Baby Boomers to Kids: We’re Spending It, Not Leaving It

7:19 pm Asset Protection, Estate Planning

surprise e1315854997815 Baby Boomers to Kids:  We’re Spending It, Not Leaving ItAccording to a new survey just out from the Bank of America investment firm U.S. Trust, less than half of the wealthy Baby Boomers surveyed said that leaving money to their children was a priority.

In fact, more than half (52 percent) of those surveyed said they had not fully disclosed their wealth to their children, with 64 percent of those saying the reasons they had not done so was for fear their children would become lazy, make poor decisions or squander the family fortune.

While the Baby Boom generation has a reputation of also being the “Me” generation, most of those surveyed who said they were not leaving anything (or much of anything) to their children is because they feel they have already done enough.

In addition, according to a Los Angeles Times article on the survey, many boomers believe that the money they’ve worked so hard to get is theirs to keep and spend.  After years of paying pricey education bills and other forms of support for adult children, boomers are saying what’s left is theirs to spend as they wish.

Another reason that children of boomers can expect to inherit less is their parents’ fear of higher healthcare costs and an uncertain economy that leaves older parents worried about having enough money to last over an increasingly longer life span.

If boomer children are holding out hopes that their parents may change their mind, another statistic from the survey may be disheartening:  98 percent said their financial goals are aligned with their personal values and believe in their current financial strategies.

Help is available to you by contacting your Southern California financial planning experts today.

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