
And they're like, look, there's actually a lot of demand.
14:13
So they've onsold those tickets.
14:15
I mean, it's so clever.
14:16
And they've gone up, yeah, from $116,000 to nearly $400,000 in two years.
14:21
That is such a good investment.
14:22
If you had those tickets for $116,000 and now they're worth $400,000 and you sold that,
14:29
that's 230% return that you've made.
14:32
And because it's in the form of a ticket, you don't have to pay capital gains on that.
14:35
Yes, it's an investment.
14:37
It's like holding Taylor Swift tickets and say you got, I don't know,
14:42
tickets to her concert every year for the next five years and then by the end of or or throughout
14:48
that period she got super super popular you're like actually I don't want to sit on those tickets
14:52
anymore I'm going to sell them it's so clever from them but the thing that I'm I feel a bit like oh
14:57
I don't know is it just like because we've spoken so much on this podcast about whether or not it's
15:02
okay to buy a ticket say for Taylor Swift for 100 pounds and then sell it for 700 it's kind of shit
15:07
because it means that the main people who want to see her concert can't
15:12
because they're priced out.
15:13
Is there the same argument with this?
15:15
Or do you think because there's so many other tiers of tickets,
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it's kind of like, well, this is an investment,
15:18
but you can also get tickets for lots of different prices.
15:21
And the key thing with Wimbledon is they do make it,
15:23
they have these ground passes, which anyone can get, you can queue up for.
15:27
So they do make it like, yes, there's extreme tickets and premium seats,
15:32
but there's also ground passes that you can get for like £30, essentially.
15:37
it's so clever imagine if they want it to be like for the people in like a british event and like
15:42
yeah so i quite like it they've got like these two extremes so like at what point does that become
15:46
30 pounds and like a million pounds you know like it will if the demand keeps going up but also
15:53
the other thing is that is the price discrepancy that the players have in these in these tournaments
16:00
it's outrageous do you mean in terms of how much they earn how much they earn like this is so sad
16:05
and it's really interesting.
16:07
I mean, your boyfriend obviously works in sports,
16:09
so he sees this a lot, but particularly with tennis players,
16:13
I mean, I don't know if you have any stats around some people
16:17
who are playing in Wimbledon, but I imagine that there's probably
16:19
players who are earning or, like, basically can't afford their life at all,
16:24
but they're still playing in one of the biggest tournaments in the world.
16:29
A player, like, say, in the top 100 in the world, like,
16:33
they can earn you know really really high annual salaries including like prize money etc but in
16:42
order to stay at the top you have to actually spend a lot on having the best coaches the best
16:48
physio you know travel you have a team all of that so it's actually like there's very thin margins
16:56
in what you're earning in tennis in particular.
17:00
And then also there was a story that I saw that this poor player was,
17:06
like being in the top 100 in the world is like amazing,
17:08
but this one player was like on $20,000 in debt
17:13
just because he had to pay for his own hotel and food.
17:16
What number was he in the?
17:18
I don't remember, but he was outside the top 100.
17:20
But probably still pretty high, right?
17:22
Totally.
17:22
And it's so hard because it's like you don't, if you don't have the right support or you can't afford, and I guess it's just like everything in the world, right?
17:31
You know, if you can afford the best tutors or if you can afford the best education, you know, then you just.
17:38
You have a leg up to win and do better in a tournament.
17:41
It's really sad that there's not, I guess, support for those kind of lower, all those players outside the top 100 that are just like losing, losing money.
17:50
But have you watched the movie Wimbledon?
17:53
No, I haven't seen it.
17:53
With Kirsten Dunst.
17:55
No, I've seen the Zendaya one.
17:57
Oh, yeah.
17:59
Which I loved.
17:59
And it highlights exactly this.
18:01
There's this guy that's a wild card.
18:04
He gets drawn to go to Wimbledon and he is literally like, you know,
18:07
in the shittiest hotel paying for everything himself.
18:10
And whereas you've got these like super, yeah, super successful top players.
18:15
Well, she's a top player.
18:17
This is kind of like the match point with Zendaya as well.
18:20
Yeah, yeah, yeah.
18:21
There's that guy who's like sleeping in the car and eating the exact food and he then tries to go to this tournament.
18:26
But yes, the challenges or challenges is the same.
18:29
Oh, Matt Twain just made up a film name.
18:31
Cool.
18:34
Okay, so that is like not an exaggeration.
18:38
It's very much how it works.
18:40
It's so weird because I look at something like, you know, SailGP, which is a new kind of almost thread in sailing.
18:48
And you look at it and you have to have so much wealth to go to them, to compete.
18:53
But actually, I never really realized that there was so many industries within sport.
18:58
It's not just something like sailing.
19:00
Think about it, like skiing, tennis.
19:03
There's so many probably incredible players or people who would be incredible at a sport,
19:09
but they just don't have the means to be able to get them there.
19:12
There's a lot of investment going into the premiumization of sport right now.
19:17
the luxury side of it.
19:19
We're seeing it a lot with Wimbledon.
19:21
We've seen it a lot with tennis
19:24
and you're right, sailing.
19:27
A lot of sponsors are spending a lot on hospitality and really
19:32
catering to the wealthy.
19:33
And it is because there is such an increased demand in, like I was saying
19:37
before, going to and having these experiences.
19:41
And I think sport and entertainment and live
19:44
events and everything like all of that wrapped into one is such an incredible investing trend
19:49
that people are craving connection they're craving being part of like something bigger
19:55
like sport like honestly I don't know if this is being in London or if it's
19:59
and just this trend that I'm seeing of people wanting to get behind something but we had like
20:05
the champions there we got the FIFA World Cup on at the moment I just feel like there's always
20:08
something and I'm rallying behind more sports than I ever thought I was I mean I'm in North
20:15
London and Arsenal is the team that everyone sports it is so cute people were like this
20:22
one-year-olds wandering around their little Arsenal t-shirts everyone's in red people are
20:25
yelling at each other in this really cute way they've got like flares going I mean it is I
20:30
don't think I've ever felt that kind of intensity around sport and team camaraderie and togetherness
20:35
See, even last night, I didn't realise there was an England game on.
20:39
And our neighbours were just, like, absolutely yelling and making all this noise.
20:42
I was like, God, they're annoying.
20:43
What are they doing?
20:44
And then I woke up and was like, oh, it was an England game.
20:47
Like, that makes sense.
20:47
But even also all the artists that are touring.
20:50
And, like, they're touring more.
20:52
And they're touring in more countries.
20:55
Oh, so you mean beyond just sport.
20:56
It's just in general.
20:57
People just want to feel things and experience things.
21:01
And, you know, we missed that for three years.
21:04
and now we're catching up but we're also there's this whole trend of of yes social media wanting
21:11
to be a part of it wanting to be there wanting to talk about it and yeah tennis is also chasing
21:16
the next generation you've seen a lot of uh wags i don't know call them that i don't know um you've
21:23
seen a lot of wives and girlfriends that you know are making the scene bringing the fashion side to
21:29
wimbledon into tennis and to f1 you know highlighting that and and then there's there's
21:34
sponsors that play into that and they're having activation so it's like it's crazy what we're
21:39
seeing and like the that's all because yeah there's like a premiumization to it and people
21:44
are genuinely leaning into it yeah i'm wanting to attend these events there's also netflix shows
21:50
and all sorts of media and stories that are being kind of becoming the groundswell around things
21:55
like formula one so then you knowing about who's dating who and who wore this and whatever it's
21:59
like that's appealing to you yeah maybe not so much for some men but there's different elements
22:05
that I think they're trying to tap into so it's not just the traditional audiences that are
22:09
interested in sport particularly I think also one thing to highlight is the interest in women's
22:15
sport as well that you know yes there's a big growing interest in in sport and entertainment
22:22
but just in sport in general but within that the growth in women's sport and the interest in women's
22:29
sport is completely outpaced the overall sport interest and the women's tennis association
22:37
tiktok went from like non-existent two years ago to now of nearly a million thought nearly a billion
22:46
followers whoa like it's it's crazy and that's from a younger generation that's from
22:51
more interest that that leads to more sponsors uh higher ticket prices just everything i think
22:58
overall this is amazing news for the world for players for sport for everything i think that
23:04
the the interest in sport brings people a lot of joy and a lot of connectedness and i think that
23:11
that's been missing for a lot of people so overall amazing and I mean getting behind more women
23:17
supporting sport and being interested in it is so cool do you think that there is an investing angle
23:23
here beyond you know we spoke about those the seats being incredibly expensive and kind of
23:29
essentially being investments how can you actually invest can you invest in tennis or sports ETFs or
23:36
like if you're sort of seeing this as just a massive trend in general and someone loves tennis
23:42
and they're thinking actually I so agree with what you're saying whether it's I don't know I know
23:47
there's formula one ways you can invest blah blah blah but like this particularly what can some of
23:53
us look into for like ideas if we want to invest in this space a lot of the stadiums for example
23:58
are listed companies so you could invest in the Wimbledon that could you invest in that business
24:03
No, no.
24:04
But a lot of the stadiums are listed.
24:05
A lot of the ticket companies are invested.
24:07
So there's like angles that you can do it.
24:10
There's like online gambling ETFs, which we're not going to condone.
24:13
It's more betting like angles, to be honest, because sports, a lot of the sports teams
24:20
and sports franchises aren't listed.
24:21
Yeah.
24:22
But it's more so just like being aware of like a big trend that's going on.
24:28
And there's different ways that you could invest in it.
24:31
We've been trying to double down on our sub stack lately.
24:34
And there is, just because sometimes it's hard to get absolutely everything out on a podcast.
24:39
If you haven't already subscribed to our newsletter, we'll put a link in the podcast show notes.
24:44
It's really cool.
24:45
It's kind of like a new platform where it's almost bloggy, websitey, kind of.
24:48
But we'll look into some of the angles when it comes to investing in sport.
24:53
If this is something you're interested in, we'll put something out in the next few weeks.
24:55
So you can subscribe to our sub stack in the podcast show notes.
24:58
Coming up after the break, we are going to be diving into the $124 trillion wealth transfer,
25:06
which is about to happen.
25:07
$124 trillion, no one heard that wrong.
25:09
It's a huge amount of money
25:11
that is going to be falling into the hands of women in the next little while.
25:14
And it's the
25:15
biggest handover of wealth that we've ever seen in the history of money.
25:18
I can't even comprehend
25:20
$124 trillion, but most of that is actually going to the hands of women.
25:25
So we're going to dig into
25:28
why this is.
25:29
And also where is it coming from?
25:32
I think that's the most interesting part.
25:34
I'm like, who is injecting money
25:37
into my bank account?
25:38
I'm so excited.
25:39
How do I line up?
25:40
Where do I go?
25:41
But first, we've got a quick word
25:43
from today's sponsor.
25:45
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and disclosures by using the link in the show notes and thanks generate for making this episode
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of the curve weekly possible i would say this next story vic and what we're about to talk about
26:24
is perhaps your biggest, what I say, I was about to say your biggest, the thing you're
26:31
most excited about in the world is the global wealth transfer.
26:34
Yes.
26:34
If there is a hill Victoria Harris is dying on, it's this hill.
26:37
It is enormous what's happening.
26:40
And I don't know, I mean, there's so many things that we're going to dig into today,
26:43
but perhaps you could just give an overview as to why this particular thing.
26:46
I mean, you've been talking about this for years.
26:49
And I think we've spoken about it in dribs and drabs on the podcast.
26:52
That made it sound super interesting.
26:54
Well, it's more just like you see headlines about it and people probably are aware, oh, yes, there's this thing called the Great Wealth Transfer.
27:03
And probably two years ago when we were planning and talking about what we wanted the curve to be, we were very aware of the stat because like for the first time, there is going to be more money in the hands of women than we've ever seen.
27:16
And it's actually surprisingly not what you think in terms of, oh, we've just earned more money.
27:21
There's actually a whole lot of other things at play, which is what we're going to dig into now.
27:26
It should be called the great handover to women, to be honest.
27:29
The biggest handout of all time?
27:31
Not handout.
27:32
Yeah, okay.
27:32
Handover.
27:33
Handover.
27:34
The biggest inheritance women have ever seen.
27:36
The biggest wealth transfer to women, essentially.
27:40
That was not original.
27:41
That was basically the time.
27:42
Yeah, I know.
27:43
Yes, you said this is probably the thing, the hill I die on or whatever.
27:46
I meant it in a positive way.
27:47
No, I know.
27:48
But I feel like everyone's talking about AI.
27:50
oh my god it's going to change the world you know oh you know all these companies are going to
27:53
benefit oh these jobs are going to be lost oh this is going to be you know it's like yes yes yes but
27:57
i'm like hey guys over here there's like something massive going on and part of me is like no actually
28:04
you guys can focus on your ai you focus on your ai we're kind of doing like a donald trump tactic
28:08
we're like just doing it while no one's watching yeah yeah yeah everyone else invest over there
28:12
because we're going to invest over here and we're going to be the biggest winners in terms of you
28:16
I mean, we as in the collective woman, but also the curve.
28:19
So yeah, it's massive.
28:22
And
28:23
over the next two decades, that $124 trillion will be passed down from boomers to the next
28:30
generation.
28:30
And yeah, it's the biggest wealth transfer in history.
28:35
And financial advisors are
28:37
not ready.
28:38
Wealth managers are not ready.
28:39
Funds are not ready.
28:40
All these investing products that
28:41
have been around and in ways of investing for years and years and years.
28:47
And now I'm going to get the biggest shakeup in history because all of those people that
28:52
they previously spoke to, catered to, created products for and invested were men.
28:58
And now women are going to be controlling the majority of the wealth in the world.
29:05
Thank God.
29:06
Honestly, thank bloody hell.
29:08
Let's think about the fact that most of the time when women have money, they're philanthropic with it.
29:13
It is really exciting to think that there is going to be hopefully some more empathetic decisions made with a huge amount of wealth in the world.
29:21
And before we move on too much, I think I'm not sure if we're going to get totally slapped in the face of saying boomers.
29:26
But if we just pause for a second and think, you know, there's been for a really long time, anyone that is not over the age of, let's say, 50 has kind of complained about a lot of things in terms of we've kind of been the generation that's been forgot about from a wealth accumulation standpoint.
29:42
Because a lot of us had parents that bought property for $2 that is now worth $2 million.
29:48
And there's been this whole like, okay, well, you guys managed to do that.
29:51
But now, like, how do you expect us to follow in your footsteps?
29:54
The fact that what we're saying in the next two decades is that essentially that generation will be dying and handing that money down.
30:03
So I think we need to explain why so much of that is going to be going to women and not necessarily both men and women.
30:09
So women outlive men in a traditional setup.
30:14
You know, when you've got a man and a woman, the man has been making those financial decisions or had the relationship with the financial advisor or the wealth manager.
30:23
they pass away that therefore gets transferred to to the wife or to the to the partner who is a
30:28
female traditionally a female and then when that woman passes away so say our our mothers then that
30:36
goes into into our hands and so you've got this kind of double whammy I guess that's happening
30:42
and we haven't been spoken to in the finance industry we've been the kind of the forgotten
30:49
the forgotten people and now we're going okay cool now I may have inherited this money or
30:55
now I'm in charge of this money making financial decisions and you've got I don't know John over
31:00
here who's been the family financial advisor or or you know the family accountant or whatever
31:06
that's been helping your parents with those decisions bye boys and you're like hang on a
31:11
second he John doesn't know how to deal with you because he's never had to deal with with someone
31:16
like you before.
31:16
Yeah, that's such a good point, actually.
31:18
You don't, like John, because you're...
31:20
Being spoken to in a weird way.
31:21
Yeah, and you don't understand.
31:23
And he's like, well, I'm supposed to be speaking
31:25
to your father or a different generation.
31:29
And so you're like, hang on, I'm just going to,
31:31
I'm going to go see if I want to change.
31:33
And so you're going to probably walk,
31:36
probably go to someone else.
31:38
Without like basically reading between the lines,
31:40
what we're saying is there are a lot of advisors
31:44
or wealth managers or people in the financial world
31:46
who have created products and services for men.
31:49
And there's some crazy statistic as something like 90% of people
31:54
who when it changes hands in terms of the person in charge,
31:57
they go to someone new.
31:58
So there's this huge conversation or like no one's really having it,
32:03
but basically a lot of women are all of a sudden going to have this control
32:06
and they're going to look around trying to find not a John, Nick or Sam.
32:12
and it's like are we thinking about that next generation how can we cater to them and how can
32:17
we make sure that the financial products are making sense to them they they can speak to
32:23
advisors if they want to and make sense and they like them and there's just yeah there's a lot to
32:27
that 70 percent of widows fire their financial advisor within a year of their husband's death
32:33
i mean i'm not surprised and that's that's not just disloyalty it's it's them genuinely
32:39
discovering their relationship was never with them.
32:41
And now they've got the power to choose
32:42
that on relationship.
32:43
Of course, it is a very, we're dealing with money.
32:45
It's very intimate.
32:46
It's very about trust and about relate, you know, relatability with the person.
32:50
And so
32:51
there is a need for that person and that relationship, you know, for you to feel
32:55
comfortable essentially.
32:56
Yeah.
32:57
My parents went through a phase where they were sort of trying
32:58
to figure out what to do with some of their money.
33:00
And it was quite interesting to be on the
33:02
periphery and see the way that they were being spoken to and the conversations that they were
33:05
having I was like wow it's so not like even as someone who has worked in now investing in money
33:13
for over five years I didn't understand what was being spoken about and I'm just like god that's
33:18
such a it's such a missed opportunity because if you have people that understand they don't want
33:22
to go and manage their money themselves but for some reason this concept of like don't tell them
33:27
too much or make it confusing makes people feel like they have the power and then they're never
33:30
going to leave but actually most women make the opposite decision where they're like this is
33:36
gibberish i don't understand anything that you're saying it's also a younger generation that um
33:41
have been uh brought up with a lot of a lot more choice you know there is crypto that we can invest
33:49
in there is trading platforms where you know you can buy any stock anywhere in the world
33:57
you know for a dollar and like our parents didn't have that and so there is a lot more
34:01
flexibility and choice and and how you invest in and being able to i guess control those those
34:06
decisions a bit more um and so there's a lot of change that needs to be needs to happen within
34:10
the wealth management space because when that money goes into the hands of women like there
34:15
is not enough female financial advisors or young financial advisors or funds that target women or
34:23
funds that speak to a younger audience for this money to go into so these old archaic kind of
34:29
investment houses like morgan stanley goldman said like they're scrambling they're scrambling
34:33
to be relatable not only to a female audience but a younger audience and it's kind of coming
34:39
back to things like sports they're sponsoring sports that now target young people and it's
34:44
like this whole like yeah sense they're trying to infiltrate like yeah get get young influencers
34:49
on board and all of that.
34:50
Oh my god that makes a lot of sense because I was looking at some of the
34:52
sponsors for some of the sporting games and I was like so random that that person's marketing here
34:57
like what and also hilarious that they're going to the most obvious place like a banner at a
35:04
football stadium because they have no idea how to talk to younger audiences it's like come on.
35:08
I think it might be worth talking about how because a lot of people who may not even realize
35:15
or know if their parents have money that they're planning on passing down to them.
35:18
Because this is going to sound kind of gross, maybe a bit vulgar,
35:21
but a lot of people talk about the easiest and most,
35:25
I guess the quickest way to get rich or to build wealth
35:29
is to get money early on.
35:31
Like the earlier that you can accumulate wealth, the faster it will grow,
35:34
the more that you can then rely on things like compounding interest
35:37
to make that money grow and grow over time.
35:39
Well, when you're young, you have no money but time.
35:43
And when you're older, you usually have money but no time.
35:45
And those two things are key in growing wealth.
35:47
Exactly.
35:48
And so I guess the conversation comes to,
35:50
as much as it maybe sounds,
35:52
and this is going to sound kind of off to say this,
35:54
but talking to your parents, talking to people,
35:56
are they planning on giving you or leaving anything behind?
35:59
Because actually it could be worth saying,
36:01
like, I'm not going to go spend it on something stupid.
36:04
I'll invest it straight away.
36:05
But, you know, as an example,
36:07
if someone was planning on leaving you,
36:09
I don't know, 50,000 when they die or whatever,
36:12
if you could actually use that now to buy a house
36:13
or to invest in something,
36:15
it's going to catapult what you can do and the decisions that you can make earlier.
36:20
I know that for my mum, she had a conversation with my grandma about this because
36:24
her generation was very much like, no, I want to leave when I, you know, when I die,
36:29
I want to leave something to you.
36:30
And it was really beautiful and such an amazing thing to
36:33
even have money to be able to pass down from an inheritance standpoint.
36:36
But there was my mum
36:37
saying, yeah, but I feel really limited by like what I could and couldn't do.
36:41
And like,
36:42
I want to also show how grateful I am for what you're leaving me.
36:45
Don't you want to see me using that money in a way that's like impacting my
36:50
life differently?
36:50
Like I know that a lot of people don't have those conversations with their
36:54
family, but it is also just worth thinking about that concept of.
36:58
I think it's also important, you know, that to be aware, like, yes,
37:02
there's that side.
37:03
It's also, you want to know if your parents are leaving you debt or,
37:07
you know, like,
37:07
I think it's really important just to have honest conversations about,
37:12
your finances with your parents um what they want to spend money on it sounds morbid but
37:18
funeral wise and all of that you know having making sure that you've got enough money
37:22
to cover that etc i mean the debt piece is terrifying and like so we've had so many
37:27
stories in the curve community of yeah unfortunately people not realizing until it's
37:34
too late what they've been left with and like yes we're talking about positive you know
37:38
inheritance here but it's interesting my parents have saved so well throughout their lives for
37:46
their retirement but now they're not spending and I'm I'm I'm like go on holiday the exact same
37:53
thing they're like we want to leave you money I'm like I don't want your money if it means you're
37:57
not enjoying the last few years of your life like it's like just don't leave me in like a lot of
38:01
debt but I would rather you went and spent and enjoyed your last years than worry about I'm fine
38:10
I should be able to and I shouldn't rely on an inheritance you know like it should be I should
38:14
be focusing on how I can make the most money myself to enjoy my lifestyle not relying on them
38:20
to you know their inheritance so that for me that's a bonus and this sounds very morbid but
38:25
like of course if I've lost my parents that's horrible and it's yeah I mean it's more yeah I
38:30
would rather they spent their last years enjoying their life yeah but I it's so funny because I've
38:37
seen the same thing in my parents where there's this fear around spending and you know they've
38:41
got to this place where they've paid off their mortgage luckily like how what an amazing place
38:45
to be in where you own the house you live in so one of your biggest expenses is not there which
38:50
is great but then stuff that is costing them say ten thousand a year they're really aware of it
38:55
now because they don't have as much coming in and I think it's that same fear that almost
39:00
all of us have throughout our whole working career where it's like well probably our whole life in
39:04
general where you're worried about not having enough and I think that the lack of awareness
39:09
around it and also not having conversations is just going to exacerbate that anxiety for them
39:14
too like do they have enough to but it's also that that the whole issue is am I gonna die tomorrow
39:21
or am I gonna die when I'm 120 and that's what you're planning for and it's like we're doing
39:26
everyone's doing it everyone's just so right plan for their for their lives and i think that's
39:30
imagine if you were like all right we're off to grace yeah and then you live for another 20 years
39:35
and you're thinking it's you know it's hard to plan for something god that's true the the end
39:40
point is unknown i think it's a really exciting time the fact that there's going to be so much
39:45
more money in the hands of women well i don't know if i can say this but we're we're creating
39:50
something to cater to this big transfer of wealth to women.
39:55
Yeah.
39:56
I'm like, actually, I know now why you're nervous,
39:59
because we actually can't give really much more than that,
40:02
which is so annoying.
40:04
But our investing club members know, because we've told them,
40:07
but everyone else, you're going to, do you know what?
40:10
I think we actually said this earlier in the episode,
40:14
signing up to our newsletter, you'll be the first to know
40:16
everything that's going on.
40:17
We've got some really exciting projects,
40:19
things that we've been working on for a long, long time
40:21
that we can't wait to share with you.
40:22
It's probably about a month away.
40:24
But yeah, fear not.
40:27
There are people trying to help.
40:28
To solve this problem.
40:29
Yes.
40:30
To provide something.
40:31
Yeah.
40:37
If anyone is listening to this
40:39
and they see things in the news,
40:41
they see them on Instagram,
40:42
they see them on TikTok, whatever,
40:44
people have started to send us things and ask like,
40:46
could you guys please talk about this?
40:47
I'd love for this to be unpacked.
40:49
We now, since we're going to be doing two episodes a week, we have more space and time to look into more of these stories to make sure that you're as up to date with what's going on as possible.
40:57
So feel free to send any requests through.
40:59
It's like a song request, but a news request.
41:03
And don't forget, our Raising the Curve episode will be out this Friday, not tomorrow.
41:09
So it is an IOU episode where we have Hannah Kumakis on again.
41:12
And we're talking about side hustles.
41:14
it's probably worth just saying like this whole wealth transfer that we've been talking about
41:18
we really need as many people to be educated particularly women so if you know anyone that's
41:24
a bit younger as in probably under the ages of like 28 maybe they just finished uni maybe you
41:30
know somebody the IOU podcast is perfect for beginners especially anyone that's in their
41:35
first job or like needing to know the basics about money because like that really if this
41:40
is the kind of thing that I could have learned at that age.
41:42
I would be in a completely different situation.
41:45
Never too early to start.
41:46
Never too early to start.
41:47
But keep an eye out for IOU on Friday.
41:50
Send it to someone you think would benefit.
41:52
And thank you so much for listening to our Wednesday episode.
41:55
Our first Wednesday episode.
41:57
Thank you so much for listening to The Curve Weekly.
41:59
Make sure you hit subscribe or follow wherever you're listening
42:02
so you're always up to date with the latest finance and investing news.
42:05
And feel free to leave a comment to let us know what you thought about this episode
42:07
because we would love your feedback.
42:09
we've got new Curve Weekly episodes for you to listen to every Monday but until then
42:14
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42:17
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42:21
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42:25
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42:36
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42:40
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42:44
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42:48
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42:53
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42:56
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42:58
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43:00
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43:01
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43:02
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