ComparisonAdviser Study Emphasizes Importance of Planning for the Great Wealth Transfer

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, WA / ACCESSWIRE / May 29, 2024 / 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.

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. 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, diminishing wealth due to healthcare costs, living expenses or excessive spending, and subjecting one's estate to taxes because funds were not gifted or placed in a trust beforehand.

Sean Canonica, Senior Finance Writer at ComparisonAdviser, states, "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." He continues by highlighting the importance for beneficiaries to seek assistance from financial advisors to retain and grow their inheritance.

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. Preparing for the Great Wealth Transfer is crucial as it is set to continue for the next couple of decades.