While headlines tout a massive wealth transfer, a survey of average consumers shows a more modest reality. About half of inheritances are under $100,000, and only 10% exceed half a million, suggesting the largest sums are concentrated among the very wealthy not captured in the data.

The economic theory that rising asset values boost spending is flawed. It ignores 'mental accounting'—people treat different types of wealth differently. A rise in home value leads to almost zero increased spending, while a cash windfall from a stock sale or lottery win is spent freely. The source of wealth dictates its use.

The largest intergenerational wealth transfer in history is underway, with $84 trillion set to change hands by 2045. Critically, this will entrench inequality rather than reset it, as the wealthiest 1.5% of households are expected to receive 42% of the total amount.

The impact of stock market gains on broad consumer spending is minimal. Seventy years of economic data show an extremely tight correlation between income growth and spending growth. This indicates that the job market and wages, not portfolio values, are the true engine of consumer activity.

Social Security is framed not just as a successful anti-poverty program, but as a system that annually moves over a trillion dollars from the younger, less wealthy working-age population to the most affluent generation in history, who are often asset-rich.

Official data misses a key driver of consumer strength: a "stealth" wealth transfer from Boomer parents to their adult children. This support, covering big-ticket items like vacations and childcare, frees up income and explains consumer resilience despite low official savings rates and lackluster income growth.

The great wealth transfer won't broadly boost the economy because inheritances largely flow to those who are less likely to spend it. Data shows 75% of inherited wealth goes to heirs already in the top 10% of wealth, who have a lower propensity to consume.

A major behavioral shift is underway: two-thirds of Boomers are transferring wealth to their heirs while alive, unlike the Silent Generation. This trend fuels current spending on big-ticket items like family vacations and home down payments, impacting the economy now.

Contrary to the popular narrative, the initial transfer of Boomer wealth will predominantly go to surviving spouses. This massive horizontal wealth shift precedes the widely discussed generational transfer to children, creating different planning and relationship challenges for advisors.