Remember those bumper stickers on the back of motorhomes that said, "We are spending our children's inheritance?" Well, they were not joking.
If you're counting on an inheritance from your parents to rescue your underfunded retirement plan, you could be playing a dangerous game. Despite predictions of a massive transfer of wealth between generations, many Baby Boomers can expect to get little or nothing from their parents.
Economists and financial experts can't agree on how much money Baby Boomers and their offspring are likely to inherit. In fact, their predictions of the total sum involved vary widely. But many agree that a small number of wealthy families are likely to receive the bulk of the windfall, and that many other would-be heirs will end up disappointed.
An AARP study analyzing the Federal Reserve Board's 2001 Survey of Consumer Finances (the most recent figures available) found the median inheritance Baby Boomers received was about $48,000 but 83% of them said they'd received no inheritance to date.
Source: Getting Going by Kelly K. Spors in The Wall Street Journal
If you're counting on an inheritance from your parents to rescue your underfunded retirement plan, you could be playing a dangerous game. Despite predictions of a massive transfer of wealth between generations, many Baby Boomers can expect to get little or nothing from their parents.
Economists and financial experts can't agree on how much money Baby Boomers and their offspring are likely to inherit. In fact, their predictions of the total sum involved vary widely. But many agree that a small number of wealthy families are likely to receive the bulk of the windfall, and that many other would-be heirs will end up disappointed.
An AARP study analyzing the Federal Reserve Board's 2001 Survey of Consumer Finances (the most recent figures available) found the median inheritance Baby Boomers received was about $48,000 but 83% of them said they'd received no inheritance to date.
Source: Getting Going by Kelly K. Spors in The Wall Street Journal