May 10, 2026
The greatest wealth transfer in history is imminent, at least according to Cerulli Associates (1), who is projecting wealth transferred through 2045 will total $84.4 trillion. And since the One Big Beautiful Bill Act (2) — which sets the estate tax exemption at $15 million per individual and $30 million per couple — was passed last year, this allows high-net worth individuals to pass on more wealth tax-free and offers more stability when planning a long-term estate strategy.
That being said, if you're a lower-earner, this tax exemption might feel inconsequential, and the bill as a whole could have punishing effects.
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According to Yale Budget Lab analysis (3), the One Big Beautiful Bill Act could result in a decline of about $700 in income for the bottom quintile of earners; meanwhile, it could boast an increase of about $30,000 for the top 1% of earners.
On a recent Office Hours (4) segment of the Prof G Pod discussing this new approach to taxing generational wealth, Scott Galloway said that the upcoming wealth transfer "entrenches inequality rather than resets it."
Be an owner instead of an earner
With all this mind, being a lower-earner doesn't mean your chance to build and pass on an estate is totally out of the question. You just have to start working on it ASAP.
On Office Hours (5), Galloway said, "If you think of yourself as a stock and you make $100,000 every year, every year that $100,000 is taxed at 30%." In other words, a salaried worker may only keep about $70,000 of that income after taxes — leaving less money available to save and invest.
Galloway added that the gap can widen over time. "And even though you're gaining $70,000 a year instead of gaining $100,000 if you own stocks, you're increasing $100,000 a year, they compound." His point: earned income is taxed as it comes in, while investments can keep growing before taxes are owed. Over many years, that compounding can leave asset owners with far more wealth than workers relying mainly on wages.
In other words, Galloway's point is that relying only on a paycheck can make it harder to build lasting wealth, while owning assets that appreciate may create more financial stability in the long run.
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He also noted that many people never earn enough to save consistently or buy appreciating assets in the first place. In this context, "owner" doesn't just mean a homeowner, it refers more broadly to someone who owns investments or assets that can grow in value over time.
It might seem like a given to focus on earning big bonuses or a higher salary, but the caveat of focusing on being an earner is what you're left with — or not left with — when your job comes to an end.
Investing in real estate, equity or investments that compound, can transition your status from earner to owner, and help you build up an estate to pass onto your loved ones.
"It's not earning millions of dollars," Galloway reiterates. "It's transitioning from earner to owner."
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Cerulli Associates (1); Internal Revenue Service (2); Yale Budget Lab (3); YouTube (4),(5)
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Em Norton is a Content Specialist at moneywise.com. They have been with the company since 2022.
