The 'wealth transfer' from boomers won't save Gen X and millennials
The 'wealth transfer' from boomers won't save Gen X and millennials
Experts say baby boomers will give more than $50 trillion to their heirs. But for many, health care costs will claim the bulk of that wealth.
Experts say baby boomers will give more than $50 trillion to their heirs. But for many, health care costs will claim the bulk of that wealth.
The story goes that baby boomers are going to give tens of trillions of dollars to their heirs over the next few decades.
The “generational wealth transfer” has become a media fascination, both for its eye-popping size and because it might help younger generations as they face doubts about their financial security.
That shift is already in the works, and will continue for a couple of decades. According to wealth management firm Cerulli Associates, some $53 trillion will be passed down from boomers to their Gen X, millennial and Gen Z heirs, as well as to charities. That includes both gifts during their lifetimes and inheritances afterward.
But the overwhelming cost of health care for older people means most people in those later generations won’t inherit much, even if their elders seem well-off today.
I'm Gen X with an adult daughter.
I have never received a penny from a deceased family member and have watched too many people getting into nasty fights over the crumbs left by their recently departed loved ones.
It's become a life priority to leave my daughter a clean estate, with no debt encumbrance, and no possibility for any other person to get at it.
At present, if I were to take my leave from this mortal coil today, she would net roughly $300k.
Part of my plan is to get everything out of my estate and into her hands before healthcare takes it all. Fuck them.
The irony here is that she won't need it. She's done well for herself. I anticipate that when it's my turn to shake hands with the devil, she'll more likely than not use the proceeds for some charitable pursuit.
The point is that I want her to make that choice rather than giving some doctor his semi-annual Ferrari that he'll drive for six months then dispose of.
My mom was a boomer and died when I was a young adult.
Because she was wildly irresponsible with money, as many boomers were in the early internet days, and because of cancer, the only asset really left after she died was the house, which my step dad sold because they were upside down on it after the bubble burst. He didn’t really come out ahead on it.
I was left with nothing but her stuff to sell off. I made about $4k total on it, and it took months on eBay to even get that.
I hope it’s better for others, but I rather expect it won’t be unless they are already pretty well off -and- make a point to preserve as much as they can, which most won’t because “I earned it I’m going to spend it as I see fit”. (Which, you know, totally fair, but doesn’t help if you are banking on inheritance)
The wealth the Boomers amassed decades ago was good enough to pay off a mortgage and pay for their retirement. It didn't include passing anything to the next generation. The money itself became borderline worthless because their "Greed is good" and "I've got mine. Fuck you" mindset quite literally destroyed the world. The economy is just as fucked as the planet.
No transfer for me. My boomer dad already sold our family's property to slumlords
It's kind of ridiculous how rich people get everyone riled up about estate taxes that will barely impact them, if at all. It will impact the rich though, extensively if they're not careful with their arrangements.
Then they find out that a parent put a reverse mortgage on the family home...
One of my mothers boomer quotes , "I'm going to spend my kids inheritance". She did too. She is now 84 and needs to sell and borrow. Good thing I believed her when she started saying this in 1988.
for many, health care costs will claim the bulk of that wealth.
They system was designed that way. Save for retirement so corporate healthcare can get it.
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Thankfully, I've never imagined gaining anything from my mom when she passes some day. Thankfully her parents set up a trust so she isn't homeless, but when she finally gives in to assisted living, those bills will eat whatever is left.
She's always like, "but I'm leaving you the house!"
The house is full of worthless collectibles and smells terrible after decades of floods and cats. If she got hit by a bus tomorrow I'd probably sell it to one of those seedy We Buy Ugly Houses companies.
Oh neat, so our robust free market economy that is more meritocritous than anywhere else on earth is actually a giant sham, better hope you have rich parents!
All that stuff your parents told you your whole life about working hard studying hard and you'd be guaranteed to make it? Oops, they were wrong, now help them figure out how to access their Hulu account, again. What? You've barely eaten? Ah, pff, builds character!
If someone figures out a way to actually set up a business that soylent greens the boomers, I'll figure out how to do some exquisite cooking recipes with it.
Our father locked up our property in legal hell to protect it from his evil siblings. But now we can do much of anything with it LOL other than keep paying taxes. That's generational debt lol.
Actually it's probably really smart because if you sell to slumlords, you are giving up your real wealth. Just let the properties gain momentum. One day for your kids to fight about. Just have 1 kid problem solved. But if he dies? Ok have two kids. Send one to the monstery or the convent. But what if they marry poor....hmm arrange marriages! What if they don't like that? ....teach them racism from the early moments in life....oh shit, this sounds like we are destined to recycle ♻️ hilter and his narzis. Yah maybe sell the house and go back to being poor. That's how we did it!
Eat the rich
My parents have a ranch house, 3 adult kids and medical issues. Assuming they don't go to a home and have to sell their house to afford it, my brother is going to need it a lot more than I do. Similar in laws. It would be the same for in law grandparents but they happened to be the type that will die before seeking help. It'll probably get us sued by disgruntled family in inheritance disputes anyways.
We're on our own.
This is hilarious. They're gonna spend all their money clinging to life. The future they made by raping the future. and they won't even just leave!
Only things I expect to inherit from boomers is a fucked up ecological sauna, do-nothing political system, and more taxes.
My mother passed recently and was the caregiver for my father who has Parkinson’s and can’t live alone. My parents managed to save some money but not enough to afford him moving to an assisted living facility but has too much to qualify for Medicaid. There won’t be enough money to care for him let alone any sort of inheritance. Fucking system is so fucking broken.
There's a reason why no other country in the world imitates the US healthcare insurance system. Sucks everyone dry as soon as they get sick.