I would say, “I’m shocked!,” except I’m not. In January the Bankers Life and Casualty Company Center for a Secure Retirement released a study that revealed Baby Boomers don’t know much about Medicare, and before I read about that, I didn’t know much about Medicare either. One in seven middle income people under 65 believe medicare is free. (It isn’t.) Most don’t know that Medicare doesn’t cover vision or dental, or that many long term care facilities will not accept medicare. In fact, the only way to get Medicare to cover long term care is to completely go through all your financial assets. The study also showed most boomers don’t understand healthcare reform and the benefits it affords them (the program currently being put into place). So now is the time to educate yourself. Ask your employer (or if the coverage will be through your spouse, your spouse’s employer) how much of your pension will go toward medicare supplemental insurance. If you’re financing your own retirement, research costs. Click here for a primer from Kaiser Health News. An even better source come from the AARP. There was some good news in the Bankers Life study, though. Eight in ten middle-income Americans with Medicare are extremely or very satisfied with Medicare’s access to healthcare (81%) and with the quality of healthcare Medicare provides (83%). Nine in ten (93%) of middle-income Americans ages 47 to 75 feel they have a greater awareness of healthy living now than they did when they were in their 20s. Other studies say they’re acting on it too, trying to eat more healthily and getting more exercise. So if you’re a Baby Boomer, when you finish reading up about Medicare, get up and move. If you’re a younger person with parents who are retired or about to, how about talking to them about Medicare to make sure they know how to get the most out of their Medicare benefits? The healthier our seniors and Baby Boomers, the better off we’ll all be.
The first mention of the article came to me by way of Twilert–my morning hashtag delivery service–via some young guy named Charz Kelso. (Coming attraction: I’ll talk about Twilert on my next post about Baby Boomers and Twitter.) True, we can all use 30-year-old pictures of ourselves as Twitter avatars (translation: pictures), so maybe Charz Kelso isn’t a Gen Yer angry at his parents. But this was his tweet:First off, I don’t get the idea of someone mad about not getting his inheritance. A woman I know once complained bitterly while her parents’ estate was being settled that she wanted her money. “Her money,” I thought. “It’s your parents’ money. They worked for it. They had the right to do with it whatever they want.” So I object to that kind of spoiled kid attitude, whether the person is six or sixty-six. An inheritance, should one be so lucky, is a gift, not something you are owed.
Anyway, next I clicked on the link in his tweet, which brought me to Time.com’s “Moneyland”: http://ti.me/oiPZF0. This article cited a study by U.S. Trust (a retirement investment company) that concluded that “a surprisingly low 49% of millionaire boomer parents said that leaving money to their kids was a priority.” They also referred to the Baby Boomer reputation for selfishness–something I hadn’t heard before and would much dispute. (The so-called “me” generation was around before Boomers had come of age.) I tried to check out the study itself, but the U.S. Trust page didn’t have a link. So I went to the original article in the L.A. Times. (http://lat.ms/oUvor4) The only information I got there was that U.S. Trust surveyed some millionaire boomers. But how many they surveyed, how they picked their sample, and so on I couldn’t ascertain. So I called a friend who manages money for millionaires. He was circumspect, of course. That’s his professional stance. But mostly he was “huh?” His logic? The multi-multi millionaires have more than they can possibly spend in their lifetimes, and their plans often include trusts for children and grandchildren.
The L.A. Times article also quotes Ken Dychtwald, a former economics guru who somehow manages to still be a quotable person, even though the recession flushed his “age-wave” theory down the tubes:
“Many boomers already are giving the equivalent of an inheritance, except they’re doling out the cash while they’re still alive, said Ken Dychtwald, chief executive of research firm Age Wave. They’re supporting elderly parents, adult children or other family members who are suffering professional or financial woes. ‘How can you say no when a child asks ask for a down payment for a house or money to remodel their house to have a bedroom for a second child?’ Dychtwald said. ‘A lot of boomers are finding that family members are taking cash advances on those inheritances right now.’”
In other words, come inheritance time, what with all we’ve spent sending out kids to college, helping them buy homes, getting our parents the best medical care, well, there just might not be that much money left. Let’s forget about the multi-millionaires. There aren’t that many of them anyway, and really, whether the Hiltons are putting away money for Paris or the Kardashians for their famous kids, I don’t give a hoot.
Let’s talk instead about the upper middle class or regular old middle class baby boomers whose 401ks and other retirement investments kind of shrunk during the recession. We aren’t nearly as rich as we thought we were. We also can expect to live well into our 80′s. It might be really hard if we want or need to retire to live just off principal so that there will be a chunk of money available (when we die) to our heirs. The continued resistance, indeed vilification, of a sensible medical system where people could get good care for relatively little money–the kind of system in place in Canada, Israel and many Western countries–makes more plausible the possibility that we shall have to finance our own care should we get hit with an illness in our older years.
I might have ignored this tweet, except that Creating Results (http://creatingresults.com), a PR company that focuses on BabyBoomers and seniors and that usually tweets important information about this enormous cohort of our population, picked up the same quote as Charz Kelso, and tweeted this:
To which I replied, “no way, silly study,” or somesuch. They came back with this (and by the way, I’m @wordwhacker on Twitter, for those of you who don’t know):
And that’s the point. For most of us, decisions about inheritance might be moot. We are not selfish. Far from it. So many of us are right now helping out unemployed recent college/professional school graduates. How could we possibly do otherwise? They’re our kids. Or we might be paying medical bills for the elderly and infirm. But how could we do otherwise? They’re our parents. Personally, I am grateful for how comfortable my husband and I are. And if we somehow amass a nice chunk of cash before we die, I’ll be really happy for my kids to have it. I’m glad I’m not so rich that I’m too busy spending everything I’ve got so that there will be nothing left for my children and (I hope) grandchildren when I leave this earth.
One more thing: Charz Kelso’s tweet reminded me of other ones that come through on my #babyboomer Twilert feed or comments I read online–young people all lathered up into a fury by right wing Republicans and Tea Party-ers because they say we’re taking their money when we get Social Security and Medicare Baby Boomers. I’m not going to argue that there aren’t problems with the way Social Security is set up now because there does seem to be a tipping point a couple decades from now when the system could go broke. Nonetheless, it’s not “their” money we’re getting. It’s money that has been taken from our paychecks every day of our working lives. It belongs to us. It is not a gift. It has been an investment.
Some things to consider:
- Clue your kids in about your finances. No, not when they’re in their teens, but if they’re adults, they should know where your money is invested and how you foresee financing the rest of your lives.
- Talk to them about what they’ll inherit. Look, we’re getting on to 60, and people die. Adult kids should have some idea how to access your assets. At some point, you should also have the “Suzie gets grandma’s china” discussion. Find out what is important to them and write it down. Your lawyer can keep a copy.
- Speaking of lawyers, have a will and a living will. Even if you don’t have that much money, it’s important that you leave clear instructions about what you want to happen when you die. Do you want your kids to sell your house and split the proceeds, or are you hoping one of them buys out the others? Be clear. Also, make it known what you want to happen to you–do you want “heroic measures,” i.e. feeding tubes, if you’re in a coma an not expected to revive? Do you want to be buried or cremated?
Finally, a shout out to Charz Kelso (who seems maybe to live in Singapore): That was a really well done tweet. For those of you interested in what makes a good tweet, note that he has all the elements: A new and interesting idea; a hashtag (#inheritance) under which this tweet will be filed and seen; a link to an article; wit.
As always, you can leave your comments here on the blog. You can find me on Facebook at facebook.com/Linda.Bernstein or facebook.com/LindaBernsteinPhD. On Twitter I’m @wordwhacker. Do you think Baby Boomers are selfish? Let me know.