“I’ve most certainly taken the “transfer of wealth” into consideration. That massive transfer of wealth means, in most cases, that wealth is being diluted, not concentrated. It’s going from one parent/couple to two or more kids, plus charities, etc. It’s not “new” wealth (which might have an inflationary effect), but wealth that has been there all along. In many (most?) cases, in order for the heirs to tap that wealth, they need to sell real estate, not buy it. I see this as deflationary, not inflationary.”
Two points, boomers will spend that money at a mcu greater clip than the greatest generation ever did. Second, looking at my Mom and my relatives none of them own real estate anymore. They are all living in nursing homes, assited living and lifecare communities. They also all have LTC insurance that foots the entire bill for those in nursing homes or assisted living. I know this isnt the way everyone is but among upper middle class folks in metroplitian areas it seems to be more the rule than the exception. They lived carefully all their lives and preapred for this just like I am doing.
