Vol 44 - "Inheritocracy" & "The Bank of Mum and Dad" | Jadewell Family Office Investment Newsletter
- Ann Yu
- 31 minutes ago
- 6 min read
January 4, 2026
2025 — Jadewell's very first year — flew by in a blink ✨
A year of joy, challenges, growth, and humility 🌿
Stepping into 2026 with Li Bai’s words in mind:
行路難！行路難！多歧路，今安在？
長風破浪會有時，直掛雲帆濟滄海。
Winds will rise and waves will break
I’ll lift my sails and chase the open sea I take.
During the Christmas and New Year break, I finally allowed myself a little time off.
Instead of staying on high alert watching the financial markets every day, I actually relaxed and read a few books for pleasure.
The one that stood out most was:
“Inheritocracy: It’s Time to Talk About the Bank of Mum and Dad.”
The book looks at the wealthy but aging Baby Boomer generation and how their assets are gradually being passed down to Millennials — the “sandwich generation” caught between caring for aging parents and raising young children.
But unlike the usual reports from financial institutions, this book approaches the topic from everyday life. It raises questions I had never considered before, yet they feel strikingly real.
If you’re reading this, chances are you’re part of either the Baby Boomer or Millennial generation yourself.
In this week’s newsletter, I’d love to share a few reflections inspired by the book. Perhaps you’ll see a bit of your own story in it too?
Contents of This Week's Newsletter
Family Office Buzz | |
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Next Week | |
Social Media |
【Family Office Buzz】Inheritocracy & The Bank of Mum and Dad
My parents belong to the Baby Boomer generation (born between 1946 and 1964), the group that shaped much of the modern world — culturally, politically, and economically.
💼 The Baby Boomer upbringing: Extraordinary Tailwinds
Rapid economic expansion: Global GDP soared, and job opportunities everywhere.
Affordable housing prices and fast‑rising wages: Buying a home was achievable, and assets appreciated quickly.
Widespread education and strong social mobility: Many had the chance to build success from the ground up.
Well‑run retirement systems: Civil servants, professionals, and business owners accumulated meaningful wealth.
All of this made Boomers the wealthiest generation in history, holding more than half of global personal wealth and a significant share of property.
I, on the other hand, am part of the Millennial generation (born between 1981 and 1996), now the core workforce of society.
🏠 But unlike the Boomer's "golden era", Millennials are navigating:
Soaring housing prices and stagnant wages: Buying a home on our own feels nearly impossible, let alone having an asset that appreciates.
Rising education and healthcare costs: Raising children is expensive, and caring for aging parents is expensive too.
And of course, that persistent longing we all carry for "work‑life balance".
It’s not that we aren’t working hard — it’s that the difficulty level of our efforts is far higher than what the previous generation faced.
💸 Hard work doesn't always translate into wealth
The uncomfortable truth is that much of the wealth Millennials have — or will eventually have — may not come from our own labor, but from the “Bank of Mum and Dad.”
This support can take many forms: financial help, inheritance, connections/referrals, free housing, free childcare, even free labor.
As the book’s author puts it, most Millennials don’t need to rebel — more importantly, we can’t afford the cost of rebellion.
🌉 Boomers vs. Millennials
As Baby Boomers move into their 60s to 80s, we are witnessing 👉 the largest wealth transfer in history.
And that is exactly what Inheritocracy explores at its core.
💡My Takeaway #1: Be nice to your grandma
The author raises a point that is often overlooked yet incredibly insightful:
Before wealth is transferred between generations, it often undergoes a major shift between genders — landing first in the hands of widows.
The reasons are straightforward:
Baby Boomers overwhelmingly married in heterosexual unions
Women generally live longer than men
Most countries offer the most favorable estate‑tax treatment for assets left to a surviving spouse
In many Asian blue‑blood families, we see the same pattern:
the ultimate decision‑making power often ends up with “the matriarch,”(except, of course, in families with polygamy or large age gaps).
For family offices, this dynamic is especially important.
Baby Boomer mothers often have investment preferences that differ significantly from fathers of the same generation:
Greater emphasis on sustainability and impact investing
More willingness to take financial advice from their children — especially daughters
For bankers, this may point to a harsh reality:
It’s said that 70% of women fire their financial advisor immediately after their husband passes away.
It’s time to rethink who the real client is.
💡My Takeaway #2: Wealth that will fall from the sky
Although many Baby Boomer parents are still healthy today, the reality is undeniable: by the 2040s and 2050s, most of their wealth will have shifted into Millennial hands.
Which raises an important question:
What will Millennials do when they suddenly inherit such a large pool of assets?
• Retire early?
• Finally pay off the 40-year mortgage and buy more properties?
• Invest?
• Start a business?
• Travel the world?
My own expertise is in financial investing, and from what I’ve observed, Millennials have a very distinct investment mindset.
Compared with Gen Z, Millennials face far heavier real‑world pressures. As a result, Millennials are less likely to engage in YOLO‑style, high‑leverage and speculative investments. Instead, they grew up under the influence of Buffett‑style value investing — prioritizing long‑term thinking, stability, and compounding.
Compared with their Baby Boomer parents, Millennials — who grew up with the internet — are far more open to new ideas, new trends, and even new asset classes, rather than simply holding traditional high‑dividend stocks and waiting for payouts.
However, today’s investment products are still largely designed around Boomer preferences. That’s understandable — after all, Boomers still control most of the wealth.
But as the gears of Inheritocracy begin to turn, Millennials will inevitably reshape the investment landscape, adjusting and reinventing the portfolios and tools their parents leave behind.
This generational shift isn’t just a transfer of wealth — it’s a transformation of investment philosophy.
Millennial friends, are you ready for it? Come chat with Jadewell Family Office today and see how we can support you!
【Next Week】Key Events to Watch in the Week Ahead:
US - Eco Data
Jan 9 (Fri) - Non-Far Payroll, Unemployment Rate
【Social Media】Topics from Jadewell's Social Media
Can Retail Investors Buy SpaceX Through ETFs? 😲
Rumor has it that SpaceX may IPO next year with a potential US$1.5T valuation — possibly the biggest IPO in human history.
But here’s the twist: While institutions and rich people can access SpaceX privately via different channels, retail investors can also buy SpaceX through ETFs.
⚠️ BUT — This post is not recommending these ETFs. It’s here to warn you about the hidden traps... 👉 Facebook (Chinese) / Instagram (English)
How to Read the Fed's Dot Plot?
What exactly is the Federal Reserve’s famous interest rate “dot plot” that everyone keeps talking about? And since it was first introduced in 2012, how has it evolved in response to shifting political objectives?
From the dot plot released last month, what subtle hints can we pick up about what Fed officials are really thinking beneath the surface? 👉 Facebook (Chinese) / Instagram (English)
About Jadewell Family Office
Jadewell is committed to offering proactive, customized services akin to a “single-family office,” yet within the ease of a “multi-family office” environment.
- HK SFC Licensed (Type 4&9)
- Tailor-Made Investment Advisory Services
- Portfolio Consolidation Across Banks
- Zero Commission Model
- Decades of Experience Across Leading Global Private Banks
Ann Yu
Co-Founder and CEO
Jadewell Family Office
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