US boomers are refusing to give their $84 trillion in real estate, wealth away to their adult kids

[1srelluc]

https://finance.yahoo.com/news/us-boomers-refusing-84-trillion-114400155.html?guce_referrer=aHR0cHM6Ly93d3cuYXIxNS5jb20v&guce_referrer_sig=AQAAADuw8BvVhEkKp_PJcTiZjoyHw8oj9cfYY020E4yzhSA4wCRAxoFfPuJTM62saYqaavim9cMqcEXWuhvlubi0UxdzlUALTE5d58L9QOnC_eU0rZNCAd5edDeAfQcSLlIwjHlTj9_ZRg39MMnQovq-NH_3a41pDOAC-Tlu6ygyZTQb

In the course of the next 20 years, an astounding $84 trillion is expected to change hands as older Americans pass assets on to younger generations.

It's been dubbed the Great Wealth Transfer, and a lot of younger people are no doubt hoping to take part in it.

But a recent survey finds that younger Americans may not be in line for the large inheritances they're expecting.

A good 45% of wealthy baby boomers (defined as those with more than $1 million in investable assets) want to keep their money to spend in their lifetime, compared to just 15% of wealthy millennials and 11% of wealthy Gen-Xers. And that could have broad economic impacts.

Why boomers are hanging onto their money​

Despite making up only 21% of the U.S. population, baby boomers hold half of the nation's wealth, according to Visual Capitalist. Yet, it’s not a given that their money will be passed down to future generations.

A 2024 Northwestern Mutual survey found that only 22% of baby boomers intend to leave an inheritance to younger generations. And only 11% of boomers say that leaving a gift for their children or future generations is their single most important financial goal.

Baby boomers may be so unconcerned with passing on assets that 40% haven't even put together a will yet. And for 17%, the reason stems from being unsure whom they want to leave their assets to.


Just as the FIRE (financial independence, retire early) movement has gained traction in recent years, so too has the "die with zero" philosophy, which has people spending down their wealth in their lifetime rather than leaving money behind.

But another reason baby boomers may be less focused on leaving inheritances is that they're grappling with high costs of their own.

Inflation has been steep in recent years, forcing many older Americans to raid their savings to a larger degree to keep up with their costs. And then there's health care and long-term care to consider.

In 2024, Fidelity estimated that the typical 65-year-old could expect to spend $165,000 on health care in retirement, not accounting for long-term care — an expense that 70% of adults who survive to age 65 are likely to need.

Uh-huh, let's check back when Gen-X is 70 years old and see how many of them are pinching pennies so their kids get a larger inheritance (which is the wrong way to transfer wealth anyway).

I get the feeling that reaching retirement will change a lot of opinions. So easy to say now when you think you are many decades away from dying.

"Expecting" any kind of inheritance sets a person of any generation up for disappointment. It's certainly not a sound basis for financial planning.

Is it surprising that these are likely some of the same dirtbags complaining that they shouldn't have to pay their own student loans.

 

[odanny]

I love hearing stories of wealthy parents telling their kids they get "X amount of dollars" and the rest is going to charity. That's how you raise kids to be successful, it's not like these parents have not already done everything possible to make sure their kids are successful, including the best schools and no debt.

Waiting for your parents to die so you inherit their wealth is a major life fail.

 

[WorldWatcher]

Just to nitpick, the thread title says real estate when in actuality we're talking retirement assets.

It's not that boomers are being greedy, it's that we (I'm at the end of the boomer years) realize the costs of retirement in the modern age are high, VERY HIGH. Not only are you trying to maintain a standard of living, you have to project medical costs and hope to God you can afford Long Term Care in your elder years if you get there.

A few years ago we went through a decade long degenerative illness with my wife's Mom, we're in Virginia and she was in California, but as the eldest her Mom was bound and determined that she would be the executor of her finances. (Another brother dealt with medical, and another sister in the area provide what in person support she could.) But at the end of the day it was hard, really hard. Both from a providing care standpoint and financially.

So ya, we're (my wife and I) conserving out "wealth" as we transition to retirement this year. That means funding not only Medicare, but Medicare Gap Insurance, Vision, Dental, and Pharmacy. That means upgrading out current Long Term Care policies. We're lucky enough where we will have enough other revenue to maintain a standard of living without having to touch 401K's for quite some time. Many though look at retirement and NEED that 401K money to live on and so convert it to a pension. If things go well, we'll still have something to pass to the kids. Those that have to take annuities to survive - not so likely.

WW

 

[DGS49]

I'm 75, married, and have one son who, largely due to a divorce, has a lot of economic "challenges." My wife and I have enough "money" socked away that we could literally support him and our grandchildren for the rest of their lives.

The question becomes how to pass our estate along in a way that doesn't encourage irresponsible spending and behavior on his part (he is early 40's). He has gone through a number of small business failures, and intermittently walked away from excellent jobs over slight and imaginary issues.

We have wills and our son will get every penny that is left over when we kick the bucket. I don't know if other people see it this way, but a disappointment in MY life was that by the time my father passed away and we five "children" got our modest inheritance, we had no need of it. Getting it earlier in life would have been a lot more helpful. Between my wife and I, he will probably not get his inheritance until he is at least 60 years old. It would be a pity if he had to wait that long.

Where else would we send our estate?

 

[WorldWatcher]

I love hearing stories of wealthy parents telling their kids they get "X amount of dollars" and the rest is going to charity. That's how you raise kids to be successful, it's not like these parents have not already done everything possible to make sure their kids are successful, including the best schools and no debt.

Waiting for your parents to die so you inherit their wealth is a major life fail.

Cases like that - I'm assuming - are pretty rare.

Most parents are gong to want to pass along what they can to their kids. Be it "wealth", be it the family home, helping seed money into the grand kids college fund, etc.

WW

 

[OhPleaseJustQuit]

.

Never having had children, my assets -- real estate, precious metals and stocks -- will be divided between my church and a maternity home which gives needy women the ability to choose life for their unborn children by housing, feeding, educating and spiritually guiding them for a very substantial length of time.

I will die happy, knowing this.


.

 

[Votto]

I love hearing stories of wealthy parents telling their kids they get "X amount of dollars" and the rest is going to charity. That's how you raise kids to be successful, it's not like these parents have not already done everything possible to make sure their kids are successful, including the best schools and no debt.

Waiting for your parents to die so you inherit their wealth is a major life fail.

And government will be waiting to cherish their children not having any inheritance, thus making them poor, while government provides them with a shit economy to grow up in and massive inflation to be the slaves of the state.

The wet dream of every Left winger.

Proverbs 13:22 "Good people leave an inheritance to their grandchildren, but the sinner’s wealth passes to the godly."

The key is divorcing society from faith and wisdom and embracing selfishness instead.

 

[Zincwarrior]

Sounds like some good old fashioned self help is needed!

 

[odanny]

Cases like that - I'm assuming - are pretty rare.

Most parents are gong to want to pass along what they can to their kids. Be it "wealth", be it the family home, helping seed money into the grand kids college fund, etc.

WW

"X amount of dollars" means the kids get something, if you told them at a young age this would happen and they are responsible for their own wealth they just might respond accordingly as adults, even if you planned all along on giving them all your money.

 

[Votto]

Sounds like some good old fashioned self help is needed!

I think with Left wingers now trying to shoot CEO's and Presidents while being praised on social media for it in mass, that they would have very little problem now killing off their 1%'er parents as well if it meant putting money in their collective pockets.

Well said.

 

[OhPleaseJustQuit]

I think with Left wingers now trying to shoot CEO's and Presidents while being praised on social media for it in mass, that they would have very little problem now killing off their 1%'er parents as well if it meant putting money in their collective pockets.

Well said.

.

Hopefully, no more than that one, who is known to be viciously violent on this board and never seems to get called out for it. Has admitted he is deeply mentally ill as well, hearing voices.


.

 

[WorldWatcher]

"X amount of dollars" means the kids get something, if you told them at a young age this would happen and they are responsible for their own wealth they just might respond accordingly as adults, even if you planned all along on giving them all your money.

This isn't an inheritance thing, but... It's about setting expectations.

I remember when the kids were in Middle/High School and we were sitting around the table after dinner. They were probably 8th and 9th grades respectively.

We'd been saving for college and we figured we'd be able to cover 2 years at a University, they'd be mostly on their own for the other 2 years. But there were strings attached. They could go into any degree field they wanted, but if they wanted us to help - they would have to show that they would be employable. Basically "If you want a degree in medieval English literature - go for it, but you are on your own".

They are now in their mid-30's and my son is an IT Systems Admin and my daughter is an attorney. They don't "need" anything from us, so our goal is not to be a burden.

WW

 

[RetiredGySgt]

we don't have a lot of money but due to disability live well. The kids will get out life insurance and the house.

 

[Votto]

This isn't an inheritance thing, but... It's about setting expectations.

I remember when the kids were in High School and we were sitting around the table after dinner. They were probably 8th and 9th grades respectively.

We'd been saving for college and we figured we'd be able to cover 2 years at a University, they'd be mostly on their own for the other 2 years. But there were strings attached. They could go into any degree field they wanted, but if they wanted us to help - they would have to show that they would be employable. Basically "If you want a degree in medieval English literature - go for it, but you are on your own".

They are now in their mid-30's and my son is an IT Systems Admin and my daughter is an attorney. They don't "need" anything from us, so our goal is not to be a burden.

WW

You sound like a Republican all of a sudden.



Ok, switch back when talking about taxpayer money, that people have a "right" to all of the free handouts without expectation.

Carry on.

 

[WorldWatcher]

You sound like a Republican all of a sudden.

I've been a republican since I first voted in 1978, problem is the cultists have temporarily co-opted my party, hopefully it's a temporary situation and sanity can return in a few years.

WW

 

[Zincwarrior]

Our kids already make more than we do.
Alas both mine the wife's parents have passed. Dad was able to leave the Daughter a hopped up little car, his last engine work.

 

[Votto]

I've been a republican since I first voted in 1978, problem is the cultists have temporarily co-opted my party, hopefully it's a temporary situation and sanity can return in a few years.

WW

All of a sudden you want to now support giving trillions to places like Guatemala so that they can fund having sex changes for babies if they somehow get passed the abortion mills that are also funded by USAID.

Hilarious.

Methinks maybe switching cults might be the best move.

 

[WorldWatcher]

All of a sudden you want to now support giving trillions to places like Guatemala so that they can fund having sex changes for babies if they somehow get passed the abortion mills that are also funded by USAID.

Hilarious.

Methinks maybe switching cults might be the best move.

Where did you get such a silly idea as that I support giving Trillions to places like Guatemala?

Do I recognize that aid is a fundamental part of foreign diplomacy which enhances our trade and access to natural resources we may not have? Welcome to a world economy.

Idiot isolationist gave us WW I and WW II.

WW

 

[Votto]

Where did you get such a silly idea as that I support giving Trillions to places like Guatemala?

Do I recognize that aid is a fundamental part of foreign diplomacy which enhances our trade and access to natural resources we may not have? Welcome to a world economy.

Idiot isolationist gave us WW I and WW II.

WW

Of course, I was being satirical regarding the amount, it's the only way I can cope with this lunacy you support.

The left only deserves being mocked from here on out 24/7 as they have no interest in true debate because they have no real interest in truth or sanity.

Enough!!!

 

[Zincwarrior]

Of course, I was being satirical regarding the amount, it's the only way I can cope with this lunacy you support.

This is kind of off topic yes?