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Assumptions:
• 25 years between generations
• Healthcare inflation: 5.8% annually
• General inflation: 3.2% annually
• Portfolio return: 7.5% annually
• 25 years between generations
• Healthcare inflation: 5.8% annually
• General inflation: 3.2% annually
• Portfolio return: 7.5% annually
Understanding Multi-Generational Wealth Planning
How It Works
What We Calculate:
- • Investment growth over time
- • Inflation impact on purchasing power
- • Healthcare cost increases
- • Real value for each generation
Key Factors:
- • 25-year generation gaps
- • Healthcare inflation: 81% higher than general
- • Historical market returns
- • Currency-specific inflation rates
Estate Planning Tip: This shows why growth investments and healthcare planning are crucial for preserving generational wealth against inflation.
Methodology & Data Sources
Calculation Methodology
Investment Growth:
Nominal Value = Initial Wealth × (1 + Portfolio Return)^Years
Inflation Adjustment:
Real Return = Portfolio Return - Inflation Rate
Inflation-Adjusted Value = Initial Wealth × (1 + Real Return)^Years
Healthcare Erosion:
Healthcare Factor = 2% × Generation Number
Healthcare Loss = Adjusted Value × Healthcare Factor × Healthcare Multiplier
Key Assumptions
Generation Gap:25 years
Healthcare Multiplier:1.81× general inflation
Healthcare Impact:2% per generation
Inheritance Age:25-30 years
Data Sources & References
Inflation Data
- • U.S. Bureau of Labor Statistics (BLS)
- • Bank of England Historical Database
- • European Central Bank Statistical Data
- • Statistics Canada Consumer Price Index
- • Reserve Bank of Australia
- • Swiss National Bank
- • Bank of Japan
- • Reserve Bank of New Zealand
Market Returns
- • S&P 500 Historical Returns (1913-2024)
- • FTSE All-Share Index (UK)
- • EURO STOXX 50 (Europe)
- • TSX Composite Index (Canada)
- • ASX All Ordinaries (Australia)
- • Government Bond Yield Data
- • Corporate Bond Historical Returns
- • Mixed Portfolio Benchmarks
Healthcare Cost Analysis
Healthcare inflation data sourced from national health expenditure accounts and medical care price indices. The 81% multiplier reflects the historical average of healthcare cost increases relative to general inflation across developed economies from 1980-2024.
Sources include: Centers for Medicare & Medicaid Services (CMS), OECD Health Statistics, World Health Organization Global Health Expenditure Database, and national healthcare cost surveys.
Disclaimer: All projections are estimates based on historical data and should not be considered as financial advice. Actual results may vary significantly due to market volatility, policy changes, and unforeseen economic events. Consult with qualified financial and estate planning professionals for personalized guidance.