13% of $60 Trillion Is Up for Grabs

Mike McGlothlin, CHFC®, CLU®, CFP®, LUTCF®

The Wall Street Journal reported last week that only 13% of beneficiaries will stay with the same advisor their parents used. Close to $60 trillion of wealth will be transferred from one generation to the next over the next quarter-century. That means that $52.2 trillion is at risk inside of our portfolios. That’s the bad news.

But that also means that $52.2 trillion in assets is poised to move — and if you’re prepared, it could move to you. And you could hold onto some next-generation clients. But to take advantage of the opportunity waiting for you, you must start having legacy conversations with your clients and your potential clients as well.

Recently, we’ve seen a lot of government spending, which translates to a larger national debt. In fact, according to the Peter G. Peterson Foundation, the national debt will double over the next 30 years. And when that happens, taxes — and especially wealth transfer taxes —  will need to increase as the government tries to get a handle on our nations’ finances.

For better or worse, we are all creating a legacy. But by having a conversation with your clients, you can prove your value in shaping that legacy into something beneficial. And, when you have those conversations, it’s critical to get the beneficiaries involved. After all, those beneficiaries have the potential to be your next clients. Or they might just become part of that shifting 13%.

So, planning today and getting beneficiaries involved is going to be critical. Reach out to your retirement income team at (800) 589-3000 and make an appointment to talk about all the tools and resources we can deliver to help create a legacy for your existing — and prospective — clients.

Transformational Tactic

Help create a legacy for your clients by including the next generation in planning conversations. It’s essential to attracting and retaining clients.