Multi-generational Wealth Management

Depending on the ages and/or stage of life you are at, what is most important in your financial journey is different. Each decade of life presents a new set of financial obstacles and opportunities for financial growth. As will all decisions in life, balance and compromise must be equally weighed.

Across generations, while the adoption of digital tools is high, the importance of human advisors remains significant. Financial professionals are increasingly expected to offer more than just investment guidance – they must be coaches, educators, and partners in their clients’ financial planning process and lifecycles.

So what are the characteristics and general needs of the generations?

Chart detailing the proportions of different generational investors, highlighting significant events in each generation. Gen Z, Gen Y, and Gen X are depicted in green with respective percentages and significant events like the Digital Age, school shootings, and Berlin Wall. Baby Boomers and Silent Generation are in orange, showing their percentages and birth years.

A Starting Point for Multi-generational Wealth Questions and Concerns

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EARLY YEARS (20s-30s)

  • Student loan review

  • Retirement plan options

  • Budget analysis

  • Inheritance plan

  • FIRE (Financial Independence, Retire Early)/FINE (Financial Independence, New Endeavor) assessment

  • Establish "career-optional" income strategy

  • Education fund planning

  • Career benefit and compensation review

  • Equity compensation analysis

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MID YEARS (40s-50s)

  • Integrate financial planning strategies

  • Conduct insurance review

  • Tax and trust strategies

  • Review employee stock option

  • Optimize savings and retirement plan

  • Distribution plan for education funds

  • Real estate portfolio review

  • Plan for health care liabilities

  • Determine elder care needs

  • Implement family wealth briefing

  • Establish a rollover strategy

  • Fund retirement catch-up provisions

  • Implement FIRE/FINE strategy (if applicable)

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LATE YEARS (60s-70s+)

  • Funding a passion project

  • Budget analysis

  • Social Security and Medicare review

  • Implement the rollover strategy

  • Consolidate accounts for effective planning

  • Philanthropic endeavors

  • Leaving a lasting legacy

  • Wealth transfer plan

  • Review tax and trust strategies

  • Accomplish your life's purpose

Continually revisit:

  • Portfolio analysis (throughout the year, every year)

  • Debt management (at least once a year - review and manage debt as necessary)

  • Risk analysis (continuously monitored)

  • Emergency cash pool (revisited every year to make sure it's adequate)

  • Annual review of beneficiary assignments

  • Estate plan review (revisited every year to account for any changes taking place)

Finding Financial Balance During All Lifecycle Stages

20s: Time is your greatest asset

For many in their 20s, they may find managing their money for the first time in their lives.  The sooner an individual can start saving for retirement and longer-term goals; the more opportunity they have in order to grow their wealth.  Paying off student debt will happen over time, but it should not outweigh the priority of establishing a solid financial foundation. Topics would include starting an emergency fund or participating in an employer retirement plan.

30s: Keep long-term goals in sight

By the time that individuals reach their 30s, they may have experienced significant milestones such as marriage and/or children.  At work they may have achieved promotions or salary raises.  The focus of their planning is to build on their solid foundation and look to future long-term goals.  Topics could include saving for college, tax savings diversification, and retirement savings.

40s: Retirement strategies

As individuals enter their 40s, they would have paid off their student loans in an ideal world.  The need to prepare estate planning documents or review their content is paramount.  This may lead to discussions with parents about their wishes and elder care issues as parents age.  The focus on progressing through the planning process versus finding the perfect product or plan.

50s: Portfolio diversification is key

The need to manage risk as an individual in their 50s is key to mitigating risk.  While this needs to be addressed at all stages of life, managing risk in their portfolio becomes more defined.  The need to establish varied income streams also comes into focus in building out their retirement plans. 

60s: Legacy and estate opportunities abound

It is important for those in their 60s to recognize that no strategy on its own is enough to help answer all concerns in their later years.  By optimizing various financial strategies, the flexibility can help withstand the unpredictability of the markets.