Episode summary
How Will the $84 Trillion Wealth Transfer Play Out?
Ask The Compound
· · Hosts: Ben Carlson, Duncan Hill · Guests: Joey Fishman
Summary
The episode centers on how to think about concentration, cash, and timing across a few different life stages. The host argues that a 27-year-old couple with 21 houses, $4.5 million of real estate, and strong cash flow can afford to keep leaning into real estate for now because they have time, a salary to fall back on, and other businesses growing. The counterpoint is the classic diversification warning: leverage and local real estate risk can still blow up if the market turns.
Joey Fishman joins to explain how RSUs should fit into a financial plan. His view is that most employees should treat RSUs like a bonus, not a core holding, max tax-advantaged accounts first, and sell down exposure once the stock is no longer a meaningful threat to the overall plan. He also says not to sell into a hole after a bad earnings event, and to be more willing to sell when the stock is stretched far above normal levels.
The show also pushes back on the idea that the $84 trillion wealth transfer will hit all at once. The host says it will likely arrive slowly through deaths, downsizing, and inheritance over decades. On emergency funds, the host says cash levels should be strategic and tied to comfort, job stability, and portfolio construction rather than rigid rules.
Key takeaways
- The host says a 27-year-old couple with 21 houses and $2.4 million of debt can still take more real-estate risk because they have time and income to absorb setbacks.
- Joey Fishman says RSUs should usually be treated as a bonus and sold down as needed so they do not threaten the rest of the financial plan.
- Fishman says he would avoid selling RSUs into a post-news crater, but would be more willing to liquidate when the stock is unusually far above its normal range.
- The host argues the $83.5 trillion to $84 trillion wealth transfer will unfold over decades, not as a sudden market event.
- On cash, the host says holding more than the usual 3 to 6 months can make sense if it is part of a deliberate asset-allocation choice and helps you sleep at night.
Notable quotes
“I say put your foot on the gas pedal and see what happens. Could it blow up in your face? Yeah, it could”
“But by and large, you know, what you generally want to do is, you know, uh, sell them down as much as you can so it doesn't threaten your overall financial plan”
“this is why I'm not nervous about baby boomers crashing the stock market”
“if you do hold some cash strategically, it's not the end of the world”
How the episode opens
Welcome back to Ask the Compound, the show where you ask and we answer. I'm your host, Ben Carlson. It is estimated that there's $84 trillion that will change hands in the coming years as the baby boomer generation slowly dies off and spends their money.
So, will the baby boomers crash the stock market when they all go to sell? Will there finally be more houses for sale? How will the great wealth transfer play out?
We answer these questions and more on today's show. Please stick around. Our email here is ask the compound show@gmail.com.
On today's show, we answer questions straight from our compound audience about how to diversify away from your real estate property empire. How you should think about RSUs when it comes to your financial plan. When is it okay to cut your annual savings in half to enjoy life a little bit and buy a house?
What if the great great wealth transfer isn't so great? And finally, how do I personally think about emergency savings funds? And when is it okay to let your cash position drift a little higher when you're worried about the market?
Usually we do the show live. We're pre-taping today because we will be in Huntington Beach, California for future proof. Uh yeah, can't wait.
I'll be Yeah, I'll be on the live chat anyway. Um today's show is brought to you by Rocket Money. I personally use Rocket Money to track our spending, keep a lid on our subscriptions because they keep growing.
Budget for any upcoming expenses and keeping tabs on any out of the ordinary purchases that my wife makes. With prices going up on just about everything lately, dealing with money can be stressful. Trying to manage subscriptions, track spending, and cut costs can feel overwhelming.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- wealth transfer
- real estate diversification
- when to splurge
- rsus
- emergency funds
Companies and tickers mentioned
- Rocket Money
- Ritholtz Wealth Management
- Public Investing
- Bakkt Crypto Solutions
- OpenAI
Watch the episode
Watch “How Will the $84 Trillion Wealth Transfer Play Out?” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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