Boomer Wealth

[Koolau]

College students.
Stay at home mom/dad.

This myth of the lazy kids is getting old.

Okay, then call it "unmotivated" if that helps. Lazy is a much more judgemental word. Unmotivated is the way I felt as I left the w*rk force. I no longer needed to w*rk and no longer saw any point in it. I was unmotivated. I think that could be a legitimate attitude at any age. Having said that, such an attitude in youth can be problematic (especially if mom and dad don't open the pocket books.)

Then again, there's the old adage: "They don't pay you to like it or be fulfilled by w*rk - they pay you to do it."

 

[Aerides]

again here we go "why those kids today"....it's a tired old trope and it's ugly.

The data doesn't support it, only random anecdotes that your choice of media felt click-baity enough to serve up to you. It fosters a generational divide which is unhealthy for everyone.

Either you decide to feed off negativity, or embrace a positive outlook for the future.

One of these leads to a better overall well being, so I know which one I'm picking.

 

[Koolau]

again here we go "why those kids today"....it's a tired old trope and it's ugly.

The data doesn't support it, only random anecdotes that your choice of media felt click-baity enough to serve up to you. It fosters a generational divide which is unhealthy for everyone.

Either you decide to feed off negativity, or embrace a positive outlook for the future.

One of these leads to a better overall well being, so I know which one I'm picking.

I disagree, but don't consider it worth a debate. Can't recall the last time I changed anyone's mind - with or without data. YMMV

 

[Major Tom]

Okay, then call it "unmotivated" if that helps. Lazy is a much more judgemental word. Unmotivated is the way I felt as I left the w*rk force. I no longer needed to w*rk and no longer saw any point in it. I was unmotivated. I think that could be a legitimate attitude at any age. Having said that, such an attitude in youth can be problematic (especially if mom and dad don't open the pocket books.)

The lack of enthusiasm I have experienced in retirement for working and making money has been a surprising change. I was very motivated when in the workforce. To experience the exact opposite attitude towards remunerated toil in retirement has been eye-opening. I was so energetic and enthusiastic about making my mark in the world as a kid. I'm sure glad I didn't suffer from severe lack of motivation when young. It must be crippling.

PS - I am still very motivated to do things - just not the sorts of things other people want to pay me for doing.

 

[Chuckanut]

I am giving my kids some of their inheritance a bit early. In these times of high housing costs they need the help. Once that is done, I will feel much better about going SKIing. (Spending the Kids Inheritance*.)

* borrowed without permission from PB4

 

[slowsaver]

They said that American boomers are 1% of the world's population but control 1/7 of the worlds wealth.

They mentioned the lack of younger people willing to work and pointed out why work if your parents will bail you out while you are waiting for them to croak.

To be honest, the only reason my Boomer dad had any money when he died is because *his* parents died and left him money.

(That's not to say my dad didn't work -- he did. He was just very bad at managing money, and avoiding 'splurge' purchases on his hobbies (old cars))

Isn't it always true that the oldest (living) generation always has the most wealth, regardless of their work ethic?

 

[Gumby]

I expect that by the time they are 63, a great many of the Gen Z'ers will have as much as I have today (inflation adjusted). In fact, many of them will do much better, since they won't have started out so deeply in the hole as I had to.

 

[jollystomper]

Off the top of my (still have hair, but that does not make me any smarter ) head, I believe the highest boomer birth rates were in the 1956-1960 range, with 1957 being the peak. Those are the folks from 62-66 years old right now, who entered the job market as it started to grow, and as technology started to take off.

The biggest driver of wealth in the last 50 or so years has been technology, and the finance aspect associated with it. A lot of boomers were able to get in on the ground floor. In addition, we have benefited the best from the market over the last 40-45 years.

So to me, it makes total sense that Boomers would hold the bulk of the wealth. We had the ability to get in on the ground floor, and ride it, in various ways, the longest.

As for "is the younger generation not working and lazy or not", all I can say is once again... .

 

[Music Lover]

When / Will the baby boomers start selling off inflated assets ? (houses, cars, etc)

Watched this land plot in town I grew up: First farm, then developed in 70's into Middle School to accommodate the boomers. Then there were excess school buildings after boomers, so it was sold. Then became office space. Now it is a nursing home housing the boomers.

At some point all the nursing homes won't be needed, nor all the 2nd homes, nor all the collector cars, nor boats.....

And if they are still needed, the next generation won't be able to afford it - have read:

"When boomers were around the same age as millennials today, they held roughly 22% of the nation's wealth compared to Millennials' 7%"

A lot of the collectors are aging out and stuff that used to be valuable is slowly becoming worthless because no one wants it. Stamps, sports cards, coin collections for example. Sure, the rare stuff may hold its value but the majority isn't worth anything anymore.

The documentary "Jack of All Trades" explores the baseball card boom and bust.

 

[justlikebike]

Living without children

I am the youngest of 4 children. DW and I do not have kids. When we set up our will it was based on who we enjoy spending time with, not blood relatives. I have heard the following statement from my BIL twice now. He has suggested to his kids to "suck up" to us so they can inherit more money. Neither of them are in our will as they have never once contacted us for any reason. We had a very challenging time deciding who to put in our will. Neither of us are close to our siblings, so have no really desire to leave anything to them or their kids. This may cause some issues when we pass away as I am sure there will be some expectations, but I just can't leave it to people that really don't care about us.

 

[2tswhite]

I am giving my kids some of their inheritance a bit early. In these times of high housing costs they need the help. Once that is done, I will feel much better about going SKIing. (Spending the Kids Inheritance*.)

* borrowed without permission from PB4

We did the same this year. We're all here in greater Boston = cha-ching!!!!

 

[RobbieB]

Off the top of my (still have hair, but that does not make me any smarter ) head, I believe the highest boomer birth rates were in the 1956-1960 range, with 1957 being the peak. Those are the folks from 62-66 years old right now, who entered the job market as it started to grow, and as technology started to take off.

The biggest driver of wealth in the last 50 or so years has been technology, and the finance aspect associated with it. A lot of boomers were able to get in on the ground floor. In addition, we have benefited the best from the market over the last 40-45 years.

So to me, it makes total sense that Boomers would hold the bulk of the wealth. We had the ability to get in on the ground floor, and ride it, in various ways, the longest.

Yup, that's me!

Graduated 1979 with an Electrical Engineering degree and worked in Industrial Automation my whole career. I was never worried about getting a job. Been fired as many times as I quit.

Go ahead, make my day, fire my ass! I always ended up with more dough anyway -

 

[Lewis Clark]

I am the youngest of 4 children. DW and I do not have kids. When we set up our will it was based on who we enjoy spending time with, not blood relatives. I have heard the following statement from my BIL twice now. He has suggested to his kids to "suck up" to us so they can inherit more money. Neither of them are in our will as they have never once contacted us for any reason. We had a very challenging time deciding who to put in our will. Neither of us are close to our siblings, so have no really desire to leave anything to them or their kids. This may cause some issues when we pass away as I am sure there will be some expectations, but I just can't leave it to people that really don't care about us.

We have no children and feel the same way. I see no reason to leave assets to family just because they are blood relatives. They are your assets. Dispose of them as you wish.

 

[Luvtoride]

I am giving my kids some of their inheritance a bit early. In these times of high housing costs they need the help. Once that is done, I will feel much better about going SKIing. (Spending the Kids Inheritance*.)

* borrowed without permission from PB4

I love that…I think I will borrow that too!

 

[Finance Dave]

I am the youngest of 4 children. DW and I do not have kids. When we set up our will it was based on who we enjoy spending time with, not blood relatives. I have heard the following statement from my BIL twice now. He has suggested to his kids to "suck up" to us so they can inherit more money. Neither of them are in our will as they have never once contacted us for any reason. We had a very challenging time deciding who to put in our will. Neither of us are close to our siblings, so have no really desire to leave anything to them or their kids. This may cause some issues when we pass away as I am sure there will be some expectations, but I just can't leave it to people that really don't care about us.

+1

We also have no kids. We also focused our giving on "causes" and who we enjoy spending time with. I also selected three people who I "admire the most" in my life and plan to leave them a small amount. But the majority of anything we have left will go to charity. I have already told people verbally who are in our will that they will get something modest, and I've told them generalities about how much it will be...but also told them that if I pre-decease my DW then her financial needs come first and she has been given instructions for giving to them. I have these in writing and signed them, as I don't want any heirs to think SHE made the decision about how much to give them and therefore hold any negative feelings against her...they need to be upset with ME if anyone.

 

[Gumby]

We also have no children, and I have been pondering what to do with our money. If it were my decision alone, I'd give it all to my favorite of our eight nephews and one niece. He and his wife are also childless. And I would suggest that he leave it to his favorite niece or nephew (preferably childless), so that it doesn't get dissipated. However, since I will likely predecease the young wife, it will ultimately be her decision. Maybe she'll spend it all on Lorenzo the pool boy.

 

[Koolau]

Now that we have had a chance to spend quality time with our only granddaughter, we're finding more and more ways to BTD before we croak! We're paying for her Montessori school which definitely qualifies as BTD. BUT we get to see the results which we won't get to do once we're gone. YMMV

 

[Luvtoride]

Now that we have had a chance to spend quality time with our only granddaughter, we're finding more and more ways to BTD before we croak! We're paying for her Montessori school which definitely qualifies as BTD. BUT we get to see the results which we won't get to do once we're gone. YMMV

Koolau, that’s a great attitude and exactly how we view our assets and wealth transfer. Not to hijack this thread but it’s the philosophy of the book Die With Zero which many of us have read and has been discussed extensively here.
Next up for us is paying for summer sleep away camp for our 2 granddaughters.

 

[swakyaby]

Maybe she'll spend it all on Lorenzo the pool boy.

[emoji23]

 

[Out of Steam]

Off the top of my (still have hair, but that does not make me any smarter ) head, I believe the highest boomer birth rates were in the 1956-1960 range, with 1957 being the peak. Those are the folks from 62-66 years old right now, who entered the job market as it started to grow, and as technology started to take off.

As one of a married couple both in this age range, it seems increasingly likely that we will spend down our retirement savings on long-term care and high-cost senior housing options after age 75.

I'd prefer not to live in a suburban single-family house much past 75, but the options for modern housing suitable for older seniors are eye-wateringly expensive--even without any care or meals included.

 

[bada bing]

As one of a married couple both in this age range, it seems increasingly likely that we will spend down our retirement savings on long-term care and high-cost senior housing options after age 75.

I'd prefer not to live in a suburban single-family house much past 75, but the options for modern housing suitable for older seniors are eye-wateringly expensive--even without any care or meals included.

Same age range here. There's quite a few of us here. I went through the exercise of finding, vetting and getting my mom moved into a CCRC a couple years ago. It was a very good exercise, as that is the most likely destination for me. I hope it's at least 20 years off, but you never know. I have sort of mentally earmarked $1M in current portfolio value to pay for that eventuality.

There should be a modest inheritance left when I check out for my nieces and nephews to develop grudges over. But I may elect to leave it to the local cat shelter so they can be pissed at me, rather than each other.

 

[ncbill]

I am giving my kids some of their inheritance a bit early. In these times of high housing costs they need the help. Once that is done, I will feel much better about going SKIing. (Spending the Kids Inheritance*.)

* borrowed without permission from PB4

Yep, I'm going to have to do the same for my kids.

My oldest is currently looking at $400k houses that only a few years ago were closer to $200k in an area I wouldn't describe as HCOL.

 

[ncbill]

That's because there are more of us.

Woo-hoo, war is over and I didn't get killed, let's procreate!

Yep, as dad told me he flew back home from Vietnam to Hawaii for a second honeymoon with mom & I came along 9 months later.

Military rate at their beachfront hotel was $14/day, IIRC...I've still got the receipt here somewhere.

 

[Souschef]

I am giving my kids some of their inheritance a bit early. In these times of high housing costs they need the help. Once that is done, I will feel much better about going SKIing. (Spending the Kids Inheritance*.)

* borrowed without permission from PB4

I gave one of my sons an advance on his inheritance for a down payment on their home.
I then adjusted the POD's to reflect it.

 

[DawgMan]

The lack of enthusiasm I have experienced in retirement for working and making money has been a surprising change. I was very motivated when in the workforce. To experience the exact opposite attitude towards remunerated toil in retirement has been eye-opening. I was so energetic and enthusiastic about making my mark in the world as a kid. I'm sure glad I didn't suffer from severe lack of motivation when young. It must be crippling.

PS - I am still very motivated to do things - just not the sorts of things other people want to pay me for doing.

+1

It took me almost 2 1/2 years to unwind my drive, but I finally got to the place where I have zero motivation to take on any more business. Weird feeling, especially having always been a 100% "eat what you kill" guy. That said, the concept of ever "expecting" an inheritance from my parents was never a thought. While in the end, I did receive a small something when my dad passed, it did not move the needle.

Now today, with 4 kids (2 married so far), 4 grandkids and growing, we are looking at ways to BTD with them (DW is great at this! ). That said, while we believe they have adopted our work ethic values and are all doing well, my guess is they know (but do they expect??) they will have 7 figure inheritances when we are gone.