Proactive Conversations That Lead to Successful Wealth Transfer

With the largest wealth transfer in history looming as baby boomers retire, it’s crucial to plan for a successful transfer of assets to the next generation while they’re alive. Over the next 25 years, around $68 trillion is expected to shift from boomers to Gen X and millennials.

To ensure a smooth wealth transfer, consider these strategies:

Involve Your Financial Advisor: Make sure your heirs have a good relationship with your financial advisor or planner. This ensures they understand your financial values and how you’ve accumulated your wealth.

Have Proactive Conversations: Discuss your financial values, goals, and expectations with your heirs. These conversations can help guide them on how to manage and grow their inheritance wisely.

Create a Financial Strategy: Work with your financial advisor to establish a clear plan for your heirs. This may include paying off debts, saving for retirement, and making wise investment decisions.

Emphasize Financial Education: Ensure your heirs are financially educated and have the necessary skills to manage the wealth they inherit.

By addressing these aspects, you can not only pass on your wealth but also instill financial values and responsible habits in the next generation, ensuring a more meaningful and lasting legacy.

Video Transcript

Wealth transfer from generation to generation is becoming a more and more popular topic that we get questions about. And today, Jameson’s going to walk us through some of the most successful ways we’ve seen the wealth transfers take place, actually while living, not just when someone passes.

So as baby boomers begin to phase into retirement, America is poised to see the biggest wealth transfer in history. Over the next 25 years, expected, about $68 trillion will transfer from baby boomers to Gen X and millennials.

Important to have a good strategy in place and some proactive conversations that we’ve found very beneficial to have with children that are about to inherit money. Similar situation as to why a lot of athletes go broke if there’s no values in place or no good habits, discipline habits.

People can inherit a bunch of money at one time and all of a sudden just spend it because they have never worked to accumulate it. They don’t have the habits and disciplines in place to maintain the wealth.

So a couple of things that we found very helpful. Number one is just making sure that whoever’s going to inherit the money, they have a good relationship with your financial advisor, financial planner, whoever works on your finances to make sure that they understand your values and how you’ve accumulated the money and what you’ve done to save and maintain.

And the second thing is making sure that you have a good proactive conversation. Again, we’ve seen financial advisors being able to help with what you envision your kids or whoever’s inheriting the money, what you want them to do with the money.

So paying off debt, saving into retirement accounts. Maxing Roth IRAs having a strategy around where the money is actually going to go when they inherit it. What we’ve found is a lot of times, if there are not proactive conversations in place, just human nature is that it’s uncomfortable to talk about money and finances.

With your kids, with your family. So first, might be an uncomfortable conversation to bring up. Finances will lead to a successful wealth transfer and making sure the next generation not only receives but maintains the wealth throughout their lifetime.

Jameson that’s. A staggering statistic. $68 trillion. We look forward. To having these uncomfortable. Conversations, but hope. To be a catalyst. For you and your kids to max not wealth transfers, but maximize the values and your legacy in a much different way.

To make sure that the values are passed on to the next generation.

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