Americans have worked hard to build wealth.
It wasn’t until the 1960s and 70s that generational wealth spread beyond the wealthy to the middle and upper class.
The “Greatest Generation” worked hard and sacrificed and built a foundation for those born in the 50s and 60s to be able to go to college, to have some help from their parents in starting off, and maybe even help them buy a home.
Many of those born in the 1990s and beyond have been the unusual recipients of wealth never before imagined, as parents have left money to them.
How much money?
And what has been the result?
Here are the stats:
As of 2022, 1 in 5 US households received an inheritance.
For people 70 and over, the rate jumps to 2 out of 5.
The “average American” has inherited about $58,000. But that’s the average… Most, not really much of anything.
But a few lucky ones who inherit, on average, receive $266,000.
Those who inherit in their 70s receive, on average, $344,000.
Some people have used the money wisely– They’ve invested it. They’ve saved it. They’ve started businesses with it. They’ve bought homes with it.
Others have squandered it. They stay at home. They do nothing. They spend it. And it turns out to be more destructive than helpful.
These “inheritors” are having an “invisible” impact on the unemployment figures and overall GDP because they are spending money and buying things but not making money.
They’re not in the workforce and not creating wealth… This is creating a skew in the unemployment figures.
What are your observations about those who have inherited money?
Let me know what you think. Email me at [email protected].