• [WEBCAST] Rickards: How To Protect Your Wealth (When This Bubble Bursts)

    Outspoken author and investor James Rickards has a pro-to-pro discussion with Hedgeye CEO Keith McCullough live Friday, July 26th at 10:30am ET. Replay available after the interview.

Editor's Note: Below is an excerpt from a recent research note written by our Demography analyst Neil Howe. To access Neil Howe's research research email sales@hedgeye.com.

80% of Boomer Parents Provide Financial Support to Young-Adult Children  - zfa

Out of every ten parents of young-adult children (age 18 to 35), eight are providing them with some kind of financial support. This new Merrill Lynch-Age Wave survey reveals the full extent to which today's Boomer-age parents continue to take parenthood seriously and often jeopardize their own financial future by putting their kids' needs first. (CBS This Morning)

Yes, 79% of these parents say they're providing their grown-up kids with financial support.

More impressive is the estimate by the Merrill Lynch/Age Wave study of the aggregate transfer amount: $500 billion annually, which is more than twice what these parents are putting into their own retirement accounts.

Between 20% and 30% of these parents report paying all of their kids' expenses in the following categories:

  • food
  • cell phone
  • school
  • rent/mortgage
  • vacations

With parenting becoming such a lifelong suicide pact, it's understandable that Millennials themselves have come to see affluence as a prerequisite to having any child in the first place.

Among the (mostly Boomer) parents whose oldest child was born in the 1970s, only 31% say that "finances played a role" in the decision to have a child.

Among the (mostly Millennial) parents having babies today, that share has risen to 71%.

80% of Boomer Parents Provide Financial Support to Young-Adult Children  - z neil Jan13 chart2