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.
Meanwhile we are being told that we are facing a shrinking middle class. Some want to interpret this to mean that soon we will only have the very rich and the very poor in our nation.
As Americans are constantly labeling groups of people, it is probably time to think about where you stand in all of this.
Does this Affect You?
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.
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.
What is the Middle Class?
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 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:
In 1979 Middle Class was defined by an income bracket of $30,000-$100,000. Today fewer people in the America live within those figures 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.
That being the case, it means the "decline" of the middle class came from people moving up the income ladder, not the other way around.
For married couples, median incomes have grown in inflation-adjusted dollars by 25% since 1979.
Is the sky falling or not? It all depends on a) to whom you choose to listen, b) how you interpret the statistics, and c) your perspective on life in general.
Thinking about millions of dollars being imposed from one generation to the next can actually mean that more people will have the resources to buy your product or service. If your product or service can help these people invest wisely, chances are they are going to use it..
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.
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.
Meanwhile we are being told that we are facing a shrinking middle class. Some want to interpret this to mean that soon we will only have the very rich and the very poor in our nation.
As Americans are constantly labeling groups of people, it is probably time to think about where you stand in all of this.
Does this Affect You?
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.
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.
What is the Middle Class?
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 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:
In 1979 Middle Class was defined by an income bracket of $30,000-$100,000. Today fewer people in the America live within those figures 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.
That being the case, it means the "decline" of the middle class came from people moving up the income ladder, not the other way around.
For married couples, median incomes have grown in inflation-adjusted dollars by 25% since 1979.
Is the sky falling or not? It all depends on a) to whom you choose to listen, b) how you interpret the statistics, and c) your perspective on life in general.
Thinking about millions of dollars being imposed from one generation to the next can actually mean that more people will have the resources to buy your product or service. If your product or service can help these people invest wisely, chances are they are going to use it..
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.
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
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