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3/8/2017
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Orientation TAC MeetingRural Maryland Transfer of Wealth Opportunity Project
March 28, 2017
Charlotte DavisWelcome – Introductions – Project Rationale
College of Southern Maryland’s Role
Don MackeCenter Team Introductions – Session Overview
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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
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Philanthropic Opportunity
TOW is the inter-generational
transfer of household
wealth or estates.
US Net Worth Trend
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
19
45
19
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15
1945-2015(trillions $)
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%
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Average Net Worth by Age
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
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
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
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
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Work for someone
else
Self-employed/
partnership
Retired Not working All households
Chart 3. Average Net Worth by Work Status
2007 Avg. Net Worth 2010 Avg. Net Worth 2013 Avg. Net Worth
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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.
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Online resource
https://goo.gl/xFccDP
Dana Williams – [email protected] or 402.323.7336
Questions &
Discussion
Preliminary Analysis
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Maryland Urbanization Map
Regional Analysis
Western MD
DC / Baltimore
Eastern Shore
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
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Mean & Median CNW
Ratio
Mean/Median
MD 5.3
Rural 4.3
$164,151$187,201
$867,881
$812,500
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
Maryland Rural
Median Mean
Population Change
1.2% 0.9% 0.8%2.3% 1.1% 1.0%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
1970-2015 2000-2015 2015-2021
MD
Rural MD
Maryland Economic Drivers Personal Income
2015 (thousands)
Change
2001-2015
2015 Per Capita Values
Benchmarked to the US
Retirees $90,216,150 35.4%
Government $56,004,846 41.2%
Professional and
technical services$31,096,040 39.3%
Health care and
social assistance$25,411,658 48.9%
Construction $14,985,781 6.4%
Hardship Related
Transfer Payments$14,947,229 113.3%
Finance and
insurance$12,544,759 16.9%
Retail trade $12,019,347 -6.8%
Administrative and
waste services$9,397,524 35.8%
Hospitality $9,140,269 29.1%
1.10
1.63
1.48
1.12
1.25
0.94
0.89
0.98
1.12
0.98
0.75 1.00 1.25 1.50 1.75
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MD Rural Economic Drivers Personal Income
2015 (thousands)
Change
2001-2015
2015 Per Capita Values
Benchmarked to the US
Retirees $23,803,232 52.4%
Government $11,227,636 44.5%
Health care and
social assistance$5,161,212 53.9%
Professional and
technical services$4,708,799 75.2%
Hardship Related
Transfer Payments$3,890,059 131.1%
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
administration
$1,904,130 25.8%
1.01
1.14
0.79
0.78
0.85
1.05
0.95
0.54
0.83
0.87
0.50 0.75 1.00 1.25
Questions &
Discussion
Critical Questions
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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 – DonWrap Up & Thanks - Charlotte
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Project Schedule
February – Project Start
March – Model Development
March 28rd – 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
www.energizingentrepreneurs.org
Don Macke
Cathy Kottwitz
Dana Williams
