Baby boomers debt crisis. The subject of inheritance is always highly charged – especially if you are in a Baby Boomers debt crisis. Parents seem to be divided into several camps. There are those who are self made and who believe that their kids will learn more from making it on their own than by receiving it on a silver platter. Others have spoiled their kids with a lavish lifestyle that only an equally lavish inheritance will be able to support. And there are those like billionaire Bill Gates who fall somewhere in the middle. This is his take on his wealth and inheritance for his children.
“It will be a minuscule portion of my wealth. It will mean they have to find their own way. They will be given an unbelievable education and that will all be paid for. And certainly anything related to health issues we will take care of. But in terms of their income, they will have to pick a job they like and go to work. They are normal kids now. They do chores, they get pocket money”.
Sadly there are many people who are living well beyond their means and waiting for an inheritance to bail them out of serious debt issues. They are living the life they believe is their right and as a result have an enormous mortgage, leased cars, maxed out credit cards and nothing but a mountain of debt to call their own.
- An HSBC Bank report released in September, 2013, found 39% of working people are banking on some type of inheritance with the median value expected to be $77,213.
- A report by Moneyville calculates that baby boomers are poised to inherit about $1 trillion over the next two decades as their parents and other close old relatives die.
- According to MoneySense, 36% of the wealthiest families have received an inheritance; the average amount of that inheritance was $136,000.
However a BMO report shows that what many Canadians expect and what they may receive are quite different:
- About 1.5 million Canadians are relying on their inheritance as the primary source of capital to fund their retirement.
- On average, Canadians expect to receive a total of $150,600 in cash or cash equivalents, and $151,200 in non-cash inheritance.
- In reality, inheritance sums received were significantly less – the average inheritance received was $56,000; certainly not enough to provide a solution to the question – Will I ever be able to retire?
Waiting for an inheritance to bail you out of a baby boomers debt crisis or other serious financial problems is clearly not a sound plan. If you have serious debt issues you need a professional. Contact Ira Smith Trustee & Receiver Inc. today. As professional trustees we can offer a sound financial plan and a way out of your baby boomers debt crisis for Starting Over, Starting Now. Take the first stop towards living a debt free life.
