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.
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?
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.
If the aforementioned information has you feeling frustrated and aggravated thinking that while the rich get richer, you will only get poorer - then think again. Perhaps another way to look at this is that more and more middle class Americans are moving up the ranking and that is why the middle class seems to be fading away. Dont be too quickly convinced that this wealth transfer and shrinking middle class is all loom and doom for you.
The Middle Class, Defined!
Does anyone really know exactly what the middle class is? Of whom, specifically is it comprised? And to what, or to whom, will we compare this group? Are we comparing this group and their lifestyle to those on the streets of Calcutta, India? Or to those in America a couple of decades ago? Or to those in the below-poverty level segment of our society? And to determine what middle class is, do we compare the number of things owned today compared to things owned twenty years ago? (Did you need a computer, DVD player, second car, or a cell phone twenty years ago?)
The relevance in these questions is that the middle class can largely be determined by your own viewpoint. If you measure your wealth by watching the news or if you feel constantly unable to keep up with the Joness than chances are your behavior and attitude about wealth is affecting your behavior and therefore your own financial freedom.
Is their Truth to the Shrinking Theory?
There are many economists who are not convinced that there really is a shrinkage in the middle class. The viewpoints depend largely on which parameters the economist uses to define middle class. Some define middle class by income brackets or occupational categories. The truth is that many economists say for certain that there is no real shrinking middle class theory.
When you consider the following your viewpoints on your own economic standing may change drastically.
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.
At the same time households that earned more than $100k per year are steadily on the increase, up from 12 to 24%.
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 income inflation dollars have grown a whopping 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!
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.
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?
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.
If the aforementioned information has you feeling frustrated and aggravated thinking that while the rich get richer, you will only get poorer - then think again. Perhaps another way to look at this is that more and more middle class Americans are moving up the ranking and that is why the middle class seems to be fading away. Dont be too quickly convinced that this wealth transfer and shrinking middle class is all loom and doom for you.
The Middle Class, Defined!
Does anyone really know exactly what the middle class is? Of whom, specifically is it comprised? And to what, or to whom, will we compare this group? Are we comparing this group and their lifestyle to those on the streets of Calcutta, India? Or to those in America a couple of decades ago? Or to those in the below-poverty level segment of our society? And to determine what middle class is, do we compare the number of things owned today compared to things owned twenty years ago? (Did you need a computer, DVD player, second car, or a cell phone twenty years ago?)
The relevance in these questions is that the middle class can largely be determined by your own viewpoint. If you measure your wealth by watching the news or if you feel constantly unable to keep up with the Joness than chances are your behavior and attitude about wealth is affecting your behavior and therefore your own financial freedom.
Is their Truth to the Shrinking Theory?
There are many economists who are not convinced that there really is a shrinkage in the middle class. The viewpoints depend largely on which parameters the economist uses to define middle class. Some define middle class by income brackets or occupational categories. The truth is that many economists say for certain that there is no real shrinking middle class theory.
When you consider the following your viewpoints on your own economic standing may change drastically.
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.
At the same time households that earned more than $100k per year are steadily on the increase, up from 12 to 24%.
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 income inflation dollars have grown a whopping 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!
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
