Financial Advisors Should Engage in Wealth Transfer Conversations

Why Financial Advisors Should Prompt Families to Engage in Crucial Conversations Around Wealth Transfer

The next two decades will be a defining period in the wealth management industry, with an estimated $84.4 trillion in assets being passed down by 2045¹ . With this unprecedented transfer of wealth, we will see older generations, like Baby Boomers and the Silent Generation, navigating discussions around plans for inheritance and the transfer of funds. As an industry, we have a responsibility to support our clients through this transition, connect with the next generation of clients and serve families in a way that is unique to their needs.

Younger generations, like Gen Z, Millennials and Gen X, are expected to inherit immense wealth and will need support in managing their assets so they are set up for success in their lifetimes and beyond. Financial advisors should see this as an opportunity to build relationships with this next generation of clients by supporting them through this massive transfer of wealth. At Edward Jones, we are setting up our financial advisors with the tools and support to better serve their clients and to help them grow their financial knowledge – so they have the opportunity to achieve what is most important to them.

Bringing Conversations Around Wealth Transfer to the (Dinner) Table

If your clients aren’t already having these conversations with their families, it’s time to prompt them to do so. The good news is our recent research found that a majority of financial advisors surveyed across the industry (89%) report that their clients have a wealth transfer plan in place and nearly two-thirds of financial advisors (65%) say clients are bringing their children or parents to meetings to discuss their wealth transfer plans. It’s promising to see clients engaging their families in these conversations, as earlier involvement creates a sense of trust and intentionality before the transfer takes place and helps set up younger generations for future success.

It’s also key to maintain an ongoing exchange with your clients and their families throughout this process to help ensure responsive action to changes in family dynamics, finances and more. Over three quarters (77%) of financial advisors say they discuss clients’ wealth transfer plans at least quarterly to stay on top of their long-term priorities. In times of transition, our role as a trusted guide to our clients is even more important. We understand that it’s nearly impossible to separate emotions from money, which further underscores why we enable our financial advisors to deliver comprehensive solutions and advice by providing personalized experiences, guidance and tools designed to help more people achieve financially what is most important to them.

Digging Deeper on Values and Goals

We know these conversations are also always changing and financial advisors acknowledge that their conversations with clients around inheritance have shifted in the past five years. For instance, 36% of financial advisors report their client conversations focus more on establishing and growing wealth to use during their lifetime rather than passing on or giving away their wealth. This is why building a deeply personal relationship with your client can help make sure you’re building a comprehensive financial strategy that considers their life, values, goals, aspirations and risk.

Clients and investors today are not just expecting “best in class,” they are looking for what’s “best in life.” That’s why at Edward Jones, our financial advisors are focused on a holistic approach – serving clients with trusted guidance that future generations should benefit from for years to come.

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