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Adding value with an intergenerational wealth strategy

The intergenerational wealth strategy has two parts

Younger generations are facing financial pressures and difficulties. Generation X and Millennials are not accumulating wealth in the same way as their parents and grandparents (Baby Boomers) enjoyed. That’s why more and more millennials want to set up their own businesses.

This makes intergenerational wealth planning a key area where you can add value to your clients, and their families.

1. Retention strategy:

  • Assets remaining under management even though the legal ownership of those assets change.
  • The ownership could change either during a client’s lifetime (via gifting) or on death (via inheritance).

2. Growth strategy:

  • Assets coming under your management for the first time and new money being invested.
  • This represents a client acquisition opportunity. By creating new relationships with the family members of your clients, their existing assets could come under your management.
  • New money could also be invested following the death of your clients, where their illiquid wealth becomes liquid if those who inherit it, sell it. Examples could be property or expensive items like cars.
“Baby Boomers, Generation X and Millennials lead very different lives, have different expectations and different resources. They will have different financial needs as a result. Financial services markets will need to adapt and innovate to meet them.”
Christopher Woolard Executive Director for Strategy & Competition The FCA, 2019

Don’t let your client’s beneficiaries walk off and make a mistake

Intergenerational wealth transfer is an opportunity to acquire new clients who entrust you to manage additional wealth on their behalf.

Find out more

Do you have overseas clients?

Find out how different legal systems around the world will impose their own rules on how estate can be distributed on death.

How to plan wealth transfers in uncertain times

Developing your business strategy

Explore our tips on how to get an intergenerational wealth strategy in place to help retain clients and grow your business.

Explore our tips