Interesting. 
As a generation, baby boomers, those born between 1946 and 1964, have done very well for themselves.

Blessed with the good fortune to have entered adulthood at the start of an era of exploding housing values and sustained stock market growth, the roughly 20% of Americans who fall into the boomer generation have amassed $80 trillion in cumulative wealth — nearly as much as all other living generations combined. With the oldest boomers now approaching 80, some of that wealth has started to be passed down to younger generations, marking the early stages of what's become known as the "Great Wealth Transfer."

In the coming decades, economists estimate that the children of boomers, most of them millennials born between 1981 and 1996, stand to inherit as much as $70 trillion to $90 trillion in real estate, stock, cash and other assets in the U.S. alone. It'll be enough to make millennials "the richest generation in history," according to one recent analysis.

https://www.yahoo.com/news/americas-great-wealth-transfer-is-underway-how-will-it-impact-the-country-212207756.html

I'll reserve judgment for the moment.

 How come the boomers aren't the richest @ 80 Trillion if their wealth is pre inheritance tax dollars?

80 Trillion minus The Fed Govt takes up to 37% of that in inheritance tax and then there's the state taxes on inheritance [in some states]. Lets say average of 37%. 80 - 37% = 50.4 Trillion. 

Quote from: MacWa77ace on April 10, 2024, 09:12:47 AMHow come the boomers aren't the richest @ 80 Trillion if their wealth is pre inheritance tax dollars?

80 Trillion minus The Fed Govt takes up to 37% of that in inheritance tax and then there's the state taxes on inheritance [in some states]. Lets say average of 37%. 80 - 37% = 50.4 Trillion. 

You left out the $34,000,000,000,000 in national debt (and climbing). If I "own" a $450K home with a $300K mortgage my interest in it is only $150K at best. In the time it took me to write this post it went up $5,000,000+.

Quote from: Uomo Senza Nome on April 10, 2024, 09:17:22 AM

Quote from: MacWa77ace on April 10, 2024, 09:12:47 AMHow come the boomers aren't the richest @ 80 Trillion if their wealth is pre inheritance tax dollars?

80 Trillion minus The Fed Govt takes up to 37% of that in inheritance tax and then there's the state taxes on inheritance [in some states]. Lets say average of 37%. 80 - 37% = 50.4 Trillion. 

You left out the $34,000,000,000,000 in national debt (and climbing). If I "own" a $450K home with a $300K mortgage my interest in it is only $150K at best. In the time it took me to write this post it went up $5,000,000+.

That 34 trillion will paid off by gen ZZZZZZZ^E12

This article is not factoring in the coming housing crash and depression either.

But remember, many of those boomers bought that $450K market value home in 1977 for $79K and have since paid it off. Now if they can just keep possession of it with the property tax increases and the ridiculous home owners insurance rates these days.  My neighborhood was built back then and there are a whole bunch of neighbors that have lived here since then and paid off their homes. They are dieing off now and their kids inherit and sell the homes. That's all capital gains taxes on them and they went for approx $75K back then, now $500+ depending on sqft, # bedrooms, pool/no pool, updates upgrades.

Quote from: MacWa77ace on April 10, 2024, 09:35:01 AM

Quote from: Uomo Senza Nome on April 10, 2024, 09:17:22 AM

Quote from: MacWa77ace on April 10, 2024, 09:12:47 AMHow come the boomers aren't the richest @ 80 Trillion if their wealth is pre inheritance tax dollars?

80 Trillion minus The Fed Govt takes up to 37% of that in inheritance tax and then there's the state taxes on inheritance [in some states]. Lets say average of 37%. 80 - 37% = 50.4 Trillion. 

You left out the $34,000,000,000,000 in national debt (and climbing). If I "own" a $450K home with a $300K mortgage my interest in it is only $150K at best. In the time it took me to write this post it went up $5,000,000+.

That 34 trillion will paid off by gen ZZZZZZZ^E12

This article is not factoring in the coming housing crash and depression either.

But remember, many of those boomers bought that $450K market value home in 1977 for $79K and have since paid it off. Now if they can just keep possession of it with the property tax increases and the ridiculous home owners insurance rates these days.  My neighborhood was built back then and there are a whole bunch of neighbors that have lived here since then and paid off their homes. They are dieing off now and their kids inherit and sell the homes. That's all capital gains taxes on them and they went for approx $75K back then, now $500+ depending on sqft, # bedrooms, pool/no pool, updates upgrades.

You don't pay Federal Capital Gains taxes on inherited property. You only pay for the appreciation from when you inherit it. This is why it is a good idea to always get an appraisal done as soon as you inherit property. Also it helps ease things for other inheritors. 

I never inherited property myself. When my mother passed she was living in a house I had bought for her. A sibling mistakenly thought she was going to inherit the house, because she said my mother told her she could have it when she passed.

It took a little delicate doing to explain that wasn't how it worked.

The one thing commonly overlooked is the impact of inflation on the headline #.

Adjust the $80 trillion back to even 1980 dollars and you will see a significantly smaller #.

In fact simple exercise. Take the s&p 500 at 12/31/19 and adjust it to Feb 2024 numbers and you will see only a nominal increase when adjusted for inflation.

"Record sales" results are not surprising when inflation is running at 8% +/-. The same logic applies to net worth of the "boomer" generation.

My poor millennial offspring are screwed. I own nothing.  

Quote from: Lambykins on April 12, 2024, 07:11:49 PMMy poor millennial offspring are screwed. I own nothing.  

Well, your share of the National Debt is $102,000, so there is that.

The Federal Reserve Released a notice the other day saying that it "should" be sustainable for the next 20 years and then after that the debt will be so large there will be no way to avoid default. So if you are "lucky" you might die before that happens. I imagine the cracks will appear before then, probably in the next ten years. Most of the rich will have evacuated the country by then leading us to hold the bag.

You didn't expect to get cheered up on site about prepping for worst case scenarios did you?

All we have done for the most part is leaving a steaming pile for them to inherit.

It hasn't help that the politicians have been spending money hand over fist to buy votes and line their own pockets.

It's as if they don't GAS for their own children.

I have boomer parents and was raised like Gen X because they started late (nearly 40). I'll inherit the trash and treasures that fill a garage and four storage units when Dad goes. My brother wants me to get the house since he has a more stable/better paying job than me, but Mom named him beneficiary on everything. We lost everything twice during both the late 80s and late 90s recessions, so we don't really have much from our parents to pass on other than things.

Quote from: Crimson_Phoenix on May 11, 2024, 01:08:34 PMI have boomer parents and was raised like Gen X because they started late (nearly 40). I'll inherit the trash and treasures that fill a garage and four storage units when Dad goes. My brother wants me to get the house since he has a more stable/better paying job than me, but Mom named him beneficiary on everything. We lost everything twice during both the late 80s and late 90s recessions, so we don't really have much from our parents to pass on other than things.

He can still give it to you.  Who is the executor of their estate? 

Quote from: flybynight on May 11, 2024, 02:11:37 PM

Quote from: Crimson_Phoenix on May 11, 2024, 01:08:34 PMI have boomer parents and was raised like Gen X because they started late (nearly 40). I'll inherit the trash and treasures that fill a garage and four storage units when Dad goes. My brother wants me to get the house since he has a more stable/better paying job than me, but Mom named him beneficiary on everything. We lost everything twice during both the late 80s and late 90s recessions, so we don't really have much from our parents to pass on other than things.

He can still give it to you.  Who is the executor of their estate?

In this case, it will be my brother. I had a mental breakdown when we nearly lost Dad three times in a month from kidney failure, sepsis, organ failure, and they found he had prostate cancer when they were preparing him for surgery. He lost most of his lower intestine and all of his colon to necrosis, but they saved him. I was still working full time, trying to set stuff up to move to change jobs that took me back to AZ, and then all this. My parents decided they could never trust me again.

Quote from: Crimson_Phoenix on May 11, 2024, 02:41:27 PM

Quote from: flybynight on May 11, 2024, 02:11:37 PM

Quote from: Crimson_Phoenix on May 11, 2024, 01:08:34 PMI have boomer parents and was raised like Gen X because they started late (nearly 40). I'll inherit the trash and treasures that fill a garage and four storage units when Dad goes. My brother wants me to get the house since he has a more stable/better paying job than me, but Mom named him beneficiary on everything. We lost everything twice during both the late 80s and late 90s recessions, so we don't really have much from our parents to pass on other than things.

He can still give it to you.  Who is the executor of their estate?

In this case, it will be my brother. I had a mental breakdown when we nearly lost Dad three times in a month from kidney failure, sepsis, organ failure, and they found he had prostate cancer when they were preparing him for surgery. He lost most of his lower intestine and all of his colon to necrosis, but they saved him. I was still working full time, trying to set stuff up to move to change jobs that took me back to AZ, and then all this. My parents decided they could never trust me again.

But if the beneficiary wants you to have the house. Then he can pass the deed to you.  

I have thought some about this myself and hyperbole aside, I do believe that you will see a very chunky generational transfer as boomers die off. The demographics sort of imply that. I also think it'll be a feeding frenzy as corporations and politicians try to insert themselves and extract as much value as possible.

I'm not sure how it'll impact millennials yet though. I'm technically in that cohort if you use the most common definitions (born 1983), so we do kick this around a bit.

For people with kids, I think a lot of those resources will simply be a pass-through to the next generation. Certainly that's what it'll be for my wife and I, we won't touch any of it. Assuming there's anything left to begin with. 

But my wife and I prefer to live small, and our Fuck You Money threshhold is very low compared to our peers. 

For people without kids... my guess is that it'll simply get consumed in whole or in part. Bilbo with the Ring... "why shouldn't I?"