Despite TFA coming from Visa, of all places, I found it to be a read worthy of my time. Basically, inheritances might not be as large as one might suspect, and the all that "inheritance spending lift" might already be happening (my parents are blowing my inheritance).
I might take issue with the conclusion at the very bottom that GenX and Millenials are ahead of Boomers on a capital per-capita basis. That might be true, but (for example) when this youngest-of-them Boomer bought his first house, housing was much more affordable. So it's not like the "kids" are necessarily spending their money on the fabled avocado toast (a dish this Boomer enjoys very much, thank you).
80% of the GDP over the next two decades will be siphoning money out of baby boomers (medical care, retirement homes, luxury cruises) before their children see a cent of it. Coupled with AI taking everyone's job, the end result is neo-feudalism where familial dynasties call all the shots.
Gen X and millennials are ahead of boomers on per capita wealth at the same age
This runs counter to the popular media narrative of poor millennials, but it makes sense. Millennials rose a tailwind of surging stock prices since the '09 bottom, fat white-collar salaries (such as in tech, consulting, finance), and surging home pries, buoyed by cheap mortgages from 2010-2022 thanks to 14 years of near-zero interest rates.
Even when taking into account student loan debt, white-collar workers still earn much more compared to in the 70s-early 2000s. 6 figure salaries for white-collar jobs were uncommon even in the early 2000s whereas they are commonplace today.
What is shocking to me is how can so many boomers still have a mortgage? They could buy a house when you could easily get one for <10 years of salary almost anywhere. You basically had to try not to pay off your mortgage, then constantly borrow against it.
>plant to do a Skip gen trip?
I have no earthy idea what this could mean but they just casually drop it in there. Thats how you can tell what social class you were born into.
I had a school friend whom's grandparents were one of these in the list it seems. The bought him a 3bed/bath house in the suburbs. He proceeded to do coke for the next 10 years and be a burnout,.but all good because he still has a nice house to live in while being a detriment to society. Yeah I'm bitter so what?
>baby boomers are sitting on at least $93 trillion in assets
> $36 trillion in baby boomer wealth will pass to Gen X and millennial heirs over the next 20 years after subtracting liabilities, excluding the top 1 percent of households (the outliers in how they spend their wealth)
Why the fuck would you be allowed to include top 1% in first number but not second? They are outliers, yes, so what?
Keep in mind these charts are almost useless if you're trying to determine how much the typical millennial or gen x person has compared to boomers.
I'd go as far as to say it's misleading at best to portray "The kids are alright" and that "Gen X and millennial heirs are starting from a position of strength", when the charts used to back that up are based on net worth per capita, a very poor metric to use for this. They might as well say "A small portion of the kids, that happen to be in the top ~10%, are alright".
Heh, I saw the title and the domain, and I thought it was referring to wealth transferred from poor to rich by all the credit card fees that merchants pay that are refunded to well-off cardholders through rebates. Poorer customers do not get lucrative rebates, it they use debit and get none at all.
While the article doesn't talk much about it, but the math in it implies that most of the wealth will be transferred to the government in the form of inheritance taxes. So yes, the great wealth transfer. Just not in the direction everyone presumed.
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[ 0.27 ms ] story [ 26.4 ms ] threadI might take issue with the conclusion at the very bottom that GenX and Millenials are ahead of Boomers on a capital per-capita basis. That might be true, but (for example) when this youngest-of-them Boomer bought his first house, housing was much more affordable. So it's not like the "kids" are necessarily spending their money on the fabled avocado toast (a dish this Boomer enjoys very much, thank you).
This runs counter to the popular media narrative of poor millennials, but it makes sense. Millennials rose a tailwind of surging stock prices since the '09 bottom, fat white-collar salaries (such as in tech, consulting, finance), and surging home pries, buoyed by cheap mortgages from 2010-2022 thanks to 14 years of near-zero interest rates.
Even when taking into account student loan debt, white-collar workers still earn much more compared to in the 70s-early 2000s. 6 figure salaries for white-collar jobs were uncommon even in the early 2000s whereas they are commonplace today.
>plant to do a Skip gen trip?
I have no earthy idea what this could mean but they just casually drop it in there. Thats how you can tell what social class you were born into.
I had a school friend whom's grandparents were one of these in the list it seems. The bought him a 3bed/bath house in the suburbs. He proceeded to do coke for the next 10 years and be a burnout,.but all good because he still has a nice house to live in while being a detriment to society. Yeah I'm bitter so what?
They include the 1% in the wealth calculation, and then exclude it from the wealth transfer to say "see how much taxation is happening?"
If you don't want to include the 1% in the second number, don't include it in the first number.
> $36 trillion in baby boomer wealth will pass to Gen X and millennial heirs over the next 20 years after subtracting liabilities, excluding the top 1 percent of households (the outliers in how they spend their wealth)
Why the fuck would you be allowed to include top 1% in first number but not second? They are outliers, yes, so what?
I'd go as far as to say it's misleading at best to portray "The kids are alright" and that "Gen X and millennial heirs are starting from a position of strength", when the charts used to back that up are based on net worth per capita, a very poor metric to use for this. They might as well say "A small portion of the kids, that happen to be in the top ~10%, are alright".
Sounds pretty fair to me.