Millennials, You have some work to do
I came across this data recently that was eye-catching. You know the World Economic Forum’s claim “You will own nothing and be happy”, well it may be easier for them to accomplish than expected.
Millennials only have a mere fraction of the USA’s reported wealth, despite making up approximately a 3rd of the workforce (which of course, this number is growing as Gen-X continue to retire).
Back in 2008 just before the Great Financial Crisis was finished, Millennials just held 0.5% of US wealth. Well with technology, computers, apps, more university degrees, especially when you think how much preaching there is for equality of outcome? Well a bit, but this is only as a result of these people able to accrue more within the 15 year period and inheritance.
This percentage still only sits at 5.612% of US wealth, by far the smallest.
Perhaps Millennials are waiting for estate planning to kick in… but with credit card debt, student loans at their highest and ownership of housing at its lowest, I wonder how much wealth will be transferred to them (and subsequently Gen-Z).
There needs to be a massive recognition that Millennials are living far above their means and have been for some time. It makes sense to radically downsize wherever possible and take earnings to purchase real assets–the easiest of which gold and silver coins and bullion. Since ‘money’ is never taught in school, most believe that a bank account is ‘their’ money and because they see the numbers increasing after a deposit they believe they are saving. In real terms, it’s next to impossible to save with costs increasing, interest rates rising on debts and monetary inflation.
The next couple of decades will experience one of the largest wealth transfers in US history. Will it go straight to the banks? Will it go into a hard asset like gold or real estate? Will it go into foreign markets? Will it die and go to money heaven after gambling in the crypto markets? Or will it continue to be inflated away to service the mountain of debt?
Either way, I hope to be on the side it gets transferred to with you.
#StayOnTheBall
