Now I know how these kids drive Mercedes and BMWs, eat out every other night, party and live in these new posh amenitie filled apartments that cost $2500+ a month...they get free hand outs from their parents even though they make wayyyy more income than the average American worker... Wealthy millennials still lean on their parents for financial support Business Insider Elena Holodny 18 hours ago ("Girls"/HBO) FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors. Millennials lean on their parents for financial help(InvestmentNews) A new survey from UBS Group AG found that 74% of affluent millennials rely on their parents for financial support. The group surveyed 1,131 millennials aged 21-29 who have at least $100,000 in household income or the same amount of assets to invest, or aged 30-36 with at least $250,000. 29% of those surveyed said their received help with health insurance; 28% with home purchases, 26% with auto insurance, and 23% with utilities, reports Christine Idzelis. “They came into adulthood during a very uncertain economic time,” said Sameer Aurora, the head of client strategy for UBS Wealth ManagementAmericas. “The financial crisis has cast a long shadow.”
Without knowing how those numbers compare to the children of wealthy parents in the past this is a meaningless "kids these days" rant. I bet the article author walked 10 miles to school when they were kids, in the snow, uphill both ways. Classic idiot quote from the article, "Only 29% of millennials said they were happy with their financial portfolios, compared to 78% of boomers." Well no kidding, a 25 year old isn't going to have a fully developed financial portfolio and a 65 year old is. In fact I'm surprised 29% of 25 year olds were "happy with their financial portfolios", that has to be higher than the Boomers when they were 25. I had a bunch of debt and was underpaid and overworked at that point in my life and I'm doing just fine now. I employ a number of millennials and find them to be outstanding employees who are better educated and far more able to think creatively and problem solve than those in my Gen X generation and especially those in the boomer generation. I'm happy for my competitors to keep up this unsupported idea that millennials are a bunch of entitled fools though, it allows me to take advantage of their talent and outmaneuver the Elena Holodnys and S2007Ss of the world.
It seems like it's wealthy parents to support their kids, who turn around and put most of that money back into the economy, than for them to save it.
intergenerational transfer of wealth is the best way to create a sizeable estate. In many cases it can reduce tax burden. It would be interesting to see during the RE crisis how many people whose parents gave them the original 20% down were foreclosed on (provided they never refinanced.)
I don't know too many 65 year olds with portfolios to retire on....in fact there are plenty of people who rarely have anything to live on as they live paycheck to paycheck and rely on their pention and social security.... I know dozens of people who are brilliant and bright and have not an idea how to buy and sell a single stock....most 25 years olds probably didn't have a clue what a portfolio was when asked that question.... They probably thought their portfolio of music and apps in their phone when asked that question.
No where in the article did it mention that the parents were rich and wealthy....it mentioned that even though these kids are making 6 figures most are still going to mommy and daddy for assistance.... I think most of them are making more than their parents and still asking for handouts.....these aren't trust fund kids who come from families where they are in the top 1- 5%
Again with the assumption that millennials are idiots. You know one other thing I've found working around millennials is that they're a lot less judgemental than the grumpy old men, and thus much more pleasant to be around. I'd also say they stereotype less, but that would be a stereotype wouldn't it!
you gotta start somewhere. It's not based on need or size. The same rules apply to all families. Give more than your family gave you. And if they gave you nothing, be the first to pass it on. That's how wealth is created.