By Stephen Tweed
We’ve heard for several years now about the trillions of dollars that members of the Baby Boom Generation will inherit. However, we have not seen many actual numbers.
This past Saturday, I was flying back to Louisville and picked up a copy of the Wall Street Journal, Weekend Edition in the airport news stand. In the WSJ Money Magazine that was included in the newspaper, there was an article on this very issue with some hard numbers. Here’s what they said:
- Baby Boomers are expected to inherit $7.6 trillion over their lifetimes
- The annual GDP of China is $7.3 trillion.
- In 2011, there were nearly 14 million people with a net worth of $500,000 to $1 million.
- There were nearly 9 million people with a net worth of $1 million to $5 million
- There were about 1 million people with a net worth of $5 million or more
Who says people can’t afford to buy home care services? We just need to find them.
The data also showed the breakdown of the total portfolio of net worth for households aged 65 and older:
- House – 33.1%
- Stocks – 10.1%
- Mutual Funds – 6%
- Bonds – 2.4%
- CDs – 2.3%
- Bank Accounts – 4.4%
- Other financial Assets – 6.1%
- Business Assets – 18.3%
- Retirement Funds – 9.4%
- Other non-financial Assets – 7.9%
Source: Wall Street Journal.Money – March 9, 2013
What can you learn from looking at these numbers?
These data suggest that high net worth households have a significant portion of their assets in their homes and in their own businesses. That suggests that we should be looking at business owners as high potential candidates for home care services. It also suggests that looking for business owners who have aging parents can be in a pathway to new clients.
How can you identify local business owners who might be candidates for home care services?
What types of businesses do you think these people own?
Give us your comments based on what you are seeing in your business.