We baby boomers have been fortunate to have lived through decades of the most prosperous time in much of recorded history. We have reaped (earned) much of these benefits. This accumulation has seemed relatively easy though “a rising tide floats all ships”.
How will this $400 billion (in Canada + $ 4.1 trillion in the US) of accumulated wealth be passed to the following generation in the next 15-20 years? First thing is that if the current tax rules persist in Canada and in the US, the governments of each country will be significant beneficiaries through taxes, of this massive wealth transition, possibly up to 1/3 or more of these wealth transfers.
Wealth can be a blessing. It can also be a curse. Treated as a blessing, a family (and society) can be better and stronger and contributors. I look upon wealth as a responsibility, where my role is as a caretaker of such wealth for the next generation. Looking at our family’s assets this way guides my actions not only on investments; also on spending and use of the family’s assets. I try to emphasize the we (benefit for the family) over the me (immediate gratification) in this case.
Think about your perspective on wealth.
The above reflects my own views.
Each family has its own views on wealth and what it does with that wealth.
Learn, think, apply!