A recent report showed that baby boomers (the generation born between 1946 and 1964, growing up during the 1960’s and 70’s) are wising up and once they pass away, are not leaving their hard-earned (or hard-won, depending) cash to offspring.
With the current state of our economy, there’s the factor of being little or nothing left behind for these parents’ children (this is at least half of current baby boomers).
Many boomer parents say they’ve done more than enough for their kids by paying for housing, food, tuition, and other expenses during their respective lifetimes. Instead, boomers are using the cash to start enjoying themselves once the nest is empty.
More to take into consideration:
*Twenty-five percent of baby boomer parents say that leaving an inheritance would make their children lazy.
*Twenty percent of these parents also say their children would lose the entire inheritance.
*Parents should, however, leave behind an amount designated toward funeral, burial and other final expenses, even if there are life insurance policies in effect.
Many baby boomers had parents who were raised during the Depression, a factor that made such baby boomers more conscientious about money matters. In addition to the above, baby boomer parents also felt that leaving little or no inheritance to their children would instill additional points about the value of money and investing.
Current generations: don’t count on Mom and Dad leaving behind much of a financial legacy once they’re gone; there’s no time like the present to start building your own nest eggs if you haven’t already done so.