Quote:
Originally Posted by Slava
The wealth transfer he refers to is the baby boomers passing their wealth to the next generation, which is considered to be the largest wealth transfer between generations in history. It brought up constantly at financial advisory meetings of one sort or another. For a few reasons I think that its largely bunk....but thats another story.
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Nope. The wealth transfer is TO the baby boomers from their parents. (The so-called Greatest Generation). The parents of the baby boomers lived through the depression and WWII, and they were savers. So much so that when they begin to die there will be a huge transfer of wealth to their children, the baby boomers.
The oldest baby boomers are just starting to reach retirement age, and their parents are in their 70s/80s. When that generation dies, they'll pass on money, on average.
The way things are going now, on average I wouldn't be surprised if the baby boomers pass on a house with a huge mortgage and nothing else on average.
Those of us in younger generations will get the privilege of paying for their medical care and pensions when their older as well. Neither of which they put in enough to pay for during their prime working years.