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Re: Study: 43% won't have enough in retirement
Old 06-24-2006, 09:43 AM   #21
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Re: Study: 43% won't have enough in retirement

In the late 70s my mom and dad went to a cocktail party. Someone they new casually told them they could retire if they had $15,000 saved and a paid-for house. My mom was a teacher with a small pension, age 55. Dad was a salesman with, well, nothing, age 60.

They retired and their CDs were earning 18-20% for a while. They were getting by just fine. When interest rates dropped, SS kicked in, and they did OK for a few more years.

The inevitable happened, and they ran out of money. My brother and I, after having been asked for advice which was repeated ignored, partially supported them til they died. Our support, given with love and without hesitation, surely had an unspoken dollop of "told you so." Their estate was trivial, mostly modest home equity reduced by unpaid bills, fees, etc. Fortunately, their last few years were secure and comfortable, if not luxurious.

I don't think that history's "greatest transfer of wealth ever" was meant quite like that. Hoping to reverse the trend for my kids and grandkids.
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Re: Study: 43% won't have enough in retirement
Old 06-24-2006, 10:20 AM   #22
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Re: Study: 43% won't have enough in retirement

Quote:
Originally Posted by Delawaredave
I suspect the overall averages are "propped up" by early baby-boomers that are 55-65 now that have "good old days" financial circumstances:
* * - Defined benefit pensions
* * - Savings mentality
* * - Inheritances from depression-era parents
Being (DW/me) 58 years of age, we can confirm that point #2 is correct, in our case.* Points #1 & 3 are not.* Regardless of that, point #2 is going to allow us to retire next May (age 59).* It may not be "ER" (according to most folks on this board), but it's certainly earlier than I expected when I started working "last century"...

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Re: Study: 43% won't have enough in retirement
Old 06-24-2006, 10:22 AM   #23
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Re: Study: 43% won't have enough in retirement

Quote:
Originally Posted by 73ss454
I'm 57 with no pension and no inheritances.

The "general public" behind me IMHO will have the greatest generational wealth transfer ever.* I think that we as Boomers have 50 to 100 % or more than our parents.* At least in my case.
cnn money http://tinyurl.com/juevj shows generational transfer at $45 trillion between 1998 & 2052

thanx mom


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Re: Study: 43% won't have enough in retirement
Old 06-24-2006, 12:35 PM   #24
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Re: Study: 43% won't have enough in retirement

Quote:
Originally Posted by Rich_in_Tampa
Their estate was trivial, mostly modest home equity reduced by unpaid bills, fees, etc. Fortunately, their last few years were secure and comfortable, if not luxurious.
I don't think that history's "greatest transfer of wealth ever" was meant quite like that. Hoping to reverse the trend for my kids and grandkids.
If they'd had an inheritance to pass on, would you have needed it or even wanted it?

With people living longer across all generations, by the time the elders are ready to pass on an inheritance it's quite possible that the second generation won't need it. And who wants to kill the motivation of the third generation by dumping a ton of cash on their unready heads?

We tell our kid that her inheritance will be in the form of her parents not having to move in with her. When she's 90 years old.

By then the third & fourth generations won't need, want, or be ready for our portfolio either. So I guess the best approach would be for us to spend as much of it as we can...

Quote:
Originally Posted by lazygood4nothinbum
shows generational transfer at $45 trillion between 1998 & 2052
Kinda puts that national debt into perspective, doesn't it?

But at that scale of numbers I also find it hard to believe that the inheritance tax won't come back with a vengeance.
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Re: Study: 43% won't have enough in retirement
Old 06-26-2006, 06:44 AM   #25
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Re: Study: 43% won't have enough in retirement

Quote:
Originally Posted by 73ss454
I'm 57 with no pension and no inheritances.

The "general public" behind me IMHO will have the greatest generational wealth transfer ever.* I think that we as Boomers have 50 to 100 % or more than our parents.* At least in my case.
I am at end of baby boomers (48) - and I agree most boomers have substantially more total wealth than our parents.

However nearly all of the "children of boomers" that I know do not / will not have the jobs / wherewithal to "match their parents" in wealth generation - they will be poorer.

Maybe inheritances will offset that.* *I just think these "intergenerational wealth" reports exaggerate the effect.

There will be some very interesting "demographic effects" over next decade - I don't think anyone really knows (certainly not me....)
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Re: Study: 43% won't have enough in retirement
Old 06-26-2006, 07:21 AM   #26
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Re: Study: 43% won't have enough in retirement

Quote:
Originally Posted by Nords
If they'd had an inheritance to pass on, would you have needed it or even wanted it?
It's a fair question, but not so simple, maybe. I would have wanted the resources there first and foremost so they could have avoided the worry and embarassment of having to turn to us for help (no matter how comfortable and guilt-free we tried to structure it). But also, as the first generation in our family to jump ahead of a very modest income, I would love to leave my kids and grandkids with enough to at least make good lifestyle and educations a likelihood. We will probably be just fine for our own retirement but I've no idea how much will be left for the kids.

A final ironic post script on my parents' situation is that about a year after they died, we received a $30K settlement on a class action lawsuit against my dad's former employer. Brother and I shared it, wishing it could have come a couple of years sooner. We agreed that the folks would have been pleased to know that we were able to use this money -- covered a year of college for my son.
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Re: Study: 43% won't have enough in retirement
Old 06-26-2006, 09:08 AM   #27
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Re: Study: 43% won't have enough in retirement

Quote:
Originally Posted by Nords
So I guess the best approach would be for us to spend as much of it as we can...


Yeah, Yeah, Diamond Jim. The only way that's going to happen is that Mrs. Nords steps up to the plate big-time. 8)

The above smart-ass remark brought to you by Jarhead, who can identify with Rich's background.

Not that there's anything wrong with being frugal (tight as bark on a tree).

Happy Longboarding.

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Re: Study: 43% won't have enough in retirement
Old 06-27-2006, 03:56 PM   #28
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Re: Study: 43% won't have enough in retirement



Quote:
Originally Posted by Delawaredave

. . . I just think these "intergenerational wealth" reports exaggerate the effect.
As if on cue, McNews weighs in with supporting data :
http://www.usatoday.com/money/perfi/...eritance_x.htm

Headline: Boomer inheritances shrink as parents live longer, health care costs rise

Partial text:
. . . "Inheritances are not likely to bail the boomers out," says John Rother, director of policy and strategy for AARP.

What about the trillions of dollars in wealth that boomers were supposed to receive? Experts have estimated that more than $40 trillion will be transferred from one generation to another over the next 60 years. Boomers are expected to receive $7 trillion to $10 trillion.

But the primary beneficiaries will be families who are already well-off, AARP says. Families with a net worth of $450,000 or more received nearly two-fifths of all inheritance dollars, AARP said." . . .


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Re: Study: 43% won't have enough in retirement
Old 06-27-2006, 09:09 PM   #29
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Re: Study: 43% won't have enough in retirement

Quote:
Originally Posted by Jarhead*
Yeah, Yeah, Diamond Jim.* The only way that's going to happen is that Mrs. Nords steps up to the plate big-time. 8)
Not that there's anything wrong with being frugal (tight as bark on a tree).
How old does one have to be to recognize that reference?!?

I may be able to squeeze until the buffalo whimpers (another old reference) but spouse makes me feel like a dilettante. And my legendary FIL makes us both feel like we're slinging simoleons with reckless abandon...

Quote:
Originally Posted by Jarhead*
Happy Longboarding.
Thanks-- and we're trying to figure out how to do it with our new water-resistant digital camera... not waterproof and unfortunately not buoyant, but we're working on it.
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