Generational Wealth Transfer Through Advisors
Generational Wealth Transfer
The largest worldwide intergenerational wealth transfer ever will be passed on from baby boomers now to younger generations and Generation X over the next several years. This enormous wealth transfer is taking place at a time when it is projected that half of the current adult population will belong to a generation that has never experienced an economic boom, and will not experience one for the rest of their lives. Baby boomers are living on borrowed money, while Generation X and newer generations are struggling to start or keep a business. In addition, the younger generations have never been so uneducated so badly educated as they are today. These two factors are putting an enormous amount of stress on the ability of the United States to return to its previous financial status.
Many people do not realize that the aging process is actually the cause of this massive intergenerational transfer of wealth. Baby boomers get ahead and others stay in a lower paying job while they age. As a result, those individuals who do receive their inheritance as a result of their parents’ generation get left behind, and those who get left behind do not get ahead. All of this without any of these people knowing how to get ahead.
Technological advances have also played a large role in the generation of wealth that has been created since the Great Depression and all the way up to the present day. All of the technologies we have now were invented during the Boomer generation, and baby boomers actually helped create the Internet, many of the automobiles we drive, and the computer and television we use every day. Without these technological advances, there would not be the computer or the Internet, and we would not be able to have most of the things we own today. Baby boomers are going to have a great deal of inheritance money to pass on to their children in the coming years and it is likely they will get even more than they have right now.
Generational Wealth Transfer Through Advisors
All of the above factors are factors which will continue to effect the generation of wealth in the coming years and decades. Those of us that are still alive today can see the effects already. Grandma is getting older, and she still has plenty of money. However, if you are a Boomer, you can look at your neighbor and see that they are getting much older, and they still have a lot of wealth to pass on to their children.
Now, some might say that since everyone is getting older, there is nothing left for the next generation to pass on, and this is partially true. However, what if you had two children, a boy and a girl, who both grew up in the same house, went to the same college, and their parents both have a high-paying job? The chances are that if both boys and girls married someone wealthy, their children would also inherit a huge amount of wealth from their parents. This is why a massive generational wealth transfer is possible, and it is something which is being discussed more today.
The key point to remember is that no matter who you are, or how old you are, you can use advisors to help you grow your current finances while building your future finances. As our world becomes ever more technical, people need to find ways to stay current with what is going on in the financial world. If you don’t know anything about how your finances work, then you can hire an advisor to give you guidance. These advisors can teach you how to invest, and give you advice about how to plan your finances for the future. By using these experts who are currently wealthy, you can be investing and building your future, today!