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Peter Thiel warns US real estate ‘catastrophe’ will deal massive blow to young Americans, but boomers might get windfall
Yahoo Finance· 2025-12-27 13:27
Core Insights - Peter Thiel connects rising home prices to inflation, emphasizing that rent is a significant cost for lower-middle-class individuals, more so than groceries or eggs [1] - A Reuters poll indicates that U.S. home prices are expected to rise by only 1.4% in 2026, suggesting a slowdown in growth compared to previous years [1] - The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index shows a 45% increase in home prices over the past five years, indicating that the average value of a single-family home has nearly doubled [2] Housing Market Dynamics - Thiel highlights that population growth in cities leads to disproportionate increases in house prices, which rise by 50% while salaries do not keep pace, resulting in wealth transfer from younger generations to older homeowners and landlords [3][6] - The inelastic nature of real estate, particularly in areas with strict zoning laws, exacerbates the housing crisis [3] - Federal Reserve Chairman Jerome Powell has echoed concerns about the ongoing housing shortage, stating that there is not enough housing supply to meet demand [7] Housing Shortage Statistics - The U.S. faced a housing shortage of 4.7 million properties in 2023, despite the addition of 1.4 million new homes [8] - Elevated mortgage rates are a significant barrier for many Americans trying to enter the housing market, with rates projected to average 6.28% in 2026 [9] Investment Opportunities - The article discusses various investment strategies in real estate, including fractional ownership and crowdfunding platforms, which allow individuals to invest in rental properties with lower capital requirements [13][18] - Commercial real estate, particularly grocery-anchored properties, is highlighted as a resilient investment option amid high vacancy rates in other sectors due to the pandemic [20][22] - First National Realty Partners (FNRP) offers opportunities for accredited investors to invest in essential goods properties, with a minimum investment of $50,000 [22][23]
Hagerty's classic-car market predictions for 2026
Youtube· 2025-12-17 18:27
Market Overview - The classic car market has shown strong performance in 2025, with significant activity in live auctions, digital sales, and private transactions, indicating a solid year overall [2][3] - There is optimism that this strength will continue into 2026, with no indicators suggesting a downturn [3] Supercar Segment - The supercar segment has emerged as the biggest story of 2025, with 80% of vehicles purchased by major collectors being supercars, particularly models from the 1990s and later [4][5][6] - New manufacturers and boutique brands are contributing to the growth of this segment, with high-value cars being sold rapidly [7] Generational Trends - The baby boomer generation is simplifying their collections as they age, while younger generations (Gen X, millennials, Gen Z) are beginning to enter the market and show interest in car collecting [10][11][12] - The anticipated wealth transfer of approximately $4 trillion annually is expected to influence the classic car market, as younger generations inherit and decide the fate of these vehicles [13][14] Market Dynamics - Luxury car manufacturers are producing and selling vehicles in greater numbers than in the past, with brands like Ferrari and Lamborghini setting record sales [17][18] - The market is also seeing a rise in interest for trucks, SUVs, and vintage restorations, indicating diverse opportunities for collectors [19][20] Collector Insights - A list of 11 cars has been identified as great value options for collectors, including iconic models like the Porsche Carrera GT and more affordable options like the Mazda Miata [22][23] - The Porsche 911 continues to be a strong investment, with various generations maintaining popularity among collectors [30] Economic Indicators - The strength of the classic car market is linked to consumers feeling positive about their financial situations, which encourages purchases despite uncertainties like tariffs [34][36] - The performance of the stock market is seen as a potential tailwind for the classic car market, as strong stock performance may lead to increased spending on luxury items [37]
X @Forbes
Forbes· 2025-12-08 22:00
How Christmas memories shape each generation’s attitudes and expectations about money, the Great Wealth Transfer, and how trillions may move across families. https://t.co/BRmAy8Umax ...
Rising stocks and IPOs helped create 287 new billionaires this year
CNBC· 2025-12-08 13:15
Group 1: Billionaire Growth and Wealth - The global billionaire population increased by 287 this year, totaling over 2,900, driven by rising stock markets, merger activity, and inheritances [1] - Billionaire wealth reached a record $15.8 trillion, marking a 13% increase from the previous year [2] - The past four years saw 727 new billionaires, increasing the total by 27% [3] Group 2: Sources of New Billionaires - The new billionaires emerged from diverse industries, including software, genetics, restaurants, infrastructure, and natural gas [3] - Notable new billionaires include Ben Lamm (Colossal), Michael Dorrell (Stonepeak), and co-founders of Venture Global [4] Group 3: U.S. Billionaire Landscape - The U.S. led the increase with 92 new self-made billionaires, representing a wealth of $180 billion, with 924 billionaires residing in the U.S. [6] - The total wealth of American billionaires rose by 18% to $17.5 trillion, with 75% being self-made [6] Group 4: Inheritance and Wealth Transfer - In the past year, 91 individuals became billionaires through inheritance, receiving nearly $300 billion in total [7] - An estimated $5.9 trillion will be inherited by children and spouses of billionaires over the next 15 years, primarily in the U.S. [7] Group 5: Investment Trends Among Billionaires - 43% of billionaires plan to increase their public equity investments in the next 12 months, despite market concerns [9] - 50% intend to add to direct investments, while 37% plan to increase private equity fund investments, though 28% will reduce private equity fund investments [10] Group 6: Changing Investment Sentiments - Confidence in U.S. investment opportunities has declined from 80% to 64%, while optimism for Europe rose from 18% to 40% and for China from 11% to 34% [11] - A significant portion of billionaires (36%) have relocated, citing quality of life, geopolitical concerns, and tax organization as reasons [12][13]
RIA Edge Private Markets: Alts Investing for Clients May Boost Valuations
Yahoo Finance· 2025-12-04 20:44
Core Insights - The push for registered investment advisors (RIAs) to provide clients access to private market investments may enhance firm value during sales or mergers, beyond just diversification and yield [1] Group 1: Market Trends - The $16 billion RIA, Sanctuary Wealth, has embraced private market investing, leading to benefits in client lead generation, retention, and overall firm value [2] - The growth of underlying assets due to market appreciation from private market investments could increase firm multiples from approximately 2.5x to 3x over a 10-year period [3] - Macro factors such as a shrinking pool of public companies and stock market concentration are driving interest in private markets, alongside strong returns from private equity [4] Group 2: Wealth Transfer Dynamics - A significant $100 trillion wealth transfer between generations is influencing client retention and growth for RIAs, with younger generations favoring private market options over traditional investments [4][5] - Approximately $20 trillion of the wealth transfer is tied to real estate holdings, highlighting the need for advisors to be knowledgeable in managing private real estate investments and tax strategies [5] Group 3: Tax Strategies - Advisors must be well-versed in real estate tax strategies, such as 1031 exchanges and 721 exchanges, to effectively manage client assets and capitalize on wealth transfer opportunities [6] - Failing to focus on private markets and relevant tax strategies could result in losing 20% to 50% of assets during generational wealth transfers, while adopting these strategies may enhance business performance and firm valuation [7]
X @Investopedia
Investopedia· 2025-11-23 21:00
Learn about the ongoing multi-trillion dollar U.S. wealth transfer and how you as a benefactor or heir can make the most of it through estate planning. https://t.co/XYBUeLl0qj ...
The Largest Wealth Transfer in History—What It Means for Your Finances and Savings
Yahoo Finance· 2025-11-23 12:16
Core Insights - The U.S. is on the verge of the largest wealth transfer in history, with approximately $84 trillion expected to be passed from baby boomers to their heirs by 2045, significantly impacting personal finances and the economy [3][4][5] - Generations such as Millennials and Gen Z are expected to inherit the largest share of this wealth, but many are not adequately prepared for financial planning, which may affect their financial decisions and the economy [1][2][4] Wealth Transfer Impact - The timing, tax implications, and distribution methods of this wealth transfer will influence how much heirs receive and shape their financial decisions, investment markets, housing prices, and retirement planning [2][4] - Approximately 42% of the total wealth transfer will come from just 1.5% of high-net-worth households, indicating a concentrated impact on wealth distribution [13] Tax Rules and Strategies - The estate tax exemption allows individuals to transfer up to about $13.99 million tax-free to heirs during their lifetime, with married couples able to transfer up to $27.98 million [6][7] - An annual gift exclusion permits individuals to give up to $19,000 per person without reporting it to the IRS, which can be strategically utilized to manage wealth transfer [8][9] Step-Up in Basis - The step-up in basis provision allows inherited assets to reset their cost basis to current market value, resulting in significant tax savings on capital gains for heirs [10][11] Trusts and Estate Planning - Trusts are beneficial for controlling asset distribution, avoiding probate, and protecting beneficiaries from financial mistakes, while also potentially reducing estate taxes [12] - Comprehensive estate planning, including wills, trusts, and gifting strategies, is essential for preserving wealth and ensuring a smooth inheritance process [15][20] Communication and Preparation - Open communication about inheritance plans among family members is crucial to prevent disputes and ensure everyone is aligned [16][17] - Families should engage with financial planners and attorneys early to organize their estate and avoid pitfalls related to estate taxes and asset distribution [15][20]
X @Nick Szabo
Nick Szabo· 2025-11-19 00:04
RT Johann Kurtz (@JohannKurtz)Very proud to release 'Leaving a Legacy: Inheritance, Charity, & Thousand-Year Families'.The book addresses a key question: Why should we leave wealth to our children and not to charities?Clarity is necessary. We're on the verge of the greatest wealth transfer in history as the post-war generation nears the end of their lives.A crisis of confusion has gripped our family leaders:Should they leave their wealth to their children, or would this spoil and corrupt them? Should they g ...
X @Bloomberg
Bloomberg· 2025-11-18 15:17
Rich British families are looking for ways to pass on their money after tax changes under Labour. Read more on how they're doing it: https://t.co/MSSAwy2zZC📷: WPA Pool/Getty Image https://t.co/7yWbsZyNpI ...
X @Bloomberg
Bloomberg· 2025-11-18 05:10
Rich British families are looking for ways to pass on their money after tax changes under Labour. Here's how they're doing it https://t.co/KJk4gU2W5u ...