Connect with us
[bsa_pro_ad_space id=12]

Business

The Great Wealth Transfer – Billions To Change Hands By 2026

Published

4 years ago

9 minute read

Here comes the boom.

What is ‘The Great Wealth Transfer’? 

 

This term has been coined by several major wealth managers across North America; referring to the tremendous amount of wealth that will be transferred to younger generations over the next decade. Wealth amassed by baby boomers will eventually be passed down to their families or beneficiaries, typically with the aid of a trusted wealth manager or financial advisor. 

Similar in a way to climate change, when we visit some of the data that has been reported in both Canada and the US, this issue seems to be far more pressing than most people are aware. Depending on the publication, the exact amount of wealth that will be transferred is questionable. Cited in Forbes, a report done by the Coldwell Banker Global Luxury® program and WealthEngine claim that $68 Trillion will change hands in the US by 2030.

We spoke with Gwen Becker and Devin St. Louis, two VP’s, Portfolio Managers and Wealth Advisors for RBC Wealth Management, offering their expert insight into the industry and the vast amount of wealth that is changing hands in Canada. 

According to RBC Wealth Management, their numbers in terms of the wealth transfer report $150 billion is set to change hands by 2026. The industry as a whole is at the forefront of this generational shift, whereas a trusted advisor can onboard younger family members to ensure the highest level of support through the process. Gwen offers her perspective:

“Certainly just around the corner; something that we are definitely paying attention to. My practice has always been very relationship-driven. It has been my privilege to advise many of my clients for decades. I have been intentional to welcome and include multiple generations of the same family. I advise grandparents who are now in their 90s, to which the majority of their children are my clients and even beginning to onboard grandchildren.”

This is an example of what is referred to as multi-generational estate planning. Being in the midst of the ‘great transfer of wealth’, this type of planning is crucial for advisors to implement early so they can continue to support the same family in the future. According to the Canadian Financial Capability Survey conducted in 2019, 51% of Canadians over the age of 65 will refer to a financial advisor to seek literacy and support. Contrary to that, Canadians aged 18-34 show that 51% are more likely to use online resources to aid in their financial literacy. 

Devin offers his perspective on how the importance of family legacy plays a role when an advisor poses this question: What is your wealth for?

“If you sat down with a couple 10 years ago, they may say, when I pass away, whatever wealth is left can be distributed evenly amongst our children. That has changed quite a lot now because elder family members are now more concerned about how their wealth is passed on to the next generation. Onboarding grandchildren can ensure that a family legacy that receives their wealth, uses it to benefit their family and their community.”

An important question to consider. Clearly there is a shift in attitude towards having a family legacy live on through younger generations of a family. Evident that having the support of a financial advisor or wealth manager not only ensures the most efficient use of your money and assets but also ensures financial stability for your family in their future.

If we revisit the above study in how a younger demographic is more likely to utilize online resources, interesting how a more digitally inclined audience will be receptive to advisors. Boiling down to how millennials and younger age groups will perceive wealth management if those in that space fail to offer their services through online communication.

Devin agrees that RBC is uniquely positioned for this digital shift:

“interesting that everybody had to transform their processes online through this COVID-19 pandemic. Every company has been forced to step up their technology means, RBC has definitely risen to that occasion. RBC has adapted quickly, improving a great technology base that already existed. I don’t perceive it at this point to be a challenge. I believe we have the right focus. I think it’ll be a good transition for us.”

Gwen continues:

“I do agree that RBC is very well positioned. The younger generations below millennials that would eventually take over some of this wealth carries some challenges. How does that age demographic think, and what are their expectations of wealth management or financial advisors? It is difficult to understand what that generation will expect out of digital advisors. Estate planning matters, and it will always be tied to you knowing the family, it’s a relationship business”

Consider that RBC Wealth Management oversees $1.05 trillion globally under their administration, has over 4,800 professionals to serve their clients and was the recipient of the highest-ranking bank-owned investment brokerage by the 2020 Investment Executive Brokerage Report Card, safe to say their decades of professionalism, expertise and ‘get it done’ attitude speaks for itself.

So, what does this mean for younger members of families who may not understand the field of wealth management?

Starting the conversation early

Whether you are the elder family member who has their financial ‘quarterback’ preparing their estate to change hands or are younger family members who may be the beneficiary of wealth in the near future, starting the conversation amongst family members early is important for the process to be successful. Considering that some possessions have more than just monetary value, but an emotional tie to the family legacy can be a difficult asset to distribute evenly. Of course, it can be a tough conversation to have, it may involve discussing the passing away of a loved one or even setting a plan to cover future expenses. Gwen mentions:

“I encourage my clients to have open conversations with their children while they are alive so that their intentions are clear. Depending on the dynamics of the family, things such as an annual family meeting with a beneficiary can be effective once it’s put in place. If they are not comfortable leading that conversation, bring a trusted adviser to the table to be impartial and logical.”

There is no way to know what ramifications will come of this ‘great transfer of wealth’. It may be that we see the resurgence of a strong bull market in the near future, we may see new tech innovation that we cannot yet grasp or new business investments that continue to disrupt traditional processes. Only time will tell.

For more stories, visit Todayville Calgary

Related Topics:
More from this author
Alberta / 3 years ago

Free IT for Nonprofits for Two Years, Apply or Nominate

Alberta / 4 years ago

Tranquility and Transformation – ATMA Journey Centre Expands to Costa Rica

Alberta / 4 years ago

The App Built for Gig-Workers – Skilli 2.0

Business

Rand Paul Releases Report Detailing $1,000,000,000,000 In Gov’t Waste. Here Are The Worst Offenders

Published on December 24, 2024

By

 

From the Daily Caller News Foundation

By Ireland Owens

Kentucky Sen. Rand Paul released a report on Monday outlining more than $1 trillion in government waste from the past year.

The 2024 “Festivus” report highlighted various instances of wasteful government spending from the federal government, including a pickleball complex in Las Vegas and a cabaret show on ice. This year marks Paul’s 10th annual report.

“This year, I am highlighting a whopping $1,008,313,329,626.12,” Paul wrote in the report. “That’s over $1 trillion in government waste, including things like ice-skating drag queens, a $12 Million Las Vegas pickleball complex, $4,840,082 on Ukrainian influencers, and more! No matter how much money the government has wasted, politicians keep demanding even more.”

The Department of the Interior (DOI) spent $12 million on a Las Vegas Pickleball Complex, according to the report. The DOI also spent $720,479 on wetland conservation projects for ducks in Mexico.

“I have a lot of problems with federal spending, and now it’s time to hear all about them,” Paul wrote in the report.

The National Endowment for the Arts (NEA) awarded the Bearded Ladies Cabaret a $10,000 grant to support a cabaret show on ice skates focused on climate change, according to the report. The NEA also spent $365,000 to promote circuses in city parks, the report states.

The State Department spent $500,000 to expand the U.S. Embassy in Ethiopia’s #USInvestsInEthiopians social media campaign to a larger national public relations campaign, according to the report. The State Department also sent $253,653 to Bosnia to fight “misinformation,” spent $2.1 million for Paraguayan Border Security, and spent $3 million for ‘Girl-Centered Climate Action’ in Brazil, according to the report.

The Department of Health and Human Services spent $419,470 to determine if lonely rats seek cocaine more than happy rats, the report states.

The National Science Foundation spent $288,563 to ensure bird watching groups have safe spaces, also known as “Affinity Groups,” according to the report.

President-elect Donald Trump announced on Nov. 12 that he had picked Vivek Ramaswamy and Elon Musk to co-chair a new Department of Government Efficiency (DOGE), aimed at cutting down on wasteful government spending.

“As always, taking the path to fiscal responsibility is often a lonely journey, but I’ve been fighting government waste like DOGE before DOGE was cool, Paul wrote in the report. “And I will continue my fight against government waste this holiday season.”

Many Americans have faced steep costs amid high inflation throughout President Joe Biden’s term, with inflation hitting a peak of 9.1% in June 2022. While inflation rates have eased some since June 2022, prices still remain high, with the consumer price index (CPI), a measure of the price of everyday goods, experiencing a year-over-year increase of 2.7% in November, according to a Dec. 11 report from the Bureau of Labor Statistics.

Some experts have attributed massive government spending under the Biden-Harris administration to fueling inflation rates. The national debt was at $36.16 trillion as of Tuesday, according to U.S. Treasury Fiscal Data.

A spokesperson for Rand Paul did not immediately respond to a request for comment from the Daily Caller News Foundation.

Continue Reading

armed forces

Canadian military deployed ‘gender advisors’ to Ukraine, Haiti  at taxpayers’ expense

Published on December 24, 2024

By

From LifeSiteNews

By Anthony Murdoch

The Canadian Armed Forces has been pushing a radical LGBT agenda under Prime Minister Justin Trudeau, with the latest example being ‘Task Force Gender Advisors’ deployed in war-hit nations, such as Haiti and Ukraine.

Canada’s military has been actively pushing a woke pro-LGBT agenda on the world stage, with the latest example being its deployment of “task force gender advisors” internationally in war-hit nations, such as Haiti and Ukraine.

The “gender advisors” initiative is noted in the 2024 Departmental Report of the Canadian Armed Forces (CAF). This has resulted in it drawing a sharp rebuke from veterans who wonder why the military is spending money on pushing the LGBT agenda abroad.

The CAF report notes how in Poland, for instance, the “Task Force Gender Advisor was involved in all aspects of this training mission and supported the local Defence Attaché in connecting with local and Ukraine-based non-governmental organizations and interested parties.”

The report noted how the “gender advisor” as well as “gender focal points” were sent to military missions in Eastern Europe, including Ukraine, Poland, and Latvia throughout 2023.

In war-torn Haiti, “intersectional factors (were) being applied towards stabilization and humanitarian efforts,” via an “Operations HORIZON and PROJECTION” initiative.

This initiative is part of the third “National Action Plan on Women, Peace, and Security for 2023-2029.” This is a program that looks to advance pro-LGBT ideology, such as concepts of different “genders,” in all military operations.

Under Prime Minister Justin Trudeau, the CAF, as well as all government departments, have pushed an ever-increasing woke agenda, as well as a host of so-called diversity, equity, and inclusion (DEI) policies in place.

The military’s action plan notes how there are no less than three full-time “gender advisors” who are in the CAF at all levels.

The president of Veterans for Freedom, Andrew MacGillivray, blasted the woke DEI policies, saying the program has morphed into a “useless overbearing policy that has infiltrated every aspect of the Canadian Armed Forces.”

He noted that war-torn nations most likely don’t care “about gender nonsense being pushed by Canada when they are struggling to keep people alive.”

Since Trudeau became PM, the CAF has become increasingly woke and has been forcing LGBT ideology on many of its personnel. It has also seen recruitment plummet to all-time lows.

As reported by LifeSiteNews, earlier this year, Canada’s first “transgender” military chaplain was suspended for alleged sexual harassment, after he reportedly sought to grope a male soldier at the Royal Military College while drunk.

Canada’s military has spent millions of taxpayer dollars on pro-DEI polls, along with guest speakers, presentations, and workshops, as well as LGBT flags. The workshops covered topics including “the gendered nature of security,” while one talk discussed “integrating gender and diversity perspectives.”

In 2021, the defence department revealed that it has two separate committees and eight programs that worked to appoint homosexual advisors to “innovate” religious instruction and gender-neutral uniforms.

In June of 2023, the Canadian military was criticized for “raising the pride flag” in honor of the so-called “2SLGBTQI+ communities.”

Continue Reading

Trending

X