The coming decade will see the largest global transfer of wealth in the planet’s history, as the Baby Boomers’ accumulated treasure of more than $US68 trillion goes to their heirs.
As the Boomers move into the sunset phase, the transfer of generational wealth has become a pressing issue for many families.
Financial advisors can help reduce the stress of the inheritance process. iStock
While some inheritors may feel overwhelmed by the sudden influx of wealth, experts suggest that with the right strategy and guidance from financial advisors, they can leverage their windfall to build on this wealth and secure their financial future.
A research paper released by the Productivity Commission in late 2021 said that about $3.5 trillion in assets will likely change hands in Australia alone by 2050.
However, it’s estimated that around 70 per cent of inheritances are wantonly squandered due to poor financial management and lack of planning.
To avoid this, financial advisors recommend that inheritors work with professionals to develop a financial plan.
This not only ensures the preservation of wealth but also helps in creating a legacy that can last for generations.
Leigh Fernando, managing director, private wealth at BlueRock, an Australian professional services firm urges people to work with a financial advisor when receiving a large inheritance.
Leigh Fernando, managing director, private wealth at BlueRock.
“It’s crucial for several reasons. Firstly, inheriting a substantial amount of wealth can be overwhelming. A financial advisor can provide valuable guidance and support during this transition, ensuring the heirs are making smart decisions in a difficult and emotionally charged situation” says Fernando.
“They can help heirs
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