Quote:
Originally Posted by Pro Stock John
(Post 1551363)
I think the inheritance comment can't be generally true, only because there are always people dying and always people inheriting money. If that is constant then what is causing the recent spike in car prices. I think PPP might have impacted that like Mark said.
Speculating, maybe also individuals have saved more money for the last 14 months since many were not commuting, and also able to travel for leisure.
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Regarding the inheritance; I don't believe it is the MAIN factor. Even though I numbered them 1 and 2, I didn't mean to imply that was an order of priority or importance.
It isn't just that people are dying. It is the generation of folks who are dying; people that saved all their lives because the depression scared the chit out of them. I went to see my Mom after work today. She was wearing a robe that she made about 10 years ago. She still wears a winter coat she made. She didn't have a "store bought" dress til she went to high school. She mowed her own lawn until she turned 87. My Dad never finished HS and never made any decent money. My Mom stretched it beyond belief. Dad was making less than $5,500 per year in 1968, and they had four boys all in private schools. My Dad made the dining room table that is still in Mom's house. 40 years later, and it is still gorgeous. I didn't live in a house with central heat and air until second semester of my Sr. year in HS (1971). No big deal if you are in San Diego; big issue in central OK.
To that add this: over 572,000 more people died in 2020 than in 2019.
I am in the estate planning arena and I am a financial advisor. I have seen more money changing hands from one generation to the next in the last 10 months then any other 10 month period in the last 30 years. Granted, I am a tiny sample, but I believe, talking to colleagues around the country, that the trend is nationwide. Not ALL of the baby boomers who are inheriting are blowing it on cars. I have MANY new investors that inherited their money, and they are frugal folks. But not all of them are frugal.
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