One item that we run into almost continuously is the preparation in one form or another, for the transfer of Wealth. Undoubtedly you may have seen some of the statistics of the various names of age groups… just by chance we just spoke about the population genders recently and here is the picture.
More importantly, no matter what area we may be in this echelon the fluid transfer of wealth is important.
What follows are some of the observations we have made over the many decades and some pertinent tips.
They are Watching – Do as I say not as I do? One of the easiest ways to create good financial planning, and therefore generation savings habits and transfer is to lead by example. While we understand, this is not always possible, it truly is the apple doesn’t fall too far away from the tree, in most cases.
Have affairs in order both from an upstream and downstream – Frequently wealth is accumulated at a certain generational level, it is worth looking upstream as well as downstream for order. Certainly, it is much easier to have affairs in order going downstream, but there are situations where the generation above the wealth can create less than fluid transfers, and while that conversation may be tough, it may be better to get it out in the open earlier, than deal with it later, of course, all situations are unique.
Sharing a picture of the total estate – Sometimes is good and sometimes is not! – Too early of sharing can create disincentives. Most people have someone in their life that was ….well not super motivated, because they knew they had a tremendous amount of wealth coming from a source, it is certainly situational … share carefully! Pro tip-over the years for the most part we have discovered that heirs seem to think there’s more there than reality for one reason or another.
Having a Good team of Advisors – This may sound self-serving, but in our multiple decades of experience, we find the best transitions occur when there is a smooth transition from one generation to the next through early contact in each generations careers. When the eventual inevitable event occurs, a good team that is comfortable for the next generation is uniquely positioned for a smooth transition to help conquer the inevitable problems that may occur most certainly with appropriate planning and documentation in order well in advance!
Lastly, we find many do not wish to continue Generational wealth…that is certainly fine too. Each generation tends to have better opportunities — and yes each older generation frequently thinks it may be really tough in certain areas, but this is usually not the case! Pro tip- We jokingly say “If we know what day we are checking out, we could have the check that day bounce!” Of course we have no idea and longevity is thankfully more and more common…. It is very likely there will be wealth left over and without appropriate organization, the only winners are Uncle Sam and the Legal system!
Have a Great “Generational Wealth Tips” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: AI created the header picture of hands. All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
