Just how great will “The Great Wealth Transfer” be? The Baby Boomer generation, those born between 1946 and 1964, hold roughly 50% of all household wealth in the U.S – an estimated $78 Trillion. (1) For years, economists and analysts have been predicting a large portion of that will fall to the next generation.
Not so fast.
In January, Schwab released a survey of high net-worth individuals and found that 45% of Boomers are saying they want to enjoy their money while they’re still alive. (2) They feel they’ve worked hard for their money and their children should build their own wealth.
I don’t understand that at all … but then … I’ve never met their kids.
On the other side of the spectrum are the Boomers who are living below their means. They are the “what-ifs.” What if health care costs are extreme? What if inflation eats away at their spending power? What if they live to 100 and run out of money?
I think the wealth transfer conversation should be about both. It’s about enjoying life today – and building memories while we can. And it’s about being responsible so we can take care of ourselves and not be a burden on our kids or society.
We have this one precious life! Let’s continue to plan well for all our todays and all our tomorrows.
Live well,
Barbara
- https://www.nytimes.com/2023/05/14/business/economy/wealth-generations.html
- https://pressroom.aboutschwab.com/press-releases/press-release/2024/Generational-Wealth-Divide-Younger-High-Net-Worth-Americans-May-Reshape-How-Wealth-Is-Transferred-to-Future-Generations-According-to-New-Schwab-Survey/default.aspx
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