The Great Wealth Transfer... Won't Change Anything (probably)

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#wealth #finance #realestate
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In the coming decades, the wealthiest generation in history will… die.

It’s an unfortunate albeit inevitable fact of life… but baby boomers will eventually go extinct, and they will pass down over ninety TRILLION dollars [$90,000,000,000] to the next generation within America ALONE.

This much money COULD fix a lot of problems like student debt, unaffordable housing, inadequate retirement savings and record credit card debt.

BUT don’t get too excited just yet, because at best the great wealth transfer is a financial illusion, and it could actually just end up making things worse…

Baby boomers are the wealthiest generation in history.

In America they control half of the nation's wealth according to the 2024 wealth report prepared by the property management company Knight Frank.

Other sources estimate that baby boomers only hold a mere seventy-eight trillion dollars [$78,000,000,000] in assets

That difference of 12 trillion dollars is due to what you really define as wealth, and that slight difference in opinion is more than the collective wealth of half the planet.

Regardless of the exact methodology used to calculate generation wealth they all agree on one thing, baby boomers are the kings and everybody else has been left is holding onto what is left over.

That concentration of wealth has according to many come at the expense of younger generations who are now poorer than their parents were at the same age

So that means that when life finds a way and this wealth is passed down it should fix these generational issues right? Wrong…

So it’s time to learn How Money Works to find out why the great wealth transfer… probably won’t change anything

[gauloise]

All that money is going to nursing homes long before it goes to their kids.

[thomaschristiansen]

“A society grows great when old men plant trees in whose shade they shall never sit.”... Boomers will be remembered as the generation who cut down the orchard for firewood.

[doujinflip]

It'll be the greatest generational transfer of wealth... to corporations, not to their kids.

[Justsomeguyyuyu]

My Boomer in laws actually went out of their way to tell us they’re spending all their money. Like…completely out of nowhere. My wife and I do great. We’ve literally never asked them for a dime. It was weird.

[DorathyJoy]

Transfer of wealth usually occur during market crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investments and earning more as recession fear increases, apparently there are strategies to 3x gains in this present market cos I read of someone that pulled a profit of $350k within 6months, and it would really help if you could make a video covering these strategies.

[RaymondcrawRaymondCrawley]

Creating wealth entails establishing positive routines, I had only $78k to my name at 42 when I first woke up to this reality. I chose the stock market as a medium of growth, got an excellent financial advisor, Financial management is a vital subject that many avoid, often leading to future regrets.

[michaelschiemer]

For boomers and senior citizens, the current market and economy are unnecessarily harder. I'm used to simply purchasing and holding assets, which doesn't seem applicable to the current volatile market, and inflation is catching up with my portfolio. My biggest concern is whether I'll survive after retirement.

[marmantole]

My boomer father lives in a 1.2 million dollar, four bedroom house by himself. He has a BMW convertible, just bought himself a brand new Audi SUV, and flies first class everywhere he goes. Yet he still asked me, a married father of two young kids who drives a 12 year old Hyundai to give him $75, 000. This generation is unbelievable.

[cfbmoo]

If my mother went to a nursing home this year it'd cost around $10K per month. Possibly more as she needs full care and dementia care. So about $120, 000 per year if she were lucky. That's why I'm taking care of her at home by myself with hospice helping. Just too expensive to put her in a place that's been notoriously bought up by private equity companies that cut staff and leave patients drugged and neglected from overworked staff. Not worth the $10K+ a month.

[mangofoxy]

I remember my parents bragging that they went to college on $3k, and that they plan to take their wealth and donate all of it so my siblings and I can get it ourselves. They like to laugh that it won’t matter because they’ll be dead.

They are confused why I resent them as I’m struggling to make ends meet

[ChavezDIY]

My boomer Dad said he was told by a boomer friend to spend and enjoy his money because the "kids only care about money". I told him I agreed for him to spend it. Instead he created a living trust and transferred his property to it and left us as beneficiaries. My dad is currently being evaluated for dementia with psychosis.

[SeanTalkoff]

I recommend diversifying your investments by considering stocks alongside real estate. During a recession, there are potential buying opportunities in the stock market if approached cautiously. Additionally, market volatility can offer short-term buying and selling opportunities. However, please note that this is not financial advice. It's important to be proactive in investing as cash may not be the most advantageous option during these times.

[MarjorieRyanJoy]

I retired in 2021 believing $400k would be enough, but with this sustained inflation, that's no longer my reality. Each withdrawal has made it harder for my nest-egg to recover through compounding Interest. I deeply regret not saving more when I had the chance

[CharlotteJacobsons]

Ah, the Great Wealth Transfer—sounds like an epic plot twist in the investment world! Seriously, though, if you’ve got $$ sitting in your emergency fund and you’re itching to start investing, I say go for it. Just don’t expect this massive shift of wealth to magically make you rich overnight. Remember, investing is like cooking; you need the right ingredients, and sometimes a good recipe doesn’t hurt. Maybe start with something low-risk while you figure out the lay of the land. Good luck, and may your portfolio be ever in your

[Ogier]

tl:dw : If 10% of people hold 90% of the wealth then after transfer you still end up with 10% owning 90%

[Angelinacortez]

As someone passionate about investments, I often contemplate the strategies and paths that enable top-tier investors to amass wealth in the millions. While I possess a substantial initial capital, I am uncertain about the specific tactics or avenues that would facilitate achieving gains exceeding $400k, similar to those achieved by several others this season.

[ListenConcentr]

Reverse mortgage to keep overspending as they have their entire lives will mean there is nothing left to inherit.

[katherinewiykovics]

There's also another factor, my grandma kept getting all these "Family values are in trouble" notices from the republican party and spent a good deal of money donating to them. Political parties love old people, they have cash to spare and if they tug on the right heartstrings, they can get it. My inheritance went to Trump and I bet other peoples have gone directly to Biden.

[penitent]

They'll spend it on holiday in retirement, nursing home or whatever else. It's what they were taught growing up, work hard in life and then enjoy the well earned retirement, in their mind their kids still has same opportunities for futures they do when they were young. Still see Boomers bleating that back in their days their mortgage interest was 15% and we have it too low. 15% interest on a $70k mortgage with a $25k income when food cost pennies is a lot more manageable than 6% interest on a $350k mortgage on a $50k income.

[stanleyzac]

It is very easy to buy in on trending stocks but the problem is knowing when to sell or hold, which is why a coach is important. I've been in touch with one for about a year now and although I was initially skeptical about it, I will say I've made more progress within a year generating 6figure profit