Episode 270 - The Baby Boomer To Gen Z Inheritance Dynamic

This situation highlights a growing generational divide in
financial expectations. Gen Z, having observed economic
turbulence, often expects to inherit wealth or assets as part of
their financial future, potentially seeing it as a safety
net. 


However, many Baby Boomer parents may not be planning on leaving
much behind due to various factors, including: 


1. Increased Longevity: Boomers are living longer, which means
their retirement funds and assets may be depleted by the time
they pass. They may be using much of their savings on healthcare,
daily living expenses, and maintaining their lifestyle during
extended retirement years. 


2. Economic Uncertainty: Boomers, who have experienced financial
crises such as the 2008 recession, may have seen their savings or
real estate values fluctuate. As a result, they may be focused
more on securing their own financial future than leaving an
inheritance. 


3. Cost of Healthcare and Long-Term Care: Medical expenses and
long-term care are significant financial burdens for older
generations, which can eat into the money or assets that might
otherwise be passed down. 


4. Changing Attitudes About Inheritance: Some Boomers believe
their children should be financially independent and may not feel
the same obligation to leave wealth behind, focusing instead on
enjoying their retirement or supporting philanthropic causes. For
Gen Z, this generational disparity emphasizes the need for
proactive financial planning and financial literacy, rather than
relying on potential inheritance. 


The conversation between these two generations about expectations
and financial planning could help avoid disappointment and ensure
that Gen Z is better prepared to manage their own financial
futures. 


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