Money is Beginning to Change 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.
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 do You See Yourself?
If you are one of those people who see themselves as working middle class than this information may be frightening. You may also need to reconsider the way you classify people and how you feel you fit in to all of this. The way you look at your class standing has a lot to do with how well economically you will do.
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.
Define 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 relevance in these questions is that the middle class can largely be determined by your own viewpoint. If you measure your wealth by watching the news or if you feel constantly unable to keep up with the Joness than chances are your behavior and attitude about wealth is affecting your behavior and therefore your own financial freedom.
Is their Truth to the Shrinking Theory?
There are many economists who are not convinced that there really is a shrinkage in the middle class. The viewpoints depend largely on which parameters the economist uses to define middle class. Some define middle class by income brackets or occupational categories. The truth is that many economists say for certain that there is no real shrinking middle class theory.
Consider this:
A reasonable definition of middle class is income earning between $30K-$100K per year. Facts show that fewer people live in this income range today 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.
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.
Take a minute and think about what your knee jerk response to things is. When you hear news about a shrinking middle class do you immediately throw up your hands and figure there is no use in trying, or are you able to see through the hype and figure out the truths for yourself.
The wealth transfer and possible rise of the middle class to richer folks may mean that there is greater resource for all these people to invest in your product or service.
And if you are dead set on believing that the middle class is shrinking, then believe that it is shrinking because you have determined to leave those ranks and move upward! - 15465
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.
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 do You See Yourself?
If you are one of those people who see themselves as working middle class than this information may be frightening. You may also need to reconsider the way you classify people and how you feel you fit in to all of this. The way you look at your class standing has a lot to do with how well economically you will do.
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.
Define 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 relevance in these questions is that the middle class can largely be determined by your own viewpoint. If you measure your wealth by watching the news or if you feel constantly unable to keep up with the Joness than chances are your behavior and attitude about wealth is affecting your behavior and therefore your own financial freedom.
Is their Truth to the Shrinking Theory?
There are many economists who are not convinced that there really is a shrinkage in the middle class. The viewpoints depend largely on which parameters the economist uses to define middle class. Some define middle class by income brackets or occupational categories. The truth is that many economists say for certain that there is no real shrinking middle class theory.
Consider this:
A reasonable definition of middle class is income earning between $30K-$100K per year. Facts show that fewer people live in this income range today 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.
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.
Take a minute and think about what your knee jerk response to things is. When you hear news about a shrinking middle class do you immediately throw up your hands and figure there is no use in trying, or are you able to see through the hype and figure out the truths for yourself.
The wealth transfer and possible rise of the middle class to richer folks may mean that there is greater resource for all these people to invest in your product or service.
And if you are dead set on believing that the middle class is shrinking, then believe that it is shrinking because you have determined to leave those ranks and move upward! - 15465
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
