Heir Today Gone Tomorrow
December 7, 2007
The heirs of many affluent baby boomers, mostly the children and grandchildren of these wealthy boomers, may find themselves with less inheritance than both they and the general public may have imagined.
Historically, this should be the greatest movement of wealth in US history. There are more millionaires today than ever before, and one would assume that most of that wealth will be passed down to today’s boomer children and grandchildren. That is what one might think, but it may not work out like that.
Affluent boomer millionaires, baby boomers worth a few million dollars, will begin to turn 65 soon and many experts believe that as these folks retire they will leave little or no substantial wealth to their children.
The reasons behind this are simple. Many of today’s wealthy boomers are planning a retirement that will last at least twenty years. The retirement plans are often lofty and expensive, which will drain savings that in the past would have been passed down to their children.
In decades past, millionaires often used their wealth in more prudent and diligent ways such as investing in solid stocks and bonds. They were less concerned with their own retirement than they were with providing their children a firm financial footing through inheritances.
Compare that to today’s wealthy boomer who will spend lavishly on his or her own present day needs and wants, and it is easy to see the reason why much of today’s wealth will not be around for the children of these people.
Most experts agree that the best way to preserve some wealth for heirs is to spend time with qualified financial advisors who can set up long term plans and programs