Tuesday, February 18, 2014
We all know that over the near future, as the Boomers' parents die, the Boomers will inherit a substantial amount of wealth. I mean substantial as in, according to an article in the New York Times which references "[t]he Center for Retirement Research at Boston College [which] estimates that boomers will ultimately receive a total of $8.4 trillion, most of it by 2030." Yes TRILLIONS; that, dear reader is substantial.
Receiving money can be a good thing, but may come with some bumps in the road, as evidenced in Fran Hawthorne's February 10, 2014 article, When Boomers Inherit, Complications May Follow. Comparing the boomers with other "sudden money recipients" (example-a lottery winner), boomers are different in that they "are typically middle-aged or older. Depending on the amount, the newfound assets can open fresh possibilities just as “they’re looking at that shift stage of life when they’re going from career to the next career” or to retirement [according] to Susan K. Bradley, founder of the Sudden Money Institute ... a resource center for recipients and financial planners." But, as the article discusses, inherited money comes with an entire spectrum of emotions which can range along "a mix of guilt, loss, anger, regret, relief and hurt, perhaps stewed with long-simmering family rivalries and resentments." Some children may keep their parents' investment strategies intact, perhaps as a way of honoring the parents, but such is not necessarily the wisest move.