The Great Wealth Transfer

As the baby boomer generation starts to pass on, a lot of money is expected to change hands. With estimates ranging from $30-68 trillion, experts are calling it the Great Wealth Transfer. 

Baby boomers have been the wealthiest generation in American history thanks to a number of factors, including a consistently healthy market, low cost of living, rising real estate value, and more. As the old saying goes “you can’t take it with you”, which means their wealth and possessions have to go somewhere. 

The question is, where is it all going to? 

The primary beneficiaries will be both Gen X-ers and millennials. Even those who come from relatively modest homes could receive a respectable inheritance. Regardless of financial standing, it’s important for all generations involved to understand their role in the Great Wealth Transfer. 

For Those Passing Wealth On 

If you’re a baby boomer who hasn’t planned out the rest of their financial journey, it’s time to act immediately. First and foremost, make sure you have an updated will in place. Second, make sure any money or assets you’re leaving behind are properly placed and protected. 

A lot of inheritance can be eaten up through various taxes and fees, not to mention end-of-life medical expenses. 

If you want to leave money behind for a specific purpose and/or with special restrictions, consider setting up a trust. You can learn more about why you may (or may not) want to do that here

The best way to make sure your money will be properly handled once you’re gone is to meet with a financial advisor. 

For Those Receiving Wealth 

Inheritance should never be something your financial plans depend on (click here to learn why). Instead, it should be seen as a supplement to your finances, something that can super-charge your goals for the future.  

If/when you receive an inheritance, a great first step would be to pay off any debts you have. From there, the actions you take may depend on the inheritance received. For example, if you’ve inherited land, you have the choice to manage it, redevelop it, sell it, and more. 

For cash inheritance, there are many things you can do beyond simply putting it into a bank account. After all, millennials are known to not trust banks. Banks tend to be interested in what’s best for them and what investments they can profit off the most. 

That’s why it’s best to meet with a neutral financial advisor to plan your fiscal future. At KB&P Partners, we can help assess your current situation, set goals, and create strategies that will allow you to achieve those goals in a timely matter. 

We know how to best factor in inheritance as well. We have no third-party affiliations that influence our guidance. Our only goal is to help you figure out what’s best for the future of you and your family. Whether you’ll be benefiting from the Great Wealth Transfer or not, we can help you make the most out of your money. 

Contact KB&P Partners for financial advising and wealth management in Springfield, Ohio

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