Trillions of $$ On the Move
Economists are telling us that we are on the cusp of the greatest transfer of wealth in the history of America. Today's retirees make up one of the wealthiest segments of the U.S. population with more personal wealth than any previous generation.
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.
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.
As Americans are constantly labeling groups of people, it is probably time to think about where you stand in all of this.
How are you Affected?
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?
There really are no good contemporary parameters that describe or define the middle class. Opposed to twenty years ago it seems that even the lower class has more. Is middle class defined by the material possessions we have or is situated somewhere just below the poverty stricken members of society. Is middle class defined by a lifestyle?
What I am trying to do is get you to focus on your thinking. If you are using outside mediums to determine what middle class means to you than you will undoubtedly feel persecuted by rich and wealthy millionaires taking the whole kitty. Your thinking quite effectively dictates your behavior and your ability or inability to see yourself as one of the rich.
Is their Truth to the Shrinking Theory?
The fact is, the shrinkage theory not engraved in stone. It is hotly debated by economists who choose to measure the middle class in different terms, whether by changing the income brackets or by focusing on job categories. Some researchers actually see a smaller shrinkage or barely any at all. (We dont usually hear much about their views.)
Consider the Facts
Fewer people today live in households with incomes between $30,000 and $100,000 (a reasonable definition of "middle class") than in 1979.
At the same time households that earned more than $100k per year are steadily on the increase, up from 12 to 24%.
Groups earning less than $30,000 have remained consistent.
More and more people are making more money thus the dcline of the "middle class".
For married couples, median incomes have grown in inflation-adjusted dollars by 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!
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.
Economists are telling us that we are on the cusp of the greatest transfer of wealth in the history of America. Today's retirees make up one of the wealthiest segments of the U.S. population with more personal wealth than any previous generation.
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.
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.
As Americans are constantly labeling groups of people, it is probably time to think about where you stand in all of this.
How are you Affected?
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?
There really are no good contemporary parameters that describe or define the middle class. Opposed to twenty years ago it seems that even the lower class has more. Is middle class defined by the material possessions we have or is situated somewhere just below the poverty stricken members of society. Is middle class defined by a lifestyle?
What I am trying to do is get you to focus on your thinking. If you are using outside mediums to determine what middle class means to you than you will undoubtedly feel persecuted by rich and wealthy millionaires taking the whole kitty. Your thinking quite effectively dictates your behavior and your ability or inability to see yourself as one of the rich.
Is their Truth to the Shrinking Theory?
The fact is, the shrinkage theory not engraved in stone. It is hotly debated by economists who choose to measure the middle class in different terms, whether by changing the income brackets or by focusing on job categories. Some researchers actually see a smaller shrinkage or barely any at all. (We dont usually hear much about their views.)
Consider the Facts
Fewer people today live in households with incomes between $30,000 and $100,000 (a reasonable definition of "middle class") than in 1979.
At the same time households that earned more than $100k per year are steadily on the increase, up from 12 to 24%.
Groups earning less than $30,000 have remained consistent.
More and more people are making more money thus the dcline of the "middle class".
For married couples, median incomes have grown in inflation-adjusted dollars by 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!
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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