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Helping Clients With ‘ The Great Wealth Transfer ’
Advisors have to be proactive to ensure clients seamlessly transition their assets .
By Joshua Belfiore
THE GREAT WEALTH TRANSFER IS ON THE horizon , which will mark a shift of up to $ 90 trillion from baby boomers to the next generations . During this time , financial advisors must be prepared to help one generation leave a legacy while helping another navigate a windfall .
While not every client situation is going to involve large financial gifts , advisors still need to be ready when it happens to make sure the asset transition is seamless . And there are three important steps advisors should take to create a plan , connect with the next generation and continue to guide families in their financial journey .
Step No . 1 : Help Aging Clients Determine Their Legacy Objectives
First , advisors will have to start discussions with aging clients about their unique retirement aspirations and legacy goals . These conversations should be comprehensive and personalized , covering all aspects of a client ’ s financial circumstances . The clients will have to answer difficult but necessary questions : For instance , how do they want their wealth to influence their chosen causes and affect their loved ones after they ’ re gone ? And how do these aims work with their other goals , like maintaining a retirement lifestyle ?
One way to talk about this is with “ interactive scenario modeling .” This is when you let clients visualize different financial scenarios based on their objectives — for instance , whether they want to fund their grandchildren ’ s education , support char- itable organizations or ensure the intentional passing of their wealth . Such modeling offers clarity and gives clients confidence in their plans .
By walking clients through potential courses of action and trade-offs , you put their financial decisions in the context of their broader objectives . Not only is this a powerful way to help them zero in on their desired legacy plan , but it gives them a true sense of ownership since they helped create it .
Advisors who plan collaboratively create a smoother path for wealth transfer .
Step No . 2 : Conduct Joint Meetings With Clients And Heirs
A critical step for advisors when dealing with wealth transfer is conducting meetings among wealthy clients and inviting their family member heirs . These meetings are essential for several
52 | FINANCIAL ADVISOR MAGAZINE | NOVEMBER 2024 WWW . FA-MAG . COM