The Baby-Boomers are on track to become the first generation whose children will be worse off than there parents. In a disturbing survey by US Trust, a subsidiary of Bank Of America, 51% of the 475 high net-worth investors said it was not important to leave their kids an inheritance. Keith Banks, US Trust President, told CNBC, These are mainly self-made people… they think I’m going to get a return on that investment for myself, number 1, and maybe my children down the road. This mind-set prevails to the highest levels of business & government.
The burden of debt left to the next generation just from the current commitments of the US government domestically & globally will have the the national debt in excess of $20,000,000,000,000 by 2020. That means about $50,000 will be owed by every man, woman & child in the US by 2020. The Boomers seem to be concerned about today and letting the next generation take care of the mountain of debt left after they are gone.
Probably the most disturbing fact from this survey is the total lack of planning even for the Boomers own future. 88% of those surveyed have an estate plan in place, yet, nearly 39% acknowledge their estate plans are not comprehensive. Finally, 43% do not have a financial plan that factors in the impact of long-term health care on family wealth. It is the lack of foresight by this generation that has led us to the brink of financial collapse.
Foresight & planning are the hallmarks of all Tangible Asset Portfolios. Thoroughly thought-out investment in a TAP can make all the difference in your future financial security. Whether it is for wealth preservation to pass onto your children or to cover the inevitable cost of health-care in retirement, the financial security you will achieve will make the difference in the next generations ability to face the coming debt crisis.