Tuesday, April 29, 2008

The Decline of Inherited Money

The 1.14.2008 Wall Street Journal "Wealth Report" provides data regarding the claim that "inheritance is not the main driver of today's wealth." Some of the datapoints include:

1. According to a study of Federal Reserve data conducted by NYU professor Edward Wolff, for the nation's richest 1%, inherited wealth accounted for only 9% of their net worth in 2001, down from 23% in 1989. (The 2001 number was the latest available.)

2. According to a study by Prince & Associates, less than 10% of today's multi-millionaires cited "inheritance" as their source of wealth.

3. A study by Spectrem Group found that among today's millionaires, inherited wealth accounted for just 2% of their total sources of wealth.

Click here to read the article.

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