Page 23 - Waterfall Issue 3 2021

collective wealth management, some between elderly parents facing the use their wealth more collaboratively
of these risks can be mitigated, and challenges of old age and children to support each other during their
intergenerational wealth management needing financial support. lifetimes as well. This includes
can be maximised for sustainable having legitimate estate planning
outcomes across several generations. While immediate income is often and tax mitigation advice while also
the focus, families need to think finding ways to create wealth to
Considering multiple streams of alternative streams of income. alleviate the financial burdens for
of income It may be worthwhile reducing multiple generations in the family.
Statistics show that the average primary income requirements to
individual is living longer. Since take advantage of the power of Successful individuals work hard on
retirement age hasn’t changed compounding interest from growth communication with their family
fundamentally, the period in assets. Growth assets can increase and trusted financial advisers to
retirement has extended substantially. substantially in the long term, if one create an understanding of what
Retirees must now plan for up can hold off withdrawing funds in the they are truly trying to achieve
to 40 years in retirement. interim, as this will leave the resultant with their wealth as a collective.
income potential unsustainable.
Due to this, the average middle- As individuals, we have a relationship
income household in South Africa is Can intergenerational with money that is more emotional
experiencing a sandwich generation financial planning apply to than pragmatic. Working with an
phenomenon. This refers to many my family? experienced financial adviser will
generations living under one roof, Traditionally, wealth passes from one help create the best outcome for you
supported by a core set of income generation to the next upon death. and your family while facilitating
earners. In such circumstances, the However, intergenerational financial more sustainable and higher net
income earners are sandwiched planning looks at how families can intergenerational wealth transfers.

Waterfall Issue 3 2021 21