Why Families Should Start Planning for the Great Wealth Transfer Now, According to ComparisonAdviser Study
The Great Wealth Transfer makes financial advice a necessity now more than ever. With proper planning, one can ensure their wishes are met and preserve the wealth they pass on to their children.
REDMOND, Wash., May 29, 2024 (Newswire.com) - Over the next three decades, over $70 trillion will pass from the Silent Generation and baby boomers to Gen Xers, millennials, and Gen Z. According to a recent study by ComparisonAdviser, this emboldens the need for financial advisors more than ever. The article examines how the Great Wealth Transfer will play out, including who will benefit the most. Additionally, it assesses the obstacles families, including both the wealthy and their heirs, are likely to face before and during the transfer of wealth. Click this link to access the article: https://comparisonadviser.com/news-and-studies/great-wealth-transfer/.
From its name, it's easy for one to assume that the Great Wealth Transfer will cause trillions of dollars to simply flow through to younger generations, solving financial problems and making people all over the country wealthy. However, the study points out that the event will likely only benefit children of parents who have money to give once they pass away. But, perhaps more importantly, the article explains that without proper planning on the part of both wealthy parents and their heirs, individuals may fail to realize the full benefit of an inheritance. The study emphasizes that the following challenges come into focus when there's no plan in place for one's wealth:
- Family strife and drama due to unclear communication of wishes or perception of unfair treatment.
- The diminishing of wealth before one passes away due to healthcare costs, living expenses or excessive spending.
- Subjecting one's estate to taxes because they didn't gift funds or place them in a trust beforehand.
"Based on the insights we received from financial experts, lack of planning before one's passing can cause financial conflict among families because a person's wishes may not be met or their retirement may diminish before they're able to pass it on," says Sean Canonica, Senior Finance Writer at ComparisonAdviser and the author of the study. "In terms of the beneficiary, it's equally as important for them to seek assistance from a financial advisor to ensure they retain and, ideally, grow their windfall for years to come," continues Canonica.
The study concludes that, with proper planning and the assistance of a financial advisor, families can ensure that their wealth passes down to future generations without issue. "With the help of a financial advisor, anyone with money to pass down can ensure they're on the right track. And, with the Great Wealth Transfer getting underway and set to continue for the next couple of decades, it's never a bad time to prepare," says Canonica.
Source: ComparisonAdviser