What Happens to the Global Economy When All The Boomers... Die?

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#business #finance #wealthyliving
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It doesn’t mean anything to be Working class or middle class anymore…

The only thing that matters is if you own a home or if you don’t.

The home you live in now statistically makes more money than you do and the last hope that a lot of young people have to catch up is getting a house gifted to them by a relative... which begs the question.

What happens to the real estate market when all the boomers… die?

There is an old saying that the best time to start investing was 30 years ago, the second-best time is right now. But that conventional wisdom might not hold up in today’s market.

Buying a home at the right time could set you and family up for financial security for the rest of your life.

The only thing is, the right time was when you were still in school and if you try to buy a home now you will be taking on record high interest rates, record high prices AND record low availability all at the same time…

People sell homes for two reasons, because they want to and because they HAVE to.

Nobody who already has a home WANTS to sell it because most Americans have been able to lock in record low interest rates.

If they sell their house and buy another one, they will get a new mortgage at interest rates which will TRIPPLE their payments on a home of the same value.

According to data from the national association of realtors, eighty-seven percent [87%] of new home purchases are made using a mortgage, and the average downpayment of a first home buyer is only seven percent [7%].

[avenger]

I've been telling people for years. Nobody gets inheritance anymore, it all goes to the medical industry.

[Bob-B-.]

As a geriatric nurse, I can tell you the most cost effective way to retire past 65 is a hybrid program of home health visits and living in your home. Nursing home is a real estate + medical expense with a captive audience.

[AndreTadeudeCarvalho]

The only Great Wealth transfer I'm seeing is from the poor to the already wealthy.

[Vdadmartin]

I’ve been in plenty Ubers where the drivers tell me they’re technically retired but due to the high living cost they need to supplement their savings

[Baltimoreed]

Gave my son money to buy a big piece of property rather than having him wait until I croak. Did this 5 yrs ago. Only 74 and in good health. Given the insanity in America today I think we did good. Have had multiple unsolicited offers on the property since we bought it. Glad i did it. They are really working hard on the homestead.

[rebeltheharem]

What I'm hearing is that we need to stop the collusion between the health insurance companies, the health care providers, and health related manufacturing companies.

[PRSWAGSTER]

I worked in a hospice. PLEASE INVEST IN YOUR HEALTH. It is genuinely terrible everywhere. Don’t believe anyone whatsoever no matter how nice they seem. No one cares or they get broken too quickly to care anymore.

[drtyhay]

My parents (at my current age) made significantly less than median income, yet they where on their second house and second kid, with a stay at home mom. Last year I made close to double the median income. 50% of my pay was from overtime, so I don't have time to have a life or even date. No kid, no wife/girlfriend, and no chance at buying a house for several more years. Gen Z and gen A where cooked before we even got to the starting line

[Threedogsinatrenchcoat]

The greatest wealth transfer will probably not happen, cause 95% of senior living facilities are owned by private equity, and they have a habit of pumping pharmaceuticals into patients as long as there are funds (average cost around 100k/year)

[StopItRyan]

38:45 33-year-old millennial home owner here. This is how I bought mine in 2020 - my (now) wife had a student trip cancelled due to COVID right as housing prices exploded so we had an $8k towards a down payment available right as my landlord jacked up my rent $400. A week later, the George Floyd protests/riots happened and my neighborhood was severely effected (Midway, St Paul, MN), because of this all the other buyers fled to suburbs and we closed with $80k in equity.

The neighborhood has since rebuilt and now I live in a great community that is highly walkable with lots of mutual aid between neighbors and a bunch of new local businesses have filled in the vacancies from the chains that were looted and closed. 11/10 decision to buy when and where I did.

My advice is if there is a disaster or something that happens, usually people pull their purchase bids and you can try to get in then. Its not ideal that something like that happened but at least you will be there to help the neighborhood rebuild. I'm now the go-to guy on my block for automotive advice, I go to city council meetings, and I help my neighbors with vegetable gardening.

[diegoarc]

My unhealthy lifestyle is my retirement plan

[themomaw]

So essentially, we're all screwed and everything is hopeless, and the more people realize and accept the fact that they will never be happy again, the more workers we will lose from the work force which makes the problem worse. *Fantastic*

[RobbieNixon-dw]

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.

[selfprojects]

The investment markets collapse but the economy soars because young people will have jobs again and be able to afford things again. It’s boomers preparing for retirement that has assets in bubbles and are making things unaffordable while they also refuse to retire because they don’t have enough junk yet.

[DanielH]

I know so many poor boomers and I honestly can not understand how they got to that point. Buying a home was 2.5x salary and virtually every other expense was cheaper... Personally I have some healthcare The wealthy boomers are getting absolutely soaked in end of life healthcare costs. A million dollar home sale can easily get wiped out after a few years living in a care home. A lot of the money won't get passed down to family, friends and charities.

[titolovely]

the problem with small businesses is theyre not like larger ones. they dont "get passed down" usually because most of these businesses rely on on only 1-2 key people that dont get replaced when the boomer retires/dies. almost all of the boomer owned small businesses ive known in my life closed down after the owner stopped working. so to say that this is "wealth" that will be "passed down" is false. these businesses will simply close. the bigger problem is the skills that it took to build these businesses leave with them, so unless you personally worked at trying to inherit that business and skills, it's simply gone. the other problem is that much of the wealth held in assets by boomers will be liquidated to pay for healthcare and funeral expenses. take into account the taxes on the inherited money and i think there's a lot of people that will be very disappointed with what they inherit.

[benjamineprg]

boomer generation has had on the global economy, everything from driving consumer markets to shaping fiscal policies. The demographic shift alone could redefine entire sectors

[bbdiabo]

what happens: nepobabies inherit the wealth and the cycle begins anew

[HouseRavensong]

I don't know if I'm an outlier (Gen - X), but it took me so long to start earning 6 figures, that my 401k contributions only grew enough to generate a few $100k. Not enough to retire. I'll be working in some capacity until I die.

[dadsoul]

My plan is FIRE. If that doesn't work out, my plan is a fire.