All articles tagged with #generational wealth
Originally Published 4 months ago — by Business Insider
A study shows that Americans over 75 have become significantly wealthier in recent decades due to increased homeownership, stock market gains, and lower debt, while younger generations have seen their wealth stagnate or decline, exacerbating wealth inequality across age groups.
Originally Published 5 months ago — by Business Insider
Daniel Ramsey, a millionaire entrepreneur, shares his approach to saving for his children's future by starting early with Roth IRAs, involving them in investment decisions, and teaching financial values through education and family experiences to ensure responsible wealth management and long-term success.
Originally Published 1 year ago — by Yahoo Finance
As housing prices and mortgage rates soar, more young home buyers are relying on financial help from their parents to afford homes. This trend highlights growing economic disparities and the increasing role of family support in achieving homeownership.
Originally Published 1 year ago — by The Washington Post
Increasingly, young home buyers are relying on financial help from their parents to afford homes in an overpriced and undersupplied market. The share of first-time buyers under 35 with older co-signers has more than doubled since 1994, and more young adults are receiving down payment assistance from family. This trend highlights growing economic disparities and the crucial role of family wealth in achieving homeownership, as high home prices and mortgage rates make it difficult for first-timers to enter the market without familial support.
Originally Published 1 year ago — by New York Post
For the first time in 15 years, none of Forbes' billionaires under 30 are self-made, with 18 out of 25 inheriting their wealth, marking a shift towards a long-anticipated generational wealth transfer. The youngest billionaire, 19-year-old Livia Voigt, inherited a minority stake in her late grandfather's company, reflecting a trend seen among other young billionaires who received hefty inheritances from their affluent relatives.
Originally Published 1 year ago — by USA TODAY
Many older Americans, including baby boomers, are finding that their accumulated wealth may end up being depleted by health care costs, leaving little to pass on to younger generations. Rising out-of-pocket health care expenses, including premiums, copays, and uncovered services, are taking a toll on retirees' savings. With the significant wealth transfer predicted to occur in the coming years, researchers suggest that a large portion of this wealth may ultimately end up in the medical system. As health care costs continue to rise, many individuals are struggling to afford necessary care and are facing financial stress as they navigate retirement and aging.
Originally Published 1 year ago — by CNBC
A report from Knight Frank predicts that a massive wealth transfer over the next decade will make millennials "the richest generation in history," as assets are passed down from the silent generation and baby boomers. This shift, totaling $90 trillion in the U.S. alone, comes at a time when many millennials and Gen Z adults are facing financial challenges due to soaring rents, rising inflation, and student debt. The transfer is occurring amidst "seismic changes" in how assets are utilized, with millennials showing a greater focus on reducing their carbon footprints and investing in areas like climate change.
Originally Published 1 year ago — by NBC News
Black families are facing challenges in maintaining ancestral land due to informal ownership arrangements, leading to vulnerability to predatory developers and heirs' property hunters. Legal experts and organizations are working to help families gain clear title to their land and preserve generational wealth. Despite facing constant offers from developers, these families are determined to hold on to their land, which holds deep emotional and historical significance for them.
Originally Published 2 years ago — by Forbes
Some parents are considering a "borrow and die" strategy for Parent PLUS loans, aiming to avoid repayment by reaching retirement age and qualifying for $0 monthly payments until death or loan forgiveness. While this approach may increase family generational wealth, it is complex and risky, and may not work for all families. Parent PLUS loans have higher interest rates and no borrowing limits, making them an attractive but potentially burdensome option for financing college education. However, there are alternative strategies to consider, such as community college, scholarships, and income-driven repayment plans, to mitigate the financial impact of college tuition and fees.
Originally Published 2 years ago — by CNN
As home prices soar and mortgage rates remain high, Millennials and Gen Z adults with kids are struggling to afford family-sized homes, while Baby Boomers are staying put in their larger homes, contributing to a shortage of smaller homes in familiar neighborhoods. With record high levels of equity and low mortgage rates, Boomers have little financial incentive to downsize, leaving young families with limited options. Affordability is expected to improve somewhat in 2024 as mortgage rates trend down, but a mass exodus of older homeowners selling their homes is unlikely, with only a trickle of inventory expected.
Originally Published 2 years ago — by Redfin News
Baby boomers own nearly 3 in 10 large homes in the U.S., twice as many as millennials with kids, with affordability and financial incentives playing a significant role. Millennials struggle to find and afford large homes due to short supply and high costs, while some also prefer urban living. Boomers' wealth accumulation and favorable economic conditions have allowed them to hold onto large homes, with many owning them free and clear. As a result, young families are renting large homes, and first-time buyers are advised to consider new construction. The share of large homes owned by each generation and household type has shifted over the last decade, with boomers taking up at least 20% of large homes everywhere in the U.S.
Originally Published 2 years ago — by Yahoo Finance
The 50th anniversary of hip-hop coincides with national Black business month, highlighting how hip-hop has driven growth and empowerment for Black-owned businesses. With an economic impact of $16 billion, hip-hop has launched businesses in music, film, fashion, and advertising, allowing Black creatives to create brands and engage in collective economics. Rappers turned entrepreneurs have built generational wealth and invested in their communities. Despite a history of violence and racism against Black businesses, hip-hop has opened doors for Black brands and fostered financial empowerment. REVOLT, a media company, is partnering with Earn Your Leisure to bridge the gap between finance and the hip-hop community, making financial literacy a focal point. The influence of hip-hop on Black businesses is rooted in the idea of collective economics and nurturing the community for business to thrive.
Originally Published 2 years ago — by Fortune
Workers across the wealth spectrum are adopting the idea of "dying with zero" by spending or giving away all their cash before they die instead of leaving it as inheritance. This approach is gaining momentum, with some individuals wanting to eliminate family conflicts over money and teach their children the value of giving. While there are no exact guidelines for dying with zero, proponents emphasize the importance of being invested in the idea and having a purpose for the money being spent or donated. However, the fear of running out of money and uncertainty about when one will no longer need it can make this approach challenging, especially in old age. Financial planning experts suggest that the decision to die with zero should be made early in life, and that having a clear purpose for the money is crucial.
Originally Published 2 years ago — by NBC News
Descendants of California's earliest Black settlers are seeking reparations for land that was stolen from their ancestors. Families have uncovered documentation showing their ancestors bought land in the state, only to have it seized by the government or white citizens. The families hope their cases will be included in the California reparations task force's final report and list of recommendations, which will be issued to the Legislature at the end of June. The seizing of property not only stunts generational wealth but also destroys culture and history, according to experts.