The inter-generational wealth transfer is in full swing; for advisors, this could mean more opportunity to better serve existing clients and retain new business, according to a new report from the Spectrem Group.
Many believe the ”great wealth transfer” is the passing of wealth from baby boomers to millennials, but in reality, boomers are still receiving the majority of the wealth, according to the report. Many in the WWIII generation are still alive and transferring assets to their children, who are in most cases baby boomers.
The study, “The Legacy: How Investors Are Impacted by Inheritance,” explores the effects of inheritances on inheritors. Sixty-three percent of inheritors said they use a financial advisor today. One third of investors with a $5 million to $25 million dollar net worth said their inheritance was a significant factor in their current wealth status, according to the report. For 12 percent, receiving an inheritance was the starting point in developing an advisor relationship. About 40 percent already had advisors and 37 percent did not use one even after getting an inheritance.