Northern Trust Survey “Wealth in Black America” finds Generational Differences Attitudes about Wealth Preservation and Wealth Transfer Differ

CHICAGO – October 8, 2008 – Young affluent Blacks are more worried about wealth preservation than their older counterparts, according to “Wealth in Black America,” Northern Trust’s first annual survey of affluent Black households in the United States, including African-Americans and Blacks of other origins. Three in four Generations X & Y wealthy respondents (ages 18-42) said they are concerned about preserving their wealth, while less than half of respondents in the Boomer and Silent Generations  (ages 43 and above) shared this concern. 

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The financial crisis, which has caused a dramatic decline in the value of the average worker’s account, has undermined confidence in the system.

By Jim Puzzanghera (LA Times)

Reporting from Washington — For nearly three decades, working Americans have been part of a huge experiment with their future well-being: Old-fashioned pensions that guaranteed specific retirement benefits have given way to old-age benefits that depend on personal investing in the financial markets.

But now, with those markets in crisis and the value of workers’ investments plunging, a bundle of ideas for modifying the system or replacing it entirely — ideas shunted aside when the stock market was soaring — are about to get a careful new look.

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Rich Dad, Poor Dad by Robert T. Kiyosaki

Robert Kiyosaki reveals how he developed his unique economic perspective from his two fathers: his real father, who was highly educated but fiscally poor; and the father of his best friend - an eighth-grade drop-out who became a self-made multi-millionaire. The lifelong monetary problems experienced by his “poor dad” pounded home the counterpoint communicated by his “rich dad”.

This book lays out his philosophy and aims to open readers eyes by: exploding the myth that you need to earn a high income to be rich; challenging the belief that your house is an asset; showing parents why they can’t rely on schools to teach their children about money; defining once and for all an asset versus a liability; and explaining what to teach your children about money for their future financial success. 

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Federal officials hope that the simpler, quicker procedure for modifying loans held by Fannie Mae and Freddie Mac will keep struggling homeowners from losing their houses.

By Jim Puzzanghera (LA Times)

Reporting from Washington — In an attempt to keep struggling homeowners from losing their houses, federal officials today announced a simpler and quicker procedure for modifying loans held by mortgage giants Fannie Mae and Freddie Mac and expressed hope that it would be adopted by the entire industry.

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In this article from Fortune.com, the author argues that people making between $250,000 and $500,000 are not “rich.”  He calls these people HENRYS (High Earners Not Rich Yet).  What do you consider “rich?”  $100,000?  $500,000?  $1 million?

Obama and the congressional Democrats frequently refer to households earning over $250,000 as the “rich” and the “wealthiest Americans.” But whether the HENRYs are truly “rich,” or ever will be, is debatable. In Fortune’s interviews with two dozen HENRYs from Charlotte to Concord, Calif., what emerged was a portrait of families a world away from the private jets, luxury vacation homes, and heated garages with Bentleys and Porsches lined up headlight to headlight that typically represent America’s vision of “rich.”

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