Talking about the untimely passing of a loved one is never easy. However, having these important conversations early and taking the time to responsibly plan for how wealth is transferred to heirs is a critical topic.
As baby boomers are soon expected to pass on trillions of dollars in wealth to their families over the next few decades, this very topic has become a key area of focus for many.
It’s about more than just mapping out a plan you feel good about, but also keeping it up to date over the years and having your heirs in on the conversation early so they can make future plans as well.
At Toomey Investment Management we can help you to understand the different methods available to effectively leverage, pass and distribute wealth to your heirs. An estate plan is unique to every client and because of that, the process may benefit from a firm with an independent approach. Our clients can expect a transparent experience as we analyze the market for investment vehicles that correlate with your goals.
If you’re on the cusp of entering your retirement years or have started to think about more effective management of your assets, we have some key things you’ll want to consider when it comes to wealth transfer.
The event of this money shifting has already been referenced by many as the “Great Wealth Transfer.”
First, a little background. As we mentioned, the generation born between 1944 and 1964 – also known as Baby Boomers, spent the decades of their core working years amassing a lot during economic strong years and are now moving into the retirement years. Market projections indicate they’ll be transferring around $60 trillion in wealth to millennials and Gen X by 2061. The effects of these inheritances are far-reaching and without a solid plan, those funds – even large sums – could easily be squandered.
Unexpected wealth can happen quickly and beneficiaries may not be able to keep a solid perspective when it happens. By making them aware of the future wealth and giving them time to speak with an advisor there is time to make a solid foundation and plans for preserving and growing those inheritances.
So what can you do now? Start having these conversations about money and future inheritances with your Gen X and Millennial kids and grandkids if you plan to pass money down in the future so that they can start planning early.
A trusted financial advisor can assist with understanding tax obligations, planning for expenses, and even allocating inheritances to meet their own financial goals.