In the financial industry, we encounter clients in a variety of professions, educational backgrounds and unique family dynamics. Each has a different reason as to why they have made the decision to seek the help and guidance of a financial professional. Whether it be an influx in wealth, a transition in a business, the need to focus on their profession/family and don’t have the time, etc. There is a common theme that we see across all clients, and that is in most cases their number one priority is ensuring that their loved ones are looked after in the event that something were to happen to them.
That is why here at Waldron, we make an extensive effort to work with the next generation of the family in not just preparing them for wealth, but also educating them on the basic finance skills needed in their early adulthood.
Our holistic team approach at Waldron gives us the ability to provide the resources to the next-gen so that they have their own dedicated team member to help them as they encounter the financial hurdles of early adulthood. This ranges from a wide variety of areas that we see on a daily basis such as building credit, making investment decisions, health care & retirement plan options with an employer, good debt vs. bad debt, etc., all the way to the more serious topics such as creating wills and powers of attorney, estate planning, and pre-nuptial agreements. These are often areas that are not typically taught to young adults and can be detrimental to their overall financial structure without the proper guidance.
When thinking about estate planning, we tend to immediately approach the subject as WHAT’S IN IT FOR ME when thinking of the next-gen group. As if The next-gen group is only interested in what will they inherit, how much will be in their trust accounts, who is getting the cars, jewelry, etc. This often worries parents because most people want to see their children become productive members of society and do not want the family’s wealth to disincentive them. As a result, parents often choose to not discuss it. We have seen this go very poorly in many situations when the Next-Gen is uneducated on wealth & inherits a large sum of assets. Or in other instances, when they assume they are going to inherit a substantial amount of wealth and have made life decisions based on that assumption, and ultimately do not inherit what they anticipated.
These are all reasons why we have the approach that it is best to educate the next gen and approach this conversation from a different angle. Do we have any discussions designed around the “what happens in an emergency situation?” Where are all the important documents? Who makes all financial or medical decisions? Have your parents appointed a power of attorney if they become incapacitated (Alzheimer’s, coma, car accident, COVID-19 etc.)? Who is paying their bills if this happens? Where are their passwords to access accounts? Burial or cremation? In a sense, do clients have their legacy prepared to be properly managed once they are no longer around?
This is quite the emotional “pain-point” discussion for clients to have with their spouses and their children, which can create stress and panic. Having the discussions and being prepared BEFORE is far less difficult than being confronted with these issues DURING an emotional time. That is why we work with families from all different backgrounds to work towards a smooth transition of their legacy to the next generation.
Waldron Private Wealth (“Company”) is an SEC registered investment adviser with its principal place of business in the Commonwealth of Pennsylvania. Company may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. For information about the Firm’s registration status and business operations, please consult Waldron’s Form ADV disclosure documents, the most recent versions of which are available on the SEC’s Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov.
This material is for informational purposes only and is not intended to be an offer, recommendation or solicitation to purchase or sell any security or product or to employ a specific investment strategy. Due to various factors, including changing market conditions, aforementioned information may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Company, or from any other investment professional. Investing involves risk, including the potential loss of money invested. Past performance does not guarantee future results. Asset allocation and diversification do not guarantee a profit or protect against loss. Company is neither an attorney nor an accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice.
