2008
Sep - Oct
Magazine

Baby boomers in the United States will create an economic boom -- the likes of which have never been seen -- as they transfer the wealth they’ve both acquired and inherited since World War II to the next generation.

In Nevada, the growing number of aging baby boomers,
many who are turning age 62 this year, are expected to
transfer wealth estimated at $33 billion dollars by 2015.

A Wealth Transfer Study released by the Community
Foundation of Western Nevada, the Nevada Community
Foundation and the Nevada Commission on Economic
Development, says the Silver State is home to some of the
wealthiest families and individuals in the country. The
study shows the total net worth of Nevada millionaires is
greater than the total worth of millionaires in other states.
“Six Nevada individuals or families were on the Forbes U.S.
billionaires list for 2006,” the study said.

Rural Economic Development Director, Joe Locurto,
Nevada Commission on Economic Development, says if
Nevadan’s used their philanthropy to transfer wealth to a
community foundation, the funds would be utilized to benefit Nevada communities to improve quality of life for
future generations. Charitable giving by donors could build
flexible endowments or be directed to specific community
development programs.

Joe Locurto, Nevada Commission on Economic Development, says if
Nevadans transferred wealth to foundations it would help future generations.

“If 500 families chose to leave $1,000 each, it would
make a powerful impact on the community,” Locurto said.
“Nationally baby boomers will transfer the inheritance they
receive from their parents, the Greatest Generation, along with their own wealth to the next generation to the tune of of some $41 trillion by 2052,” Locurto said. “Nevada is expected to realize an estimated $383 billion transfer over the same 50-year period; more than $33 billion will change hands in this intergenerational transfer over the decade between 2005-2015.

Ultra Rich & Nevada

While the Silver State is home to some of America’s
wealthiest families and individuals, “it isn’t just millionaires
and billionaires who can play a major role in the future of
Nevada Communities,“ said Mike Skaggs, executive director of the Nevada Commission on Economic Development. “Anyone with a passion for the Silver State can invest in its future.”

If baby boomers, who are now planning their estate or
writing wills, would earmark 5 percent of their estate for an endowment through a community foundation -- $1.6 billion would be available for investment in Nevada. At a
conservative 5 percent payout, those invested endowed
funds would create $81.17 million every year – forever.

The payout interest on those endowed funds could be
used in specific community betterment projects or dedicated to:

• Children’s and school programs
• Family resource centers
• Art and cultural museums
• Parks and Public Open Spaces
• Health and safety programs
• Entrepreneurial and small business projects
• A donor explicit program or project

In Washoe County, an estimated $5.8 billion is expected
to transfer from one generation to the next between 2005 - 2015. If just 5 percent was invested in a community fund, nearly $290 million would be gained. Assuming a 5 percent investment payout, nearly 14 and a half million dollars would be available annually.”

“Nevada has strong tradition of taking care of its own,”
said Community Foundation of Western Nevada, Executive Director, Chris Askin. “With the challenges rural communities face…the loss of youth who move to other towns to college and don’t come back, challenging economic times, depletion of natural resources, this program gives them a new way to ensure the future economic vitality and quality of life in their hometown.”

For more information on the Transfer of Wealth Study
and what it can mean for your Nevada community, visit
www.wealthransfernevada.com or contact: Community
Foundation of Western Nevada at 775-333-5499.