Interestingly, after a steeper catchup period, they both now track at the same slope as before.From the timing, probably the great recession of 2008-ish. You can see the drop in wealth and recovery process afterwards.
Interestingly, after a steeper catchup period, they both now track at the same slope as before.From the timing, probably the great recession of 2008-ish. You can see the drop in wealth and recovery process afterwards.
From the timing, probably the great recession of 2008-ish. You can see the drop in wealth and recovery process afterwards.
Money is going straight to descendants, I would think.
(either that or getting stolen somehow lol)
It's just odd that the Gen X'rs seem singled out here, because the equivalent point in time for Boomers is still a steady rise. Not even a small dip.
It's just odd that the Gen X'rs seem singled out here, because the equivalent point in time for Boomers is still a steady rise. Not even a small dip.
Baby Boomers to Millennials is everyone born from the 40s onwards right?
I would have thought that encapsulated nearly everyone in the US, but the 2019 percentages don't seem to even nearly add up to 100%. Am I reading it right? Where is the rest of the wealth?
Baby Boomers to Millennials is everyone born from the 40s onwards right?
I would have thought that encapsulated nearly everyone in the US, but the 2019 percentages don't seem to even nearly add up to 100%. Am I reading it right? Where is the rest of the wealth?
There's still a decent amount of silent generation folks. Bernie and Biden are both from that generation.
easier to weather economic hard times when you already have a significant pad of capital, which people build up over time and boomers as a cohort likely had much more of than gen Xers at that time and at that time in their livesIt's just odd that the Gen X'rs seem singled out here, because the equivalent point in time for Boomers is still a steady rise. Not even a small dip.
there are still a lot of of silent generation folks chilling. Generally born up until 45 is considered silent gen.
also I suppose some gen z folks account for a bit of it.
There's still a decent amount of silent generation folks. Bernie and Biden are both from that generation.
Yep a lot of gen x'ers at that point had just recently bought houses with, "ambitious" mortgage rates during the post 9/11 boom. Late 30s especially then were young families I'd assume also which is a notoriously expensive time in anyone's life. Just a confluence of a bunch of factors (and culprits, notice I'm not even mentioning the criminal financial industry practices of the time).easier to weather economic hard times when you already have a significant pad of capital, which people build up over time and boomers as a cohort likely had much more of than gen Xers at that time and at that time in their lives
Thanks for this genuine laugh in an otherwise wholly depressing thread.We are probably going to see the same thing in Canada as well, and possibly worse as Boomers account for a large proportion of our population. Hopefully at the close, Boomers will prove themselves less selfish than their lives to date have indicated and they will invest in a sustainable legacy rather than squander it on longevity and vanity.
Inheriting real estate (that boomer parents got for really cheap in the 20th century) is like the biggest wealth transfer engine among generations so I don't get this reply tbh
I don't expect to receive much via inheritance. It will likely be a few hundred thousand dollars at most.
LOLI don't expect to receive much via inheritance. It will likely be a few hundred thousand dollars at most.
Boomers being recession proof is alarming.It's just odd that the Gen X'rs seem singled out here, because the equivalent point in time for Boomers is still a steady rise. Not even a small dip.
They are not date aligned, they are age aligned. There is a dip for boomers, top right. It's just smaller. This chart is just weird.It's just odd that the Gen X'rs seem singled out here, because the equivalent point in time for Boomers is still a steady rise. Not even a small dip.
Medical costs usually eat up everything before death. My father passed from cancer a few years ago and we still owe money for mortgage payments, healthcare costs, etc. He worked six days a week for ~40 years and died with a negative balance in his bank account.
Outside of healthcare, those with money in retirement mostly just spend it all.
as the son of baby boomers, I don't expect any wealth transfer because of the costs associated with a long period of retirement.
unfortunately our generation ain't getting that nice long retirement.
It's all going to be spent on retirement homes and end of life care.I have to say, I'm really, really curious what happens when the Boomers die off. That money is going to other people and I'm not sure Gen Xers will just stow it away like their parents did.
I think it makes a huge difference if you were able to start a career before the recession or not. My high school friend group spanned the gap (graduating between 2006 and 2012 mainly) and the ones that graduated before the recession are hugely more likely to have stable careers and own property.I'm curious how the data would look if you subdivided millennials into smaller groups, like born in the 80s vs born in the 90s. I and the millenials I grew up with seem to he doing fine - own homes even if a little later in life than our parents did, sizable student loan debt but privileged enough to be able to make the payments without living paycheck to paycheck. Of course my social group is partly determined by my privilege, but some of it is also just who was in my high school. I wonder if younger millennials are having an even tougher time of it than millennials as a whole?
They are not date aligned, they are age aligned. There is a dip for boomers, top right. It's just smaller. This chart is just weird.
It's all going to be spent on retirement homes and end of life care.
Also even if the property wealth were to just straight transfer, it's going to be coming at a much later point in millennials' lives, which means it will have less time to compound, which is one of the major points of this article.The most common trend right now are elderly people selling off their wealth in order to find themselves in assisted living situations. That's not free and it's almost solely paid for by the profits of downsizing. The idea that children are going to inherit property comes with the mindset that the elderly are dying in their homes which isn't the case.
In a lot of cases, mine included, the property we grew up in will be sold and half the proceeds will be gone, the remainder of which may, emphasis on may, help us get out of the debt that we've been under for 20-30 years, a situation leaving people receiving their inheritance with no credit and wealth, and while they have no debt, their situation is the same as it ever was, needing to work forever until they die.
The lucky ones get a small windfall from the proceeds or...as ghoulish as it sounds, do profit because their parents died in their homes with no further ambitions on what to do after retirement.
But most people are fucked.
And that's ignoring property that was bought cheap and never renovated, property that needs more work than is worth, property where the land is literally more valuable than the actual home on top of it...
The fact that your parents will die and give you their leftovers does not automatically put you at an advantage.
Shit that's depressing. I'm from the north but I lived in the deep south and Texas for a decade after Katrina. I know loads of people in their 30s in Mississippi, New Orleans, and East Texas who are able to afford a house. Know someone in Wilmington who bought a 3 br for 91,000. Where in the south are you?Guess it depends on age/location/etc. I'm in the South, have been my whole life, and at 30, I don't personally know a single person who owns a house. Most of my friends have over 10k in student loans of some sort, though.
Also even if the property wealth were to just straight transfer, it's going to be coming at a much later point in millennials' lives, which means it will have less time to compound, which is one of the major points of this article.
Money is going straight to descendants, I would think.
(either that or getting stolen somehow lol)
My grandmother passed away in September. She was in the nursing home for two months. It cost ~24K. If she had lived another year, her retirement accounts would have been completely drained.
Those thinking wealth will transfer in its entirety are fooling themselves. A lot of it will burn, quickly.
Reverse mortgages are eating inherentences as well as increasingly expensive healthcare for everyone especially the aging.
Yup. Honestly, using the 300k example from earlier, that is a wonderful down payment for something meaningful for a family of 4 in your late 20's, early 30's. Getting it at 50 is just too late.