3/8/2017 Orientation TAC Meeting Rural Maryland Transfer of Wealth Opportunity Project March 28, 2017 Charlotte Davis Welcome – Introductions – Project Rationale College of Southern Maryland’s Role Don Macke Center Team Introductions – Session Overview 1
3/8/2017 Don, Deb, Cathy, Dana & Eric Methodology – Ground-Truthing Process Orientation Flow 1. Welcome, etc. 2. Center Team & Session Review 3. America’s TOW Opportunity 4. Methodology Review & Ground-Truthing 5. TAC & How We will Work 6. Preliminary Analysis 7. Critical Questions 8. Next Steps 9. Wrap Up & Thanks Please refer to the agenda for greater detail. Transfer of Wealth 2
3/8/2017 Philanthropic Opportunity TOW is the inter-generational transfer of household wealth or estates. US Net Worth Trend 1945-2015 (trillions $) $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 1945 1947 1949 1951 1953 1955 1957 1959 1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 Annual Rate of Growth for US Household Current Net Worth Decade Annual Growth Rate 1945-1950 3.47% 1950-1960 4.48% 1960-1970 4.09% 1970-1980 3.08% 1980-1990 3.47% 1990-2000 5.77% 2000-2010 -0.12% 2010-2015 +0.39% 3
3/8/2017 Average Net Worth by Age $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Less than 25 25-34 35-44 45-54 55-64 65-74 75+ All households 2007 Avg. Net Worth 2010 Avg. Net Worth 2013 Avg. Net Worth Average Net Worth by Educational Attainment $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 No HS diploma HS diploma Some college College degree All households 2007 Avg. Net Worth 2010 Avg. Net Worth 2013 Avg. Net Worth Average Net Worth by Work Status Chart 3. Average Net Worth by Work Status $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Work for someone Self-employed/ Retired Not working All households else partnership 2007 Avg. Net Worth 2010 Avg. Net Worth 2013 Avg. Net Worth 4
3/8/2017 Methodology Background Paper Historical Trends Population Forecasts Economic Scenarios Personal Income Scenarios Wealth Formation Scenarios Giveback Potential TOW Scenarios Technical Advisory Committee (TAC) Members’ Role Share Knowledge | Test & Verify Findings | Help with Education � Demographic patterns � Economic development and wealth formation trends � Wealth holding patterns within the community � Unique populations like immigrants, Amish, unionization, etc. � Historic and projected personal income trends � Household income status (e.g., sources, extent) � Real estate holdings and market valuations � Asset holdings (e.g., home ownership, vacation homes) About the Project � Estimate household net worth in 2016 � Estimate 10-year (2016-2025) and 50-year (2016-2065) transfer of wealth opportunity � Produce transfer of wealth timing charts � Produce estate transfer charts � Illustrate source of wealth in 2016 by asset types like property, investments, etc. 5
3/8/2017 Online resource https://goo.gl/xFccDP Dana Williams – dana@e2mail.org or 402.323.7336 Questions & Discussion Preliminary Analysis 6
3/8/2017 Maryland Urbanization Map Regional Analysis Western MD Eastern Shore DC / Baltimore Southern MD Urban 2016 Household Current Net Worth ESRI Estimates for 2016 Median CNW - $187,201 Mean CNW - $812,500 Gross CNW - $528.3 Billion Discounted CNW Estimates High Capacity – 27.8% 180,459 Households 65-74 Age Group ANW - $1.4 mil 7
3/8/2017 Mean & Median CNW $1,000,000 $867,881 $900,000 $812,500 $800,000 Ratio $700,000 Mean/Median $600,000 MD 5.3 $500,000 $400,000 $300,000 Rural 4.3 $187,201 $200,000 $164,151 $100,000 $0 Maryland Rural Median Mean Population Change 2.5% MD Rural MD 2.0% 1.5% 1.0% 0.5% ���� ���� ���� ���� ���� ���� 0.0% 1970-2015 2000-2015 2015-2021 Maryland Economic Drivers Personal Income Change 2015 Per Capita Values 2015 (thousands) 2001-2015 Benchmarked to the US Retirees $90,216,150 35.4% ���� Government $56,004,846 41.2% ���� Professional and $31,096,040 39.3% ���� technical services Health care and $25,411,658 48.9% ���� social assistance Construction $14,985,781 6.4% ���� Hardship Related $14,947,229 113.3% ���� Transfer Payments Finance and $12,544,759 16.9% ���� insurance ���� Retail trade $12,019,347 -6.8% Administrative and ���� $9,397,524 35.8% waste services Hospitality $9,140,269 29.1% ���� 0.75 1.00 1.25 1.50 1.75 8
3/8/2017 MD Rural Economic Drivers Personal Income Change 2015 Per Capita Values 2015 (thousands) 2001-2015 Benchmarked to the US Retirees $23,803,232 52.4% ���� Government $11,227,636 44.5% ���� Health care and $5,161,212 53.9% ���� social assistance Professional and $4,708,799 75.2% ���� technical services Hardship Related $3,890,059 131.1% ���� Transfer Payments Construction $3,618,880 3.4% ���� Retail trade $3,340,339 4.9% ���� Manufacturing $3,064,418 -17.2% ���� Hospitality $2,216,495 55.5% ���� Other services, ���� except public $1,904,130 25.8% administration 0.50 0.75 1.00 1.25 Questions & Discussion Critical Questions 9
3/8/2017 Critical Questions 1. Demographic Changes? 2. Economic Changes? 3. Personal Income Changes? 4. Estate Wealth Formation? 5. Key Trends? 6. Curves in the Road? 7. Resources? Questions & Discussion Next Steps – Don Wrap Up & Thanks - Charlotte 10
3/8/2017 Project Schedule February – Project Start March – Model Development March 28 rd – First TAC Meeting April – Ground-Truthing Preliminary TOW Findings May – Research & Refined Scenarios Second TAC Meeting June – Final Findings Third TAC Webinar - Final Report July – Project Closeout Questions & Discussion For More Information Community Development Philanthropy Transfer of Wealth Don Macke don@e2mail.org Cathy Kottwitz ckottwitz@gmail.com Dana Williams dana@e2mail.org www.energizingentrepreneurs.org 11
Recommend
More recommend
