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The Great Wealth Transfer – Billions To Change Hands By 2026

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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

Business

DEA’s Most Wanted in U.S. Custody: Mexico Extradites Dozens Amid Trump Trade Standoff

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Sam Cooper

In a stunning move just days before the Trump administration is set to impose sweeping tariffs over Mexico’s role in America’s fentanyl crisis, Mexican President Claudia Sheinbaum engineered the largest single-day extradition of cartel leaders in history, delivering 29 top-level traffickers—including one of the most notorious figures in modern drug war history—into U.S. custody.

Among those flown north on Mexican military aircraft Thursday was Rafael Caro Quintero, the infamous cartel boss accused of ordering the brutal 1985 torture and murder of DEA agent Enrique ‘Kiki’ Camarena, a crime dramatized in the Netflix series Narcos: Mexico. Other high-profile extraditees include Antonio Oseguera Cervantes, alleged brother of Jalisco New Generation Cartel (CJNG) leader “El Mencho,” as well as key leaders from the Zetas, the Gulf Cartel, and La Nueva Familia Michoacana.

In Washington, U.S. Attorney General Pamela Bondi hailed the mass extradition as a turning point in the war on cartel violence. “As President Trump has made clear, cartels are terrorist groups, and this Department of Justice is devoted to destroying cartels and transnational gangs,” Bondi said in a press release. “We will prosecute these criminals to the fullest extent of the law in honor of the brave law enforcement agents who have dedicated their careers—and in some cases, given their lives—to protect innocent people from the scourge of violent cartels.”

DEA Acting Administrator Derek S. Maltz declared, “Today, 29 fugitive cartel members have arrived in the United States from Mexico, including one name that stands above the rest for the men and women of the DEA—Rafael Caro Quintero. This moment is extremely personal for the men and women of DEA who believe Caro Quintero is responsible for the brutal torture and murder of DEA Special Agent Enrique ‘Kiki’ Camarena.”

The defendants are collectively accused of importing massive amounts of cocaine, methamphetamine, fentanyl, and heroin into the United States, along with a litany of violent crimes including murder, money laundering, and illegal weapons trafficking. The Justice Department noted that many of these cartel leaders had long-standing U.S. extradition requests that were not honored during prior administrations but were accelerated following direct White House pressure.

As the Mexican delegation, including Foreign Secretary Juan Ramón de la Fuente and security chief Omar García Harfuch, met with Secretary of State Marco Rubio in Washington, the mass extradition signaled Sheinbaum’s readiness to make dramatic concessions to avert Trump’s threatened tariffs. The unprecedented handover also coincided with the State Department formally designating six cartels as foreign terrorist organizations.

Award-winning Mexican journalist Ioan Grillo, reporting on Sheinbaum’s transformative move, cited comments from Mike Vigil, former head of the DEA’s international operations, saying, “This is the highest number of extraditions [in one day] in the history of Mexico, without question. This is historic. … These guys unleashed a river of blood… Everybody is elated with the extraditions.”

However, the decision has ignited controversy within Mexico’s legal community, Grillo reported, noting longstanding criminal defense stances were “bulldozed.”

Juan Manuel Delgado, lawyer for Miguel Ángel Treviño, one of the most feared Zetas leaders, called the move an assault on Mexican sovereignty. “My client’s extradition tramples on due process and demonstrates that Mexico is bending entirely to U.S. will,” Delgado reportedly told CrashOut magazine.

Notably, while Mexico typically secures agreements that extradited criminals will not face the death penalty, the U.S. statement made no such assurances, raising the possibility that figures like Caro Quintero could face capital punishment.

While Mexico is in the crosshairs of Trump’s fentanyl crackdown, attention is also turning to Canada’s underreported role in the continent’s cartel problem. Organized crime experts say that over the past 15 years, cartel networks have deeply infiltrated Ontario, British Columbia, and Quebec, using Canada as both a fentanyl production hub and a gateway to launder cartel proceeds. It’s a little-known fact that the cartels started to gain presence in Canadian narco-trafficking cells almost 50 years ago, one expert told The Bureau.

However, it remains unclear whether Canada’s newly appointed Fentanyl Commissioner, Kevin Brosseau, has made any significant progress in responding to Trump’s demands for tougher action. An expert who could not be named due to the sensitivities of investigations and political discussions said cartels have thrived under Canada’s lax enforcement and weak financial crime controls. The question now is whether Brosseau will have any real impact on the concerns or simply be part of “performative” meetings run out of Ottawa, they said.

With Trump’s administration signaling that Canada will be hit next week with economic penalties if fentanyl production and money laundering continue unchecked, the Trudeau government faces growing pressure to show concrete results in combating cartel expansion within its borders.

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‘Dark Truth’ Of USAID: House Lawmakers Spotlight Biden’s Foreign Aid Abuses In Fiery Oversight Hearing

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From the Daily Caller News Foundation

By Adam Pack

House Republicans zeroed in on the Biden administration’s use of foreign aid to bankroll left-wing causes that undermine American interests across the world in a heated oversight hearing Wednesday.

House Republicans, led by Delivering on Government Efficiency (DOGE) Subcommittee chairwoman Marjorie Taylor Greene, sought testimony from experts to outline how the United States Agency for International Development (USAID) advanced a left-wing policy agenda during the Biden administration that in turn alienated U.S. allies and made the world less safe for Americans. Democratic lawmakers struggled to defend the worst abuses of USAID funding, such as pushing far-left ideologies on countries with conservative cultures and indirectly financing terrorist groups.

House Oversight Republicans’ hearing on foreign aid comes after President Donald Trump’s Department of Government Efficiency has effectively dismantled USAID and left its future in limbo. Secretary of State Marco Rubio announced Wednesday the Trump administration cut roughly $60 billion in USAID and State Department grants and multi-year awards that it determined did not align with American interests.

Greene also said the DOGE Subcommittee will consider recommending investigations and criminal referrals to those it believes have abused foreign aid. The subcommittee is expected to release a post-hearing review on USAID’s foreign aid abuses next week.

“USAID has been transformed into an America-last foreign aid slush fund to prop up extremist groups, implement censorship campaigns and interfere  in foreign elections to force regime change around the world,” Greene said in her opening remarks. “That is the dark truth about USAID.”

“Taxpayer funds have literally been used to undermine U.S. interests and counter American foreign policy goals under the guise of foreign aid,” Greene continued. “This is unacceptable, and the American people agree.”

More than 60% of Americans believe that U.S. foreign aid is being “wasted on corruption or administration fees,” according to a survey published by the Financial Times on Feb. 17.

Democrats appeared unable to confront the worst USAID abuses that occurred under Biden, and at times, sought to deflect attention to unrelated topics.

After Greene outlined how USAID funding had been funneled to terrorist groups, Democratic New Mexico Rep. Melanie Stansbury, the top Democratic lawmaker on the subcommittee, began her opening remarks with the statement, “Welcome to the Elon Musk chainsaw massacre.”

Stansbury then proceeded to rail against Musk for weighing into Germany’s recent parliamentary elections, Vice President J.D. Vance scolding European elites for abandoning core civil liberties and the president’s recent comments on the Russia-Ukraine War.

Democratic lawmakers’ witness Noam Unger, director of the Sustainable Development and Resilience Initiative at the Center for Strategic and International Studies, struggled to answer a question posed by Texas Republican Rep. Brandon Gill if spending more than $3 million “for being LGBTQ” in the Caribbean aligned with American values.

Stansbury and other Democratic lawmakers on the panel appeared to have learned few lessons about USAID’s abuses. Stansbury notably defended former USAID director Samantha Power’s push to turn the department into a de-facto “climate agency” and attempted to get the experts testifying to agree that USAID should continue to push LGBTQ rights on the rest of the world.

“If we want to do counter China, there’s nothing more that has alienated billions of people than pushing an ideology that they resent,” Max Primorac, who served as USAID’s acting chief operating officer, senior agency vetting official and regulatory reform officer in the first Trump administration, told Stansbury in response. “None of this is counter China. This is counter America.”

“A resounding ‘yes’ that foreign aid can be a powerful tool of diplomacy to promote freedom, prosperity and peace in accordance with our national interest and our values, but not as an instrument of progressive imperialism,” Primorac continued. “Aid officials must ensure that every single foreign aid program can pass the Middle America smell test on waste, fraud and abuse.”

Primorac previously told the Daily Caller that USAID’s left-wing agenda under former President Joe Biden weakened the United States’ influence abroad.

Experts also tore into the Biden administration’s use of foreign aid for damaging the United States’ standing in the world. Biden notably left office with an increasingly unstable world stage, with ongoing wars in Europe and the Middle East.

“It [USAID] has been doing harm while spending more on aid,” Primorac told lawmakers.

There is more world poverty and hunger today, more political instability, and developing countries are more beholden to our adversaries.”

“The fiduciary duty of our aid officials over the past four years has done tremendous damage to foreign aid’s credibility and America’s standing in the world,” Primorac continued.

Despite Trump moving to cut the vast majority of USAID contracts and shut down the agency, most lawmakers on the panel — Republican and Democrat —  still believe the U.S. government should be doling out some foreign aid to counter China’s influence in developing countries and provide relief in humanitarian crises. But foreign aid practices must align with American interests as outlined in the president’s executive order on foreign aid, according to Republican lawmakers.

“That’s just hyperbolic nonsense that we do not recognize that there’s a role to play for the United States in the federal aid space,” Republican Texas Rep. Pat Fallon said Wednesday. “But what we want to expose is $164 million going to radical organizations — $122 million of it to organizations that have aligned, or at least tied to terrorism.”

A DCNF analysis found that more than $1.3 billion taxpayer dollars doled out by the Biden administration ended up in terrorist groups’ coffers.

The hearing was disrupted on two occasions by left-wing protestors in the crowd. An elderly woman was removed after making an “obscene gesture” to an unnamed lawmaker while South Carolina Republican Rep. William Timmons spoke. Another person attending the hearing was promptly removed by police after shouting at lawmakers to stop DOGE.

Greene told the crowd that private individuals, including those in the crowd, were free to fund far-left causes around the world, but no longer would the government be bankrolling left-wing activism on the taxpayer’s dime.

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