The Broken Promise of Technology & Why Early Wealth Transfers Matter

The promise of technology has always been to make people more productive and make products cheaper. If you can produce faster, you should be able to reduce costs, because you can create or achieve the same results in a fraction of the time - or, in the same amount of time, you should be able to achieve higher-quality results.

I recently spoke with a business owner (not a client) who told me he bought a new machine for packaging his products. With the old machine, it took about three hours to package X amount. The new machine packages the same amount in 1/4 the time.

Fantastic, right? Absolutely. The business owner has dramatically increased his efficiency, which will only help him continue to grow and increase his margins.

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The Problem No One Wants to Talk About

But here’s the catch: prices for his products have nearly doubled over the past 3 - 4 years. Now, the business not only benefits from much faster production, but also from higher prices, boosting profits even further. While the cost of the new machine needs to be recouped, that’s what the improved efficiency - and the margin it creates - should achieve. Yet prices remain elevated, and consumers are left holding the bag.

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Why does this matter?

Because young people, especially Gen Z, are bearing the brunt of these realities. It’s easy for those of us with strong incomes or significant assets to dismiss what they’re experiencing.

We often act like they need to "earn their stripes" because we did. But let’s pause to consider what’s happened to them in the past few years:

COVID-19 disrupted two or more years of schooling for many, affecting high school, college, and early careers.

Inflation ran above 4% annually for over 30 months straight - peaking at more than 9% year-over-year in 2022 - and while it has cooled, prices for essentials like housing, food, and energy remain well above pre-pandemic levels.

The Federal Reserve raised interest rates at the fastest pace since the 1980s, pushing mortgage rates to highs not seen in over two decades and driving loan costs through the roof.

Entry-level job markets tightened, with fewer roles offering growth opportunities or stability right out of school.

AI has begun reshaping industries, threatening many entry-level positions and adding uncertainty to career planning.

Home prices surged more than 40% in many markets since 2019, with inventory still limited, putting first-time homeownership further out of reach.

Technology was supposed to make our lives faster, easier, and cheaper. But despite all the innovation, these economic realities show it hasn’t translated into more affordable living or greater security for younger generations.

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Why Passing on Wealth Early Makes a Difference

This is one reason I’m a believer in passing on wealth during your life, instead of keeping it until it's passed on as an inheritance.

I’d be surprised if anyone said they’d rather inherit $1 million when they’re 60 than receive $100,000 when they’re 30. Even though $1 million is a lot more, the power of $100,000 at 30 is exponentially greater. Early financial support can help younger family members buy a home, pay off student loans, start a business, or invest in their future - giving them a foundation to build on when they need it most.

By the time someone inherits later in life, after they’ve already built their own foundation, that money moves the needle only slightly. But when you give while you’re still here, you don’t just transfer dollars - you transfer opportunity, confidence, and stability.

Most importantly, the feelings of happiness, fulfillment, and profound purpose that come with strengthening your family tree or building your community are unmatched. There’s no better way to create a living legacy than to see the impact your gifts have today.

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If you’re ready to start passing on your wealth responsibly, in a way that brings your family together, aligns with your values, and helps you build a stronger community, let’s talk.

Jose Alvarez

Founding Advisor

Harvest Horizon Wealth Strategies

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The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.