Money is Beginning to Change 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 is being said those who will bequest this wealth will greatly boost the resources of the 76 million Baby Boomers. If thats true, then the next few decades will see an estimated $40.6 trillion change hands as Baby Boomers and their parents pass their accumulated wealth to their heirs.
At the same time we are also hearing about the disappearing or shrinking middleclass. What this means to you depends on how you perceive the statement. Some may view it as indication that we will be made up only either very poor or very rich people.
If there is no middle class, does that mean we will only have the very rich and the very poor? As detrimental as that may sound, it is important to avoid classification labels and look at the real picture.
How are you Affected?
This might be a good time to stop and assess in your own mind how these assertions affect you personally; because your perspective will make a big difference in your behavior and your response.
For instance, you hear of this massive wealth transfer and that the middle class is quickly disappearing, then you might wring your hands and declare that the rich are getting richer and the poor are getting poorer. And you are convinced without a doubt that you are in the latter group!
What is the Middle Class?
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.
The point is, where is your focus? If the direction of your focus is dictated by the ten oclock news, you are in deep trouble. If you believe the middle class is under the heel of the rich, and being squashed like a bug, how does that affect your behavior?
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:
Fewer people today live in households with incomes between $30,000 and $100,000 (a reasonable definition of "middle class") than in 1979.
The amount of persons earning more than $100,000 has risen from 12 to 24 percent during the same time period.
The percentage of people in households making less than $30,000 has remained static.
Those facts alone lead to a thinking that the reason the middle class is declining is because more middle class people are making the forward to leap to upper class or wealthy standing
For married couples, median incomes have grown in inflation-adjusted dollars by 25% since 1979.
Take a minute and think about what your knee jerk response to things is. When you hear news about a shrinking middle class do you immediately throw up your hands and figure there is no use in trying, or are you able to see through the hype and figure out the truths for yourself.
The wealth transfer and possible rise of the middle class to richer folks may mean that there is greater resource for all these people to invest in your product or service.
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. - 16069
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 is being said those who will bequest this wealth will greatly boost the resources of the 76 million Baby Boomers. If thats true, then the next few decades will see an estimated $40.6 trillion change hands as Baby Boomers and their parents pass their accumulated wealth to their heirs.
At the same time we are also hearing about the disappearing or shrinking middleclass. What this means to you depends on how you perceive the statement. Some may view it as indication that we will be made up only either very poor or very rich people.
If there is no middle class, does that mean we will only have the very rich and the very poor? As detrimental as that may sound, it is important to avoid classification labels and look at the real picture.
How are you Affected?
This might be a good time to stop and assess in your own mind how these assertions affect you personally; because your perspective will make a big difference in your behavior and your response.
For instance, you hear of this massive wealth transfer and that the middle class is quickly disappearing, then you might wring your hands and declare that the rich are getting richer and the poor are getting poorer. And you are convinced without a doubt that you are in the latter group!
What is the Middle Class?
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.
The point is, where is your focus? If the direction of your focus is dictated by the ten oclock news, you are in deep trouble. If you believe the middle class is under the heel of the rich, and being squashed like a bug, how does that affect your behavior?
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:
Fewer people today live in households with incomes between $30,000 and $100,000 (a reasonable definition of "middle class") than in 1979.
The amount of persons earning more than $100,000 has risen from 12 to 24 percent during the same time period.
The percentage of people in households making less than $30,000 has remained static.
Those facts alone lead to a thinking that the reason the middle class is declining is because more middle class people are making the forward to leap to upper class or wealthy standing
For married couples, median incomes have grown in inflation-adjusted dollars by 25% since 1979.
Take a minute and think about what your knee jerk response to things is. When you hear news about a shrinking middle class do you immediately throw up your hands and figure there is no use in trying, or are you able to see through the hype and figure out the truths for yourself.
The wealth transfer and possible rise of the middle class to richer folks may mean that there is greater resource for all these people to invest in your product or service.
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. - 16069
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
