Money can, after all, grow on trees — family trees. And judging by the $8.4 trillion baby boomers are expected to inherit from older generations in coming years, we’re not talking chump change. In fact, roughly two-thirds of boomer households will receive an inheritance, and the average value of those inheritances is just under $300,000.
Jim McKown, first vice president with Wells Fargo Advisors’ High Net Worth Planning team, notes that a $300,000 inheritance has the potential to grow over 30 years into nearly $3 million, assuming a 7 percent annual return.
Tom and I were on the streets of Boston’s Little Italy earlier this month when those words wafted up toward our ears. We turned to find this elderly yet charming little Italian woman standing in front of us with her hands clasped together. No doubt there was a quizzical look on both of our faces and I quickly offered a typically Southern response: “Mam?”
Her eyes twinkled, her smile widened and she animatedly moved toward us to gleefully whisper yet again, “You look like you’re looking for something special. And I can help.”