Posted on 06/12/2012 4:44:50 AM PDT by SeekAndFind
Baby boomers: Get ready for a double whammy.
For years now, there's been a lot of talk about boomers getting tremendous windfalls as their parents pass on. Many boomers, in fact, have been lagging behind in their savings, betting on—hoping for—big bequests, especially since many of them suffered big losses in 2008.
But for a growing number of boomers, things aren't going according to plan. The postwar generation is living longer—and many are spending their savings along the way. And, of course, many of them also took a hit in 2008.
The result is that, as a group, boomers likely won't be getting as much of an inheritance as they hoped. Even worse, far from receiving a bequest, a growing number are tapping some of their own savings to help their cash-strapped parents make ends meet.
For families, the result is often a lot of scrambling, dashed dreams, and conflict and angst as parents and children try to come to grips with the lean new reality—and divide up a smaller pie.
"There are way too many adult children I see who are looking at Mom and Dad's estate as their ticket to a secure retirement," says M. Holly Isdale, an estate planner in Bryn Mawr, Pa. "But with people living longer, much of the money is likely to be spent."
How much longer? Thanks to medical gains, a 65-year-old man has a 60% chance of living to age 80 and a 40% chance of reaching 85. For women, the odds are 71% and 53%, respectively. All of this has made the 85-and-over age bracket the fastest-growing segment of the population. In an era of low interest rates, volatile financial markets, and rising costs for health and long-term care, finding money to cover those years isn't always easy.
(Excerpt) Read more at online.wsj.com ...
Blood, Sweat & Tears, “God Bless The Child” (1969)...
“Momma may have, Poppa may have, God bless the child who’s got his own...”
I’ve alreadt told my kids “If you want it you better go get it, because me and momma are going to have fun on the way out”. They can have whats left.
I remember the popular bumper stickers from a generation ago: “We’re Out Spending Our Children’s Ineritance” and “Live Long Enough to Be a Burden On Your Children”. I guess they’re true after all.
Typical of a dying society. We are lucky our preceding generations did not have that attitude.
The middle class has been just about made extinct, ergo...
Is that directed at my comment or the article?
I remember those. The early retirees driving around with them a couple of decades ago are apparently still at it.
You got that right. Why is anyone depending on a handout from their parents? In a perfect world, people would save what they needed for retirement and live with extended family. But the Liberalism of the past 40 to 70 years has destroyed that. We moved a system where you get the sh__t taxed out of you during your life so you can't save, but then are told the government is going to provide for you in old age. But now young kids in their 20s are having the sh__t taxed out of them to support older people. And culturally, we have been conditioned that elderly parents should not have to move in with their kids. We have an unsustainable system that is breaking down before our eyes. Social Security going broke, no inheritance. So the Boomers will demand that 20 something kids making $10 per hour with no health insurance pay for their retirement. It will collapse one day soon.
Told mine the same thing with one addition. I thanked her for giving me a Spiegal's guitar for my 14th birthday that led to 40 years of good time Rock n' Roll!
Huh? What “handout”???
All they are asking for is not to be handed a 15+ trillion dollar debt!
Big Business, Big Government, Big Labor have seen to it that privately held small businesses are dwindling.
Those remaining are regulated to death, taxed to death and lawsuited to death.
Wonder why this is happening??
DUHHH! By design.
My 4 kids are hard-working and thrifty. They know that they need to depend on themselves, that all I’m prepared to give them (right now) is the use of a spare bedroom or two if things go wrong. If I have something left to leave them, praise God. If not, ah, well.
It is not directed at you, because the attitude you expressed on the subject is almost always developed by a person’s personal life and family situation, and is therefore anecdotal rather than generally meaningful in discussion of societal norms.
Well lets see, all three of my girls are doing pretty good, the oldest is a Dentist the next one’s an RN and the youngest is going to BYU next year for her Masters. All payed for by the business I’ve spent over 30 years building. Since the girls are not interested in the business momma and I will sell out and retire once the youngest one completes school. I’m tired and plan on enjoying life as much as possible. If you think thats contributing to a dying society then so be it.
Depends on the character of the receivers of the inheritance. Will they use it wisely or just waste it or worse spending themselves into further debt. 2008 hit my investments hard too but it didn’t wipe me out. Stay the course on saving, getting out of debt and living below the means.
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