Bumper Sticker: “I’m spending my children’s inheritance.”

The NYT today published an articled called “8 Reasons You Should Not Expect an Inheritance.”

We’ve been hearing this for years but this list is compelling and, frankly, kind of a downer.  But it is a good read…  The list has some items on it I’d not considered before and not necessarily intuitive… For instance:

Fewer people have pensions, so they’re more wedded to the markets. In 2005, according to the Employee Benefits Research Institute, 63 percent of workers in the private sector worked for employers who offered only 401(k) or similar plans, not traditional pensions.

As pensions continue to disappear, retirees and those close to the final quitting time will depend more heavily on how their investments perform. And as large numbers bet heavily on stocks to finance 20-plus years of retirement cruises and Cadillacs, some will inevitably lose big.

  1. People who make it to 65 will live a lot longer
  2. Social Security and Medicare will probably change
  3. Fewer people have pensions, so they’re more wedded to the markets
  4. Out-of-pocket health care costs for retirees may soon hit seven figures a couple
  5. Divorced individuals may pass on less money
  6. It’s getting easier to drain a home’s equity
  7. Life insurance may not offer much help
  8. The transfer of wealth will increasingly happen while the older generations are still alive

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