Share
Check the background of investment professionals associated with this site on FINRA's BrokerCheck.
Over the next 20 years, a wealth transfer of more than $30 trillion will take place as the baby boomer generation passes the remainder of their wealth to millennials and subsequent generations. But the “great wealth transfer” isn't just about billionaires. Assets will be passed down across all income levels. That's why it's important to develop a wealth transfer plan for your assets. Here are some ideas for navigating the process.
Getting Started
When starting to plan for transferring wealth, pre-retirees should prepare for their retirement first, health care costs second, and their remaining transferring assets last.
As you might expect, creating a wealth transfer plan can be complex, and involving other people can be helpful. Although it may not be your preference, including the next generation in all aspects of your planning can be beneficial, not only for your immediate heirs, but for future generations. Additionally, seeking guidance from qualified tax and legal professionals is essential.
Preparing the Next Generation
So how can you help the next generation get ready to take over your estate, and to eventually pass on their remaining assets? Seek out qualified financial professionals who can offer your heirs guidance and education about managing money. Some families also choose to “train” the next generation by teaching them how to invest in giving away assets through philanthropic efforts.
Preserving Wealth
The complexities of wealth preservation aren't taught in school or other institutions. They're best demonstrated by modeled behavior, professional guidance, and the current generation's expressed intention to pass their wealth forward. Since many people inheriting money aren't prepared to manage it, it's helpful to provide tools, including financial education, opportunities for frequent investment decision-making, and an understanding of why preserving the inherited wealth matters. These are all important components to the survival of an estate transfer.
Consider the generation set to inherit from the baby boomers. If they're well-prepared to preserve what they inherit, it could provide financial benefits to others for the next 30-40 years. And that's worth planning for.
Get Help With Your Plan
Many people focus on building wealth, but it's just as important to make a plan for passing that wealth on to future generations. If you'd like guidance on “the great wealth transfer” and creating a plan with your beneficiaries, meet with a financial professional.
Talk to a Financial Advisor
Financial advisors at BECU Investment Services can help provide guidance on wealth transfers to help you and your family prepare for the future. Our team will take the time to get to know you, understand your goals and wishes to help build a plan and implement a financial and retirement strategy that's appropriate for you. Set up a complimentary consultation or call 206-439-5720 today.
For more resources or to stay up to date on market updates follow BECU Investment Services on social media: LinkedIn; Facebook
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. BECU and BECU Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using BECU Investment Services, and may also be employees of BECU. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, BECU or BECU Investment Services. Securities and insurance offered through LPL or its affiliates are:
Your Credit Union (“Financial Institution”) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for brokerage or advisory services.
Please read the LPL Financial Relationship Disclosure for more detailed information.
The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.
The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.
LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.
LPL Tracking #1-05131078