December 15, 2010
I’ve been talking about it for years and now people are starting to really hear about it through the media … WEALTH TRANSFER.
Baby boomers – who’ve already inherited $2.4 trillion from their older generations – are set to rake in another $8.4 trillion, according to a study by the Center for Retirement Research at Boston College, sponsored by MetLife.
Listen up, guys! Those numbers are on top of another $3.2 trillion the “boomers” are set to collect while their parents are still around. That’s crazy, insane money!
Even with all this wealth coming down the pike, most of the Me Generation hasn’t saved like they should have, and they don’t have the coverage they need to insure their families are set in case the unthinkable happens.
Simply put: the wealth transfer is a nice chunk of change, but it AIN’T enough people!
Check it out. Total household wealth for all Americans was about $66 trillion in 2007. The boomers take in roughly 16 cents out of every single dollar of American household wealth. Then, two-thirds of the boomers will eventually inherit something, with the median transfer being around $64,000 per boomer.
But, most won’t reach that median number. It’s America and the majority won’t get huge, crazy inheritances! The boomers from the richest families will take in a major chunk of the transfers, while those at the bottom won’t have much left once Uncle Sam takes his cut.
Hey, what if dear old Mom and Dad decide they want to live it up in their final years. Let’s say they take the HAVE FUN (take a bunch of trips, go to events, etc.), EAT WELL (eat all the things they always wanted to and eat at all the swank restaurants now that the children are out of their hair) and LEAVE LITTLE MONEY (sorry kids and grandkids, we had fun) approach to things, instead of leaving behind stacks of cash for the family to enjoy.
It’s happening and the money people believe they are getting might not be what they had hoped for in the end. Undersaving for years while waiting for inheritance money is dangerous. But it is happening all across our country.
In some cases, the givers believe their portfolio is bigger than it really is. What they USED to have 20 years ago ain’t what it is NOW!
It’s a dangerous game and some boomers will be OK, but others won’t. That looming crisis means people are forced to think again – long and hard – about their financial futures.
People are developing policies and programs to help boost those Americans’ savings and that’s a great thing. I’m fired up that my company and my people are going to be out front helping people avoid a rude awakening if they don’t get the Willy Wonka-like “Golden Ticket” inheritance.
Plan now. Take action. Help yourself and protect yourself. Get to a point where any inheritance is gravy, not monies you must have to scrape by.
I challenge you all to get to that point. That should be the goal!
The worst thing you can do is wait around with no real integrated plan. Shouldn’t your future financial security be a priority? If it’s not, change that mindset now!
For more information about Andy Albright, please visit Andy’s Web site.