Wealth goes “woke”

Weekly Updates

The Great Wealth Transfer is expected to change global wealth ownership. Wealth owners will be younger, more female—and more openly queer. Gallup’s US survey suggests roughly 3% of the boomer generation are openly LGBTQ+. However, around 20% of the inheriting generation (predominantly Gen X) are either openly queer or have openly queer children. The views and values of LGBTQ+ investors will become significantly more important in driving investment strategies and the global cost of capital.
Many LGBTQ+ investors’ reaction is “we’re no different.” Sadly, that is not true in a world where prejudice persists. Queer investors may need more liquidity, as they have a higher risk of losing their jobs (even where legal protections theoretically prevent that).
Longevity also matters. Queer people are more likely to die younger. In the UK, a young queer man can expect to live 1.3 fewer years than a straight man, perhaps because of the additional stress. However, any queer person over 75 years old can expect to outlive their straight counterparts. Investing for retirement and health care needs to consider this.
Legacy investing is also different. Aside from preferences in philanthropy, queer investors have to consider the laws of inheritance. Many countries fail to recognise the legality of marriages or parental rights, requiring careful planning.