The Intergenerational Transfer of Wealth
A Unique Opportunity for Reinvestment
The Nebraska Community Foundation has completed an analysis of the intergenerational transfer of wealth likely to occur in Shickley and Fillmore County over the next 50 years. The analysis has generated some dramatic estimates, including:
The peak period for transfers of wealth will occur in 2020, and will decline sharply for 30 subsequent years;
This wealth transfer in Fillmore County currently exceeds $23 million per year;
The total wealth transfer in Shickley is estimated at $68 million over the next 50 years, or nearly $181,000 for each of Shickley's 340 residents.
The opportunity exists to create a substantial "community trust fund" that will support the community needs of the Shickley area in perpetuity. For example, over the next ten years an estimated $13.6 million will transfer in Shickley. If today's residents gifted just 5 percent of that transfer into a community trust fund, it would create an endowment of $680,000 within ten years. Assuming a conservative 5 percent annual payout rate on such an endowment, $34,000 per year would then be available every year for community betterment investments.
What would Shickley look like if thousands of dollars were reinvested annually in community-based education, health care, libraries, parks and recreation, community infrastructure and quality-of-life enhancements?
Alternatively, the threat: what happens if most of the transferred wealth leaves Shickley and Fillmore County and goes to taxes, non-local charities or heirs who live outside of Fillmore County? Will Shickley and the surrounding area thrive or struggle? Will young families leave Shickley or move to Shickley? Is Community pride greater or less?
Millions in wealth will transfer somewhere; the question is, where? The choice is clear. The goal to create a one million dollar endowment for the Community of Shickley is quite possible and achievable.
Help us ensure that Shickley will always be a place for living productive lives and for creating memories like those we all have about our hometown.