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Economists Say Trillions of Dollars are Changing Hands
Economists are telling us that we are on the cusp of the greatest transfer of wealth in the history of America. Today's retirees make up one of the wealthiest segments of the U.S. population with more personal wealth than any previous generation.
It is being said those who will bequest this wealth will greatly boost the resources of the 76 million Baby Boomers. If thats true, then the next few decades will see an estimated $40.6 trillion change hands as Baby Boomers and their parents pass their accumulated wealth to their heirs.
At the same time we are also hearing about the disappearing or shrinking middleclass. What this means to you depends on how you perceive the statement. Some may view it as indication that we will be made up only either very poor or very rich people.
As Americans are constantly labeling groups of people, it is probably time to think about where you stand in all of this.
Does this Affect You?
If you are one of those people who see themselves as working middle class than this information may be frightening. You may also need to reconsider the way you classify people and how you feel you fit in to all of this. The way you look at your class standing has a lot to do with how well economically you will do.
For instance, you hear of this massive wealth transfer and that the middle class is quickly disappearing, then you might wring your hands and declare that the rich are getting richer and the poor are getting poorer. And you are convinced without a doubt that you are in the latter group!
What is the Middle Class?
In earnest there really is no definitive means with which to define the middle class. This is because many people classify people based on material possessions while others classify them on lifestyle and occupational functions. Compared to Americans a decade ago, we have much more in terms of belongings. There were no computers, cell phones or two car families back then.
The point is, where is your focus? If the direction of your focus is dictated by the ten oclock news, you are in deep trouble. If you believe the middle class is under the heel of the rich, and being squashed like a bug, how does that affect your behavior?
Is their Truth to the Shrinking Theory?
The fact is, the shrinkage theory not engraved in stone. It is hotly debated by economists who choose to measure the middle class in different terms, whether by changing the income brackets or by focusing on job categories. Some researchers actually see a smaller shrinkage or barely any at all. (We dont usually hear much about their views.)
Consider the Facts
A reasonable definition of middle class is income earning between $30K-$100K per year. Facts show that fewer people live in this income range today than they did in 1979.
The amount of persons earning more than $100,000 has risen from 12 to 24 percent during the same time period.
The percentage of people in households making less than $30,000 has remained static.
That being the case, it means the "decline" of the middle class came from people moving up the income ladder, not the other way around.
Married couples have seen median income raises of 25% since 1979.
Reading these facts, you can easily see that the decline of the middle class is more likely because they are the ones moving up rather than down the economic ladder of success!
If indeed there is this massive wealth transfer, it can mean there are millions of people with discretionary income to spend on your products or services. (What if you had a product to help them invest wisely?)
And if you are dead set on believing that the middle class is shrinking, then believe that it is shrinking because you have determined to leave those ranks and move upward!
Economists are telling us that we are on the cusp of the greatest transfer of wealth in the history of America. Today's retirees make up one of the wealthiest segments of the U.S. population with more personal wealth than any previous generation.
It is being said those who will bequest this wealth will greatly boost the resources of the 76 million Baby Boomers. If thats true, then the next few decades will see an estimated $40.6 trillion change hands as Baby Boomers and their parents pass their accumulated wealth to their heirs.
At the same time we are also hearing about the disappearing or shrinking middleclass. What this means to you depends on how you perceive the statement. Some may view it as indication that we will be made up only either very poor or very rich people.
As Americans are constantly labeling groups of people, it is probably time to think about where you stand in all of this.
Does this Affect You?
If you are one of those people who see themselves as working middle class than this information may be frightening. You may also need to reconsider the way you classify people and how you feel you fit in to all of this. The way you look at your class standing has a lot to do with how well economically you will do.
For instance, you hear of this massive wealth transfer and that the middle class is quickly disappearing, then you might wring your hands and declare that the rich are getting richer and the poor are getting poorer. And you are convinced without a doubt that you are in the latter group!
What is the Middle Class?
In earnest there really is no definitive means with which to define the middle class. This is because many people classify people based on material possessions while others classify them on lifestyle and occupational functions. Compared to Americans a decade ago, we have much more in terms of belongings. There were no computers, cell phones or two car families back then.
The point is, where is your focus? If the direction of your focus is dictated by the ten oclock news, you are in deep trouble. If you believe the middle class is under the heel of the rich, and being squashed like a bug, how does that affect your behavior?
Is their Truth to the Shrinking Theory?
The fact is, the shrinkage theory not engraved in stone. It is hotly debated by economists who choose to measure the middle class in different terms, whether by changing the income brackets or by focusing on job categories. Some researchers actually see a smaller shrinkage or barely any at all. (We dont usually hear much about their views.)
Consider the Facts
A reasonable definition of middle class is income earning between $30K-$100K per year. Facts show that fewer people live in this income range today than they did in 1979.
The amount of persons earning more than $100,000 has risen from 12 to 24 percent during the same time period.
The percentage of people in households making less than $30,000 has remained static.
That being the case, it means the "decline" of the middle class came from people moving up the income ladder, not the other way around.
Married couples have seen median income raises of 25% since 1979.
Reading these facts, you can easily see that the decline of the middle class is more likely because they are the ones moving up rather than down the economic ladder of success!
If indeed there is this massive wealth transfer, it can mean there are millions of people with discretionary income to spend on your products or services. (What if you had a product to help them invest wisely?)
And if you are dead set on believing that the middle class is shrinking, then believe that it is shrinking because you have determined to leave those ranks and move upward!
About the Author:
Rob Walcher is an expert in the direct sales industry. He shot to the top in two different direct sales companies in a matter of 18 months and has become known as the Ten-Figure Guru. If you want to learn how to get comfortable with a few more zeroes in your income and work directly with Rob click here
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