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> I guess inevitably that is going to be partially reversed when those older generations pass on, and leave some of their accumulated wealth to their children
by flukus 5y ago
> I guess inevitably that is going to be partially reversed when those older generations pass on, and leave some of their accumulated wealth to their children
By being tied up in property the timing of this is hardly ideal though. The costs in housing was paid when I was young, the transfer back will be after my mortgage is paid off and my main use of this transfer will be to fund my retirement. In turn I'll be relying on these investments to fund retirement and if I live long enough the next generation won't get any of my wealth until they're older and don't need it so much.
What would be a better way (other than cash) to transfer some of this wealth when the next generation is younger and need it more?
- skissane 5y ago> What would be a better way (other than cash) to transfer some of this wealth when the next generation is younger and need it more? Some parents give guarantees to their children's mortgages, or buy property jointly with their children. I think it comes down to a couple of factors (1) the wealthier you are, and the fewer children you have, the more sustainable this is; (2) cultural attitudes differ between different families (and between cultural/ethnic groups) in terms of whether parents ought to do this, or instead leave their adult children to fend for themselves.