A recent survey conducted by Citizens reveals a concerning trend: the majority of Americans are ill-prepared to manage the significant assets expected to be passed down from Baby Boomers, the wealthiest generation in American history.
According to the survey, a striking 72 percent of Americans feel they lack the financial confidence to manage a large influx of money without professional help.
"A staggering amount of personal wealth is projected to be passed on to heirs in the coming years, making it the largest transfer of assets in US history,” Brendan Coughlin, vice chair and head of consumer banking at Citizens, said in a statement.
The study, which sampled over 1,500 Americans and included an oversample of 500 small and mid-market business owners, found that 61 percent of Americans would consult a financial advisor if they received a large inheritance, including 67 percent of Gen X, 61 percent of Millennials, and 59 percent of Gen Z.
As an estimated $84 trillion changes hands, younger investors seem to be at greater risk of fumbling their inheritance. More than half of Gen Y (54 percent) and Gen Z adults (51 percent) in the survey saying they’ve received poor advice after coming into a large windfall, compared to just 32 percent of Americans overall.
An overwhelming 94 percent of Americans know the importance of having an experienced advisor in their corner to achieve their financial goals. Among the eighty percent who’d consult one, the top objectives were investing more (29 percent), saving for retirement (29 percent), and building up their savings (28 percent).
Still, nearly a third (29 percent) of US adults feel they need at least a million-dollar inheritance to justify professional guidance on managing it. Nearly one-third (31 percent) of Americans expect to get an inheritance within five years, led by Millennials (55 percent) and Gen Z (41 percent).
“This sharply underscores an opportunity for seasoned wealth managers to foster meaningful, trusted relationships with customers and take market share from the large incumbent wealth firms,” Coughlin said.
Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.
Whichever path you go down, act now while you're still in control.
Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.
“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.
Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.
Streamline your outreach with Aidentified's AI-driven solutions
This season’s market volatility: Positioning for rate relief, income growth and the AI rebound
