Page 22 - Waterfall Issue 3 2021
P. 22
Waterfall News
pLAN FOR
THE NExT
gENERATION
By Nirdev Desai, PSG Wealth’s Head of Sales
T he modern family presents constructive conversations about management sooner rather than later,
new challenges. Second
including the intention of leaving an
wealth planning and management.
or third marriages with
to align values within a family and
different sets of children Bridging the value transfer inheritance. Not only can it take years
are now commonplace. Longer gap transfer knowledge, but wealth taxes
life expectancies also mean a Each generation has a different can also have a substantial impact on
longer wait before heirs can set of values. The values that an estate if wealth transfer options
claim their inheritance. fuelled the Baby Boomers and are not considered in advance.
their wealth are often not shared
With varying approaches and with their beneficiaries. This has Supporting the nucleus
attitudes to money, there is little resulted in a value transfer gap, Defined benefit retirement plans and
guarantee of the next generation which challenges the preservation the associated income certainty in
preserving accumulated wealth. For of wealth within the family. retirement have given way to self-
this reason, families must have open, funded retirement provision. The related
Discussing money matters within risks of self-funding one’s retirement
families is often awkward at best are amplified by attempting to leave a
Looking at and considered uncouth at worst. portion of the saved capital as proceeds
In addition, people frequently for beneficiaries. This dangerous
intergenerational view wealth as a feature of their cocktail of increased self-funding
own success and believe that their and trying to leave a legacy while
financial planning in descendants should create their own maintaining a comfortable lifestyle
wealth. However, families need to start cannot be sustained effectively for
today’s world. having meaningful and educational the average middle-to-higher income
conversations about wealth household. By including the family in
20 Waterfall Issue 3 2021
