Are you ready for the great wealth transfer?

Around $60 trillion will be passed down by baby boomers to their beneficiaries between now and 2061, according to projections. For those of us in the financial planning industry, that’s an indication there’s a lot of work to be done. For those of you saving and investing, that should be a wake-up call to talk with your advisor and get a financial plan on the books. Between 1946 and 1964, about 72.5 million Americans were born. The generation was dubbed the “baby boomers” due to the spike in births during that time period. Members of that generation are now enjoying retirement or are on the cusp of it. As they age, they will begin to pass their assets to their children and heirs, many of whom are members of the millennial generation. This unprecedented event has been dubbed “the Great Wealth Transfer,” and will involve around $60 trillion. Older millennials are now in their mid- to late-30s, and many of them could be inheriting money or property as a result of the Great Wealth Transfer. This impacts both the boomers who will be passing down assets, as well as the millennials and beneficiaries that will be receiving them. Here are

December 31, 2019 No Comments

Living wills and trusts: Here’s what you need to know

Estate planning isn’t the most exciting thing to do, but it’s one of the most important–both for yourself and your family. If you have minor children and some assets, you probably need an estate plan regardless of your tax situation. Why you need a will or living trust If you die without a will (intestate), the laws of the state in which you live will determine the fate of your minor children and your assets. That’s a concerning thought for most people. To avoid this, you need a written will to make your wishes known. The main purposes of a will are to name a guardian for your minor children (if any), name an executor for your estate, and specify which beneficiaries (including charities) should get which of your assets. The guardian’s job is to take care of your kids until they reach adulthood (age 18 or 21 in most states). The executor’s job is to pay your estate’s bills, pay any taxes due, and deliver what’s left to your intended heirs and charitable beneficiaries. The living trust In addition to a will, you may also want to set up a living trust to avoid probate. Probate is a court-supervised legal

September 10, 2018 No Comments