In the 1990s headlines suggested baby boomer would have the greatest wealth of any generation in history. Inheritances and created wealth would make this generation wealthy.

In 2004 AARP did a study based on federal data. They found nearly eighty percent of boomers have not yet received an inheritance. In 1989 twenty seven percent believed they would have one, now less than fifteen percent expect to receive one.

Today people are living longer. Many are spending their savings for Health care. Money they believed they would leave to their children is being spent on every day expenses.

Reasons for the lack of inheritances and reduced inheritances are many:

1. Many companies have eliminated traditional pension funds.
2. Inheritances are traditionally split between children. Boomers are in the 3.3 range.
3. Donations are left to charitable organizations.
4. Since folks are living longer, they spend more on life and recreation.
5. Reverse mortgages allow people to spend all of their assets during their lifetime.

Taxes take a large bite out of the ‘gift’. Declining health causes many people to spend down their money in order to be eligible for Medicare under the new eligibility requirements. Many people are turning to professionals for advice on investments. They are looking for ways to have their funds last as long as they are alive. Many work in retirement to help this process.

I chose not to be a burden to my children. I save and am fairly conservative in my spending habits. Fortunately, I, like many others, educated my children to have good careers. They should be able to support themselves and their children without receiving an inheritance.