According to a Merrill Edge report, one third of “mass affluent” (mid-range wealth) Americans say their financial stability depends on their inheritance. But interestingly, this is more a result of prevailing economic conditions (markets, unemployment, weak wage growth) than the generation being brought up with a silver spoon sense of entitlement.
Economic conditions for creation of wealth have been challenging for the rising generation. There are even signals of a decline in social mobility. The fact that they are looking for family assistance both for key life and investment decisions is an interesting social trend, perhaps reflecting a more sombre and realistic approach, and a decline in appetite for risk.
Consider This: As a “rich parent”, how does this make you feel? While this view has come through in research, is it something that has been discussed in your family? Is it a topic that can easily be discussed?
Is it a good thing or a bad thing? Or is it simply a product of the economic environment, in which case should families acknowledge it and make changes to the way they intend to transition wealth?
As a third party advisor to #familyoffice and #familybusiness Werdiger often helps guide the #intergenerational parties to a win-win-win result. Family Business Advisors-Counseling Actionable Generational Wealth Succession. For more in-depth, thought-provoking discussion points and commentary on family and business, sign-up to gain access to the archives of my Family Matters newsletter: https://www.transitionbook.co/member-area/ or book a call or speaking engagement at https://www.davidwerdiger.com influenced and partly based on the Book E-Myth Revisited case study.
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