Survey Says Boomers Hope to Inherit More than Money
by Nancy Mills
We recently heard from Boston area financial advisor Larry Diamond about a Harris Poll conducted for Allianz Life that debunks the myth that Baby Boomers are counting on a legacy of money...and only money...from their parents.
"The most important asset for both generations — by a large margin — is ‘values and life lessons,’ named by more than three quarters of boomers and their parents," says Diamond. "The second most important asset, named by two thirds of Boomers and over half of their parents is ‘instructions and last wishes'."
Diamond also says that for Boomers, ‘personal family possessions with emotional value’ was rated third at 34% and financial assets was a distant last, rated by only 10% as a priority.
Remember the "Generation Gap" - the communication and cultural distance that many of us had with our parents? Well, in a way it's back. According to Allianz Life, "This time the gap is around the transfer of $25 trillion in wealth to be handed down by the elder generation to their heirs." Elders, for example, are 22% more likely than Boomers to think that they owe their children an inheritance.
When Boomers and their parents were asked if there had been adequate discussion about intergenerational asset transfers, barely a third in each group said "Yes." The least discussed items: 1- values and life lessons and 2- instructions and last wishes. Perhaps it's easier to focus on the dollars, not the feelings.
Diamond says financial planners should encourage Boomers to talk to their parents about legacy planning. And they should be thinking about the legacy they want to leave to their children and to society.
"A key question that I always ask of all my pre-retiree and retiree clients is ‘how would you like to be remembered when you die?’ This question is one that all of the professionals who work in this field — especially attorneys, financial planners,and accountants — should ask and emphasize to achieve the objective of intergenerational transfers which best satisfy the needs and desires of all family members," says Diamond.
We recently heard from Boston area financial advisor Larry Diamond about a Harris Poll conducted for Allianz Life that debunks the myth that Baby Boomers are counting on a legacy of money...and only money...from their parents.
"The most important asset for both generations — by a large margin — is ‘values and life lessons,’ named by more than three quarters of boomers and their parents," says Diamond. "The second most important asset, named by two thirds of Boomers and over half of their parents is ‘instructions and last wishes'."
Diamond also says that for Boomers, ‘personal family possessions with emotional value’ was rated third at 34% and financial assets was a distant last, rated by only 10% as a priority.
Remember the "Generation Gap" - the communication and cultural distance that many of us had with our parents? Well, in a way it's back. According to Allianz Life, "This time the gap is around the transfer of $25 trillion in wealth to be handed down by the elder generation to their heirs." Elders, for example, are 22% more likely than Boomers to think that they owe their children an inheritance.
When Boomers and their parents were asked if there had been adequate discussion about intergenerational asset transfers, barely a third in each group said "Yes." The least discussed items: 1- values and life lessons and 2- instructions and last wishes. Perhaps it's easier to focus on the dollars, not the feelings.
Diamond says financial planners should encourage Boomers to talk to their parents about legacy planning. And they should be thinking about the legacy they want to leave to their children and to society.
"A key question that I always ask of all my pre-retiree and retiree clients is ‘how would you like to be remembered when you die?’ This question is one that all of the professionals who work in this field — especially attorneys, financial planners,and accountants — should ask and emphasize to achieve the objective of intergenerational transfers which best satisfy the needs and desires of all family members," says Diamond.
posted at 10:16 AM
0 Comments:
Post a Comment
Back to blog main page