Are You Retaining Assets during the wealth transfer phase?

What are you doing to retain assets when your client passes away? Are you helping them honor or identify their intentions for their legacy? Multigenerational planning is extremely integral to the long-term success of our business.


Lets take a look at some steps you can take to ensure your practice is Financially FIT for the long haul.

Did you know that only 38% of investors retain the same advisor when their spouse dies? This number drops significantly when both parents have passed and the children inherit the assets.

What are you doing to protect your practice and focus on intergenerational planning?

With the largest intergenerational shift of wealth currently underway it’s very important to connect with the heirs that stand to inherit the assets you currently manage. As baby boomers enter retirement they are transitioning from an accumulation model to distribution and ultimately moving the money across generations. Over the next three decades we will likely see north of $40 trillion pass through to Generation X and the Millennials.

Do you have the tools and resources available to you in order to communicate effectively with the changing generations? What’s worked for the boomers will not necessarily work for Generation X or Millennials. Are you willing to implement new systems and technology?

For many advisors, this shift of wealth is going to be a prime opportunity to acquire new clients. For others, this could mean a huge loss of assets. As referenced above, you could stand to lose 60% to 75% of your current assets during this wealth transfer phase. Can your practice thrive given this potential risk?

So what can we do to mitigate against this risk? We see three potential opportunities that will keep your practice Financially FIT:

1.     Family Planning- Switching your focus from being an advisor for a client to a family advisor

2.     Inclusion- Coaching clients on having conversations about wealth with the entire family

3.     Technology- Each generation will communicate differently and have different values, lets branch out with technology in order to communicate effectively and properly


Family Planning:

When it comes to family planning this is really done in two phases. One, we need to start the wealth transfer conversation early. Many clients often think about this stage when they are nearing the conclusion of their life. Therefor they tend to avoid the conversation due to the negative connotation. The general thought is to continuously push off the discussion. This delay could be very costly.

Discussing wealth transfer needs to switch from purely wealth transfer to a discussion about their long-term goals for their family. How would they like to define their legacy? Coach them through this process and help them outline their goals and intentions. Have them create a document, which will outline their “goals, dreams and visions” for their legacy. There are often common concerns of: providing financial security, covering educational costs, health care or medical costs or philanthropic intentions.

The second part of family planning is switching your thought process from being an advisor to your client to a family advisor. The perception may be that there is not a lot of wealth accumulated in the younger generations but keep in mind, that’s where the wealth is moving. If you can start having the conversation about how to accumulate assets with the heirs now and coach them to be financially responsible this will poise you to manage those assets when the transfers take place.  If you can connect with the next generation now they will become your ideal client.

Millennials are often perceived as a loafer, or freeloader for living at home with their parents after college. However, they ultimately do so because saving money is a priority. They’re also fairly conservative with their investments. This changes many advisors perspective on the generation and how they will be able to work with them over the years.



One of the top concerns of investors is that their heirs are not prepared to inherit the wealth.

They worry:

·      The family may not clearly know their intentions for the wealth or uphold their wishes

·      A third party that they do not approve of may influence their financial decisions

·      They may not understand the value of money

·      They wont stay engaged with their financial advisor

·      They will not be philanthropic enough

It can be disastrous if a family is not responsibly ready to inherit the wealth. So the question is becomes, when do we involve the rest of the family in our planning? Only 4% of families have regular meetings to discuss money matters, while 45 % of families say wealth is never openly discussed. Encourage them to think creatively about how to have the conversation and reassure them there is no right way to take on this task. It’s going to vary per family.

“When participating in a meeting with the extended family, always honor the differences in culture, attitudes and values of the different generations. Always be true to your own knowledge and skills in giving advice so you don’t compromise their trust, but respect their differences. Don’t pander or say things just to ingratiate yourself with them. When you see something that doesn’t make sense, bring that up even if it’s an uncomfortable conversation.”
— Ted Cronin, Chief Executive Officer, Manchester Capital Management

Think about this:

• 40% of investors expect to be involved in the family's wealth transfer plan once they are financially independent.

• 65% are looking to their financial advisor or family office to play an instrumental role in educating the next generation financially.

Discussions around estate planning can become very emotional. But for families that want to ensure their legacy is protected, proper communication is key.



Communication has changed drastically with the younger generations. Both Generation X and Millennials are highly collaborative and interactive and they expect real-time delivery of information. The reality is, we live in a world of tablets and smart phones, apps and social media. If you have not adapted to the current technology demands, you may be going the way of the dinosaurs.

Now may be the time to hire a junior advisor to assist in bridging that generational gap. While you manage your top clients your junior advisor could build stronger relationships with the remainder, including outreach to the children of your affluent clients, attorneys and other professionals. To strengthen the communication to the younger generations they can introduce new technology and implement social selling techniques. The importance of regular communication going out through social media and in email marketing is paramount.


Think about this:

·      On YouTube alone there are 300hrs of video uploaded every minute

·      75% of all internet traffic will be video in 2017

·      According to Facebook a video has 135% greater organic growth versus a post with a photo

·      Videos you create will not only hit your network but will be shared with 35% of people you are         not yet connected with

·      92% of people who consume video, will share those videos with other

·      81% of people using video as part of their marketing get more replies

·      68% convert more leads

·      56% get more referrals

*According to Bomb Bomb


If you have not yet started the transition to poise your practice in the social selling space you are already behind your competition.

Here at Kestler we would like to be your partner throughout this journey and generational shift. We want to assist you in bridging that gap and ensuring you practice is Financially FIT.  Our marketing team specializes in integrating video into your practice as well as social selling across all media chains.

If you’re interested in crossing that bridge and becoming a intergenerational planner give me a call today to discuss our Beneficiary Review program. This program is designed to uncover assets you do not currently have access to with your clients, get you in front of new prospects and assist you in building relationships with their heirs. All of this, with an introduction and integration of video into your marketing plan.

If you are already working in this capacity, congratulations, you are ahead of your competition. Our marketing campaigns are built out with you in mind. Contact me today to learn what we have that would marry well with your current marketing plan.


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