Rich baby boomers cut kids off
A new survey shows some wealthy people are less interested in leaving money to their children. Many think their kids couldn't handle it.
That's because many boomers earned their money the hard way -- on their own with no help from parents -- and think their children should do the same thing.
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The data come from a new wealth survey from U.S. Trust., the wealth and investing management arm of Bank of America (BAC). The survey found that about three-quarters of wealthy people over age 67 and younger than 46 think it's important to leave a financial inheritance to their children. But baby boomers are a different story: Only about half think it's important to leave money to their kids. Some of the rest said they would rather give their money to charity.
Many boomers think their kids couldn't handle that kind of money anyway. Only a third of boomers think their children are prepared emotionally and financially for a big inheritance. Other generations are more confident, with 54% older than 67 and 52% younger than 46 thinking their children could handle the money.
The survey also found that baby boomers seem not to be as concerned with their parents' long-term health. About 33% of those under age 46 have purchased long-term-care insurance for their parents, compared with only 6% of baby boomers. You could argue that baby boomers wouldn't have as many living parents as younger generations, however.
"Our survey points to a shift in generational behavior and outlook, most likely shaped by personal experience and societal responses to economic realities," said Keith Banks, the president of U.S. Trust. "The next generation has not experienced the consistently strong economic growth or investment returns that baby boomers experienced during the longest bull market in history."
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We are set up to give our daughter 1/2 of our estate. She went to college, learned how to support herself, owns her own home, operates a successful business and has made us very proud of her
. My son however, cant hold a job and hasn't for over 20 years, is a doper using crack, etc. We have tried at least 6 times to help him through treatment, each time as soon as he is out, he goes right back to the bad "friends" and is back on drugs before the day is over.
I told him that I would not leave him any of the estate to buy drugs with and had my lawyer draw up a will which excluded him from any participation in our estate. It will instead go to provide Scholarship funds for Graduate Students in a local college. This country needs young people with Masters and Ph.D degrees to help rebuild this country's economy. It alreadyhas more crackhead than it needs.
My lawyer has been instructed that if my son institutes a lawsuit to try to gain the estate, he is to be told that I instructed the lawyer to spend every dollar left in the estate before ending a defense of the will, insuring that neither my son or his lawyer will receive one penny of the balance of the estate. No lawyer will take a case when he knows in advance that the defense will liquidate the estate before ending the defense.
I didn't expect a dime of my parents' money when they died. When my dad died, my mom was able to travel around the world, take several cruises, and road trips. She spents thousands of dollars and enjoyed the last 10 years of her life. That was exciting to see her enjoying life since my dad was so sick. I recieved a small amount of money, but the time she spent with me was more important. I glad she was able to spend that money.
No one should expect an inheritance from a parent whether they are able to give it to you or not. Everyone needs to learn how to live within or below their means and save for their retirement. This is not a process that starts in the forties or fifties. It must be something that starts as a young teen or even younger. It is called discipline and not instant gratifcation.
There will always be those who fall through the cracks for various reasons and they for the most part will need help from community organizations, churches as well as the Federal government-but way to many think they deserve a lifestyle even if they do not earn enough to live like the Jones' next door. Then when retirement gets close they say I do not have enough money saved and I owe more money than I ever have!
Retirement is as much about getting your fixed expenses as low as possible as well as having a plan to save for retirement at an early age. You can not expect to retire and have massive debt; it will NEVER work for you!
It is not easy, but discipline is paramount at all costs.
Let your parents enjoy what they worked for.
If you think you will retire the same way, think again.
I haven't expect social security for 20 years (age 38 now), have worked for 25 years and don't expect anyone to hand me anything.
I want my parents to spend their military retirement money on, hmmm, lets see.... THEMSELVES...
If they want to give it to charity, so be it.
If they want to give it to me, cool deal, but I"m not expecting a thing from anyone.
I'm not blaming them for the f'd up world we live in, that goes to the politicians who cant do anything without spending money.
**But wait, here's a thought. **
How do we fix it?
Of all the problems out in the world, this is one of the most minor outside of celebrity issues...
It seems like I am in the minority here, but I am in my late twenties and I am happy to hear that boomers don't want to give away their hard earned cash! You have to earn your keep, even though yes it is a little harder now then it was then, but what are you going to do with that money? Sure some will invest it, but with the generations of "me first" coming through the pipes, it is going to get spent on stupid things.
I would say to boomers, you earned it, spend every bit of it and enjoy your lifes work and its rewards while you can!
Look at the debt we are leaving the next generation. It will be harder for them.
Forget about the fact that the economy has tanked in a major way, with no real recovery likely. Forget about the fact that many boomers have pensions, whereas workers in younger generations were cut out from that old pension system. Forget about the likelihood that social security will take more from the younger generations, and give less.
The boomers (as a generation), as always, expect (and get) the best of everything, and don't seem to care much what legacy they leave for the younger generations.
My concern is that people who have worked hard, invested, and saved will be raped by the federal government. The money will be stolen from those who have earned and saved and given to a bunch of welfare freeloaders, both legal and illegal.
Only 52% of people in this country pay taxes. The others do not pay or even get refunds and never paid anything into the system.
The illegal, lying Kenyigar allowing younger illegals citizenship will not help this country!!!!!
If they don't know how to handle the money, then look no further then the Parents!
Isn't that your job to teach the younger generations (your Kids) your tricks of the trade?
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