- Baby Boomers defined as people between the ages of 47 and 66
- Generation X refers to people born between early 1960s and early 1980s
- 55 per cent of Baby Boomers believe it's important to leave money to offspring
- Most Baby Boomers believe each generation should earn its own wealth
- Three-quarters of people younger than 46 favor leaving money to kids
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When members of the Baby Boomers generation die in the next 50 years, they will leave trillions of dollars in wealth behind, but their children should not hold their breath for a large inheritance.
According to the U.S. Trust Insights on Wealth and Worth annual study released on Monday, only 55 per cent of Baby Boomers - those between the ages of 47 to 66 - think it is important to leave money for their offspring.
U.S. Trust commissioned an independent, national survey of 642 high net worth adults, who were not clients, with at least $3million in investable assets.
Givers: A study found that 31 per cent of wealthy Baby Boomers would prefer to leave their money to charity
One of three Baby Boomers surveyed – about 31 per cent - don’t think it is important to leave a financial inheritance and said they would rather leave money to charity than to their children.
By contrast, three-quarters of wealthy people under age 46 said it's a priority to leave inheritance for their children.
The top reason for not wanting to leave money for their kids is the belief shared by some Baby Boomers that each subsequent generation should work to earn its own wealth.
Following closely behind is the thought that it is more important to invest in children’s success while they are growing up.
‘Our survey points to a shift in generational behavior and outlook, most likely shaped by personal experience and societal responses to economic realities,’ said Keith Banks, president of U.S. Trust.
Banks added that well-off parents are concerned that the next generation is not prepared to inherit wealth, which is not surprising considering the fact that most of the Baby Boomers surveyed don't talk to their kids about money: just 37 per cent said they've fully disclosed their net worth to their children.
Kept in the dark: Just 37 per cent of Baby Boomers said they've fully disclosed their net worth to their kids
Those over age 67 said they weren't having this discussion because they were raised to avoid money talk, while younger respondents said they didn't want to inhibit their kids' work ethic.
Unlike the majority of people from her generation, 63-year-old Kathleen Taylor, of Chimacum, Washington, taught her two grown children since they were young to be responsible for their own money.
That is why she plans to leave most of her money to her children and some money to charitable causes, ABC News reported.
One way Taylor and her husband taught their children about responsible spending was providing the value of college tuition, room and board to each of them and putting them in charge of paying the bills.
‘People thought we were crazy,’ she told ABC.
The Taylors plan to start a college fund once their children start having their own kids. And they intend to add to it on their grandchildren’s birthdays as long as Taylor and her husband are alive.
Mrs Taylor said she hopes her own children will do the same for their great-grandchildren.
The U.S. Trust study also has found that 42 per cent of Baby Boomers and 54 per cent of those under age 46 are paying medical costs for their parents or other relatives.
More money means more pain for fans - FOXSports.com
LONDON, England
If money is the root of all evil, then somebody forgot to tell supporters of Manchester City and Chelsea - both of whom get to spend the summer floating in a happy daze.
Before the arrival of their sugar daddies, backed by petrodollars from Abu Dhabi and Russia respectively, City were light years away from winning the Premier League title and Chelsea were hardly earmarked as contenders for the Champions League. Now, they are trophy-holders and serious contenders for next season.
Cash is not always king in football but it sure helps. For all the teams without billionaire benefactors, the mission to keep up with the spiraling salaries and trumped-up transfer fees is a challenge that is as overwhelming as it is risky. Some 60 per cent of Premier League clubs reported a loss when the last financial accounts were released.
Competing with the likes of City and Chelsea in the money league is an impossible task, so the rest have to be resourceful, and hope that the new regulations designed to try to encourage clubs to run themselves as a sustainable business (a pan-European initiative called Financial Fair Play) actually begin to shackle the spending power of the super rich. Not everyone, it must be said, is holding their breath on that one even if it is a nice idea.
And now there is suddenly even more money sloshing around for every Premier League club to get their hands on. A new, record-breaking television deal, worth a record $4.7 billion over three years — up a whopping 71 per cent on the previous arrangement — will soon be boosting the coffers everywhere. This is just a deal for domestic television rights, so when internet and overseas deals are factored in, the Premier League’s broadcasting worth is estimated at closer to a stunning $8 billion.
Each club is guaranteed at least $22 million more each year than they previously received. To put that into perspective, that means the last-placed finisher in 2013 will probably get more than Manchester City earned for finishing top of the Premier League pile last season. That sum, incidentally, totaled $95 million.
The Premier League’s chief executive, Richard Scudamore, believes the deal is very significant in comparison to major overseas clubs such as Real Madrid, Barcelona, AC Milan, Bayern Munich and so on.
"It allows people to plan and gives us a degree of financial security. I don't underestimate that,” he said. “The idea you can plan with some certainty your revenues for the next four years is a big thing."
And in fact, there is an interesting comparison with Spain’s La Liga, in which the heavyweighs from Barcelona and Madrid negotiate their own television rights individually. They can pull in around $200 million per season, but the smallest clubs earn a fraction – in the region of $20 million. The Premier League have a system where the deal is struck collectively. All boats are raised in England under this new deal – and suddenly, a leap to the Premier League means so much more to the teams in the Championship, a rung below.
It is questionable how great all this will turn out to be for fans, however. Somebody has to pay for these mega-deals, and part of the cost will presumably be passed on to the consumers in the form of price hikes for subscription channels that deliver football coverage. Live games have been the preserve of the pay-per-view channels in England for 20 years now. In that time, the cost of attending a match inside the stadium has ballooned, too.
But the increase is fabulous news, obviously, for clubs, players and the wheeler-dealer agents who squeeze every drop of earnings out that they can. It is likely that the $300,000 a week salary that Carlos Tevez takes home will soon be dwarfed. And with some big stars — Emmanuel Adebayor, Luka Modric and Robin van Persie come to mind — seeking improved deals, there are fewer reasons for clubs to stretch their payrolls.
As yet , there has not been an obvious knock-on effect in terms of the Premier League’s transfer activity. Only Chelsea have been notably lavish in advance of the European Championship, with the Belgian playmaker Eden Hazard arriving and Porto’s Hulk very strongly linked with a big money move. A greater indication of whether this gives clubs more clout in the market will come when the Euros finish.
Bruce Buck, Chelsea’s chairman, predicted Abramovich is eager to up the ante to help his team to build on the Champions League win. “We’ve seen him, year after year, invest and put his hand in his pocket and spend big money. He may go to another level now,” said Buck.
Chelsea, which starts next season's Premier League campaign at Wigan, are desperate for a stronger challenge in the league. City will kick off its title defense at home to Southampton but are eager to make more of a go of it in the Champions League.
Manchester United are intent on bouncing back, but have a tough start to the season against Everton - the team that wrecked United's title dream. Arsenal, who host Sunderland on the opening day, have to try to stay in the top four. Liverpool, who face Tottenham, Arsenal and Manchester City, in three of their first four fixtures, are under pressure to improve.
Now there is even more money to make the football world go round.
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