Generational Wealth – Fact or Fantasy?
Guest Post by Dennis Miller at Miller On The Money
Generational wealth is assets passed from one generation to another. A family business, stocks, bonds, real estate or other valuables are typical examples. These generally transfer when a family member dies.
This is different from the soft issues like family values, education, love and family, which begin the transfer process at birth and continue through a lifetime.
The Federal Reserve tells us about half of all inheritances are under $50,000, and a mere 2% are over $1 million.
Our friends at WHVP recently wrote a great article on the subject, telling us:
“It’s essential to understand that having family wealth and preserving family wealth are two very different things, and the latter often requires careful and considerate planning. The reality is that around 70 percent of wealthy families lose their wealth by the second generation, and about 90 percent of families lose wealth by the third generation.”
It’s an excellent article directed toward those who have wealth and wish to preserve it for future generations.
The challenge for the middle class is not only using financial discipline in building our own wealth, but also educating our family to do the same – so there is wealth available for those next in line. Quite a task in today’s world for those not in the top 1-2%.
The Rich Get Richer…
Bill Bonner runs the numbers:
“In the period running up to the 1970s, the top 1% got about 8% of national income. Today, it gets 20%.
Incomes for the top 1% have roughly quadrupled since 1970. For the 90% of the middle class, they have been stagnant. And for those with only a high school diploma or less, real incomes have fallen.
If you were born in the 1940s, you were almost certain to earn more than your parents. …. If you were born after 1970, you had barely even odds of earning more than your parents.”
While the middle class may be stagnant, their standard of living has improved substantially. Why? It is built on a mountain of debt, topping $17 trillion….
IS GOLD THE SECRET TO GENERATIONAL WEALTH?
Written by Angela Roberts
Jun 3, 2021
(I believe it is a lasting legacy path, but not the only path of course).
https://www.usmoneyreserve.com/news/executive-insights/is-gold-the-secret-to-generational-wealth/
I see being diversified with lots of physical holding, metals and property, as the key to wealth. Loving my gold that I purchased for about $300 an ounce, and silver I purchased for about $5 an ounce.
I was astounded what a friend who knows real estate told me what my combo farm, homestead, compound could be sold for today.
Never in my wildest dreams…
Silly wabbit! Only the elite are allowed to have generational wealth. Btw I could not figure out where to put this so I’m dropping it here. Trying to entice Ice-9 out of hiding. I know he will have something to say about this. No wonder they want to lock us down again.
The sad part of this article is that $1,000,000 is what $100,000 was 40 years ago.