After WW II, the war was over and men came back to the US and the economy was good. It stayed good as Europe had to be rebuilt, the manufacturing base was humming, people could find work in offices across the land and it general it felt good to alive. When it feels good to be alive, people have children and with an average of 5 children per household, a baby boom started. The baby boom would last into the 1960’s, after these years of change in the US, the birthrate slowed down. Families were having 3 children and now they an average of 2 to 3. The affect on the US has been as the baby boom aged first there was a boom in school buildings and the teachers that needed to teach them. Then the baby boom moved into the work force and what people did for a living changed from what their parents did for a living. For generations, people tended to follow whatever their parents did, but with the baby boom new opportunities in the service area opened up. The baby boom is now above 60 years of age and soon about one third of the population will be retired. In another 30 years, most of the baby boom will have died or will be close to death which implies different aspects to the health system, but it also means wills will send money to the next generation.

In an article by Talmon Joseph Smith and Karl Russell of the New York Times News Service, an intergenerational transfer of wealth is in motion and in will dwarf anything of the past. 73 million baby boomers, the youngest is 60 and the oldest are 80, many will die and leave money to their heirs.

In 1989, total family wealth was about $38 trillion, adjusted for inflation. In 2022, the number had tripled to $140 trillion. Of the $84 trillion projected to passed down from older Americans to millennial and Generation X heirs through 2045, $16 trillion will be transferred within the next decade.

The wealthiest 10% will be giving and receiving a majority of riches, within that range the top 1% – which holds about as much wealth as the bottom 90% will dictate the broadest share of money flow.

Although the top 1% is overwhelming white, there are now over one million US high net worth investors are Black, Asian, Hispanic or Latin.

Linking to dividend paying stocks, 100 years ago people though about selling the family farm as a retirement, sometimes selling to the oldest child or the one that liked farming. In the urban environment, if you worked for someone else it is the family home, investments and insurance policies which account for wealth. Those services can be provided by the big banks which tends to mean the fees they earn can last a long time to come. As long as the financial institution is reasonably managed, it should be profitable and pay dividends for generations to come.

There are more questions than answers, till the next time – to raising questions.