State Street Global Advisors has today released a research whitepaper, ‘Managing the Transition of Wealth Across Generations’, that looks at strategies for financial advisors looking to plan for the transfer of their clients’ assets across generations.
There are a number of strategies that financial advisors can employ to transform their client’s attitudes about wealth transfer planning, clarify and satisfy their objectives and prepare them for the transfer of wealth.
Some of the key themes from the research whitepaper include:
– Strategies to manage the different behavioural approaches to wealth management across generations and appropriate engagement tactics
– The importance of open dialogue among family members about wealth transfer strategies and when to involve spouses, grandparents and / or children in important financial conversations and decisions
– How investors can enable their clients to take deliberate, proactive steps early on in the wealth transfer process and why investors should not wait until there is a death or health issue to involve a financial planner
– Why investors are put off by wealth transfer planning and techniques to shift the wealth transfer mindset
– At what point should children be involved in family wealth matters and the importance of financial education at every stage of life
Some of the key data points from the research whitepaper include:
– 80% of investors plan to transfer wealth but only 45% have a plan in place
– Whilst 88% of advisors are making an effort to engage the next generation, only 50% have a clear strategy
– Only 38% of investors retain the same advisers when their spouse dies. And that number drops to 29% when both parents have passed and children inherit their assets.
