In our last three blogs, we have tried to highlight the profound tax savings that a thoughtful, proactive distribution plan can produce for both you and your heirs.
There is a massive transfer of wealth underway in the United States and it will continue for the better part of the next three decades. According to research from Cerulli:
- Gen Xers are set to inherit $14 trillion – with a T – over the next decade
- Millennials are set to inherit $46 trillion – with a T – over the next 25 years
- Nearly $100 trillion of wealth will be transferred from the Baby Boomer generation
In a recent meeting with newer clients, likely in a similar financial situation to many readers, we asked how important transferring wealth to their five daughters was. Their answer: “it doesn’t keep us up at night, but it appears unavoidable”.
True, that.
Speaking from experience, the good habits that people use to build their wealth are hard to “unlearn” in retirement. Living within one’s means while retired naturally leads to varying degrees of wealth left at the end. It is usually unavoidable.
Family conversations about money can often be avoided by us Midwesterners.
We believe those potentially uncomfortable conversations are a fabulous opportunity to reaffirm and communicate your values to the next generation.
To help begin those conversations, RBC Wealth Management recently published a conversation guide entitled “A New Era of Wealth Transfer”.
A digital version of this piece can be found on our team website: us.rbcwealthmanagement.com/provenance
For a printed version, please reach out to financial advisor Josh Rebholz at josh.rebholz@rbc.com or 651-430-5502.
Josh Rebholz, CEPA®, CFP®, Associate Vice President - Financial Advisor
Patrick Tinucci, Senior Vice President - Financial Advisor
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