Good point about the medical costs being a relatively recent development. However, I still think they are a huge hurdle to overcome if wealth staying in a family is to become widespread. Using the number you supplied of $50k/year, the median American at retirement age could afford about 3 years of care. (Not an expert on this, just used numbers from a google search link. This only applies for the middle class though, but essentially it means that you can’t earn a little bit more than average and pass it on to your kids to build up dynastic wealth, since for the middle classes at least, at end-of-life you pretty much hit a reset button.
essentially it means that you can’t earn a little bit more than average and pass it on to your kids to build up dynastic wealth
I don’t think it ever works like this—saving a bit and accumulating it generation after generation. The variability in your income/wealth/general social conditions is just too high. “Dynastic wealth” is usually formed by one generation striking it absurdly rich and the following generations being good stewards of it.
You seem to be grasping here. The OP talked about passing down old family fortunes, not problems building new ones. Whether EOL care expenses are a significant hurdle to the new wealth accumulation is an interesting but unrelated question. My suspicion is that if it is, then there ought to be an insurance one can buy to limit exposure.
Good point about the medical costs being a relatively recent development. However, I still think they are a huge hurdle to overcome if wealth staying in a family is to become widespread. Using the number you supplied of $50k/year, the median American at retirement age could afford about 3 years of care. (Not an expert on this, just used numbers from a google search link. This only applies for the middle class though, but essentially it means that you can’t earn a little bit more than average and pass it on to your kids to build up dynastic wealth, since for the middle classes at least, at end-of-life you pretty much hit a reset button.
I don’t think it ever works like this—saving a bit and accumulating it generation after generation. The variability in your income/wealth/general social conditions is just too high. “Dynastic wealth” is usually formed by one generation striking it absurdly rich and the following generations being good stewards of it.
You seem to be grasping here. The OP talked about passing down old family fortunes, not problems building new ones. Whether EOL care expenses are a significant hurdle to the new wealth accumulation is an interesting but unrelated question. My suspicion is that if it is, then there ought to be an insurance one can buy to limit exposure.