Connecting with the next generation of investors is important for financial advisors as a significant wealth transfer is underway from boomers to their heirs.
Chris Hennessey offers some topics for planning conversations to engage the family of existing clients.
1. College savings. Start with a conversation about 529 college savings plans and their tax benefits. Parents or grandparents can establish these accounts to benefit children or grandchildren. Planning for future college costs can facilitate an immediate connection with the next generation.
2. Retirement. Conduct a beneficiary review with clients and explain the tax deferral benefits of a Stretch IRA.
3. Taxes. There may be opportunities within families to shift income to those in a lower tax bracket. 4. Estate planning. A review of documents will help you understand who the family members are and more about their school or work status. This can guide overall estate planning strategies.
With the popularity of social media, it’s easier to get in touch and stay connected with adult children and other family members. Clients may not be online, but their children are and many use LinkedIn. Once connections are made, social media provides a way to set up meetings and continue planning discussions with the extended family.
For informational purposes only. Not an investment recommendation.
This information is not meant as tax or legal advice. Please consult with the appropriate tax or legal professional regarding your particular circumstances before making any investment decisions. Putnam does not provide tax or legal advice.