Economists Say Trillions of Dollars are Changing Hands
According to recent economic studies it is assumed that retirees are currently one of the wealthiest groups of Americans. This generation of seniors has experienced more personal wealth than any other generation. As they prepare to leave their money to loved ones it can be said that we are on the cusp of one of the largest wealth transfers in history.
It goes without saying that the lives of over 76 million Baby Boomers will be transformed with the estimated 40.6 trillion dollars changing hands. This has the potential to boost the economic status of families for generations to come.
Interestingly enough at the same time of this wealth transfer, many financial experts are exclaiming that the middle class is beginning to disappear. While some see this as an ominous expression of our financial destiny others can see the possibility that this allows.
Americans are known for getting caught up in labels, slogans, buzz words and phrases. We accept them, embrace them and wear them often without much thought.
How are you Affected?
The answer to this question lies in how you see yourself in the greater economic picture. If you feel that you are one of the poor then you are probably throwing up your hands in disgust and feeling like this means the rich will get richer, while you will end up having less.
By the same token you may be delighted feeling that this wealth transfer and lack of middle class will have you moving on up.
The Middle Class, Defined!
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.
What I am trying to do is get you to focus on your thinking. If you are using outside mediums to determine what middle class means to you than you will undoubtedly feel persecuted by rich and wealthy millionaires taking the whole kitty. Your thinking quite effectively dictates your behavior and your ability or inability to see yourself as one of the rich.
Is the Middle Class Really Shrinking?
Just because we hear that the middle class is shrinking does not mean it is true. Economists are locked in debates about whether it is true and whether or not there are amicable means with which to measure middle class stature. While some judge middle class by occupation others focus on income earning. Many economist say there is little to no shrinkage of middle class.
Consider this:
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 number of people in households that bring in more than $100,000 rose (in that same time period) from 12 percent to 24 percent.
The percentage of people in households making less than $30,000 has remained static.
More and more people are making more money thus the dcline of the "middle class".
For married couples, median incomes have grown in inflation-adjusted dollars by 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?)
If you must believe that the middle class is shrinking, think of it has shrinking because they are moving on up which means more money in the pot for you to collect upon. - 16003
According to recent economic studies it is assumed that retirees are currently one of the wealthiest groups of Americans. This generation of seniors has experienced more personal wealth than any other generation. As they prepare to leave their money to loved ones it can be said that we are on the cusp of one of the largest wealth transfers in history.
It goes without saying that the lives of over 76 million Baby Boomers will be transformed with the estimated 40.6 trillion dollars changing hands. This has the potential to boost the economic status of families for generations to come.
Interestingly enough at the same time of this wealth transfer, many financial experts are exclaiming that the middle class is beginning to disappear. While some see this as an ominous expression of our financial destiny others can see the possibility that this allows.
Americans are known for getting caught up in labels, slogans, buzz words and phrases. We accept them, embrace them and wear them often without much thought.
How are you Affected?
The answer to this question lies in how you see yourself in the greater economic picture. If you feel that you are one of the poor then you are probably throwing up your hands in disgust and feeling like this means the rich will get richer, while you will end up having less.
By the same token you may be delighted feeling that this wealth transfer and lack of middle class will have you moving on up.
The Middle Class, Defined!
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.
What I am trying to do is get you to focus on your thinking. If you are using outside mediums to determine what middle class means to you than you will undoubtedly feel persecuted by rich and wealthy millionaires taking the whole kitty. Your thinking quite effectively dictates your behavior and your ability or inability to see yourself as one of the rich.
Is the Middle Class Really Shrinking?
Just because we hear that the middle class is shrinking does not mean it is true. Economists are locked in debates about whether it is true and whether or not there are amicable means with which to measure middle class stature. While some judge middle class by occupation others focus on income earning. Many economist say there is little to no shrinkage of middle class.
Consider this:
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 number of people in households that bring in more than $100,000 rose (in that same time period) from 12 percent to 24 percent.
The percentage of people in households making less than $30,000 has remained static.
More and more people are making more money thus the dcline of the "middle class".
For married couples, median incomes have grown in inflation-adjusted dollars by 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?)
If you must believe that the middle class is shrinking, think of it has shrinking because they are moving on up which means more money in the pot for you to collect upon. - 16003
About the Author:
Rob Walcher can be considered as one who determined long ago to move out of the ranks of middle class. 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
