Friday, February 2, 2007

What's happening to the transfer of wealth?

I have heard several speakers in the last year talk about the "transfer of wealth" that is currently underway as today's seniors begin to leave their wealth to the aging baby boomer generation. This article is one of several that I have read in the past few weeks that makes me question just how much "wealth" there really is to be handed down.

My opinion, I think the examples cited in the attached are extreme and probably in the small minority but I will concede that the percentage of people facing such financial issues probably is higher for this generation than any prior due to living longer and rising health care costs.

If there are in fact more seniors in this group than ever before someone with more financial savvy than myself should create an annuity that rivals the reverse mortgage. If donors could leverage home equity for a charitable annuity, they could still pay their mortgages yearly and deduct the interests each year and also likely be able to deduct a portion of the gift in that year as well. I imagine leaving money to a charity of your choice would be an easy sell when your other option is leaving your house to the bank!

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