The importance of intergenerational wealth management: how to do it and why should you?
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We believe in the value of working together as a family in all other areas of life, so why should your finances be any different?
“Traditionally money is passed on from one generation to the next, but the demands of modern life are changing the way families share their wealth,” says Craig Dewhurst, senior investment manager at Charles Stanley in Leigh-on-Sea.
“Nowadays, there are more ways families can use their combined wealth to make everyday life easier, reduce financial strain and reach those important milestones,” adds Phill Moonie, senior investment manager, from Charles Stanley.
Below, Phill and Craig tell us more about the benefits of planning for your financial future at an early stage.
Q: What is intergenerational wealth management?
A: It’s a collaborative approach you can take to your family’s finances, where you can put plans in place and use products to help you share your wealth and provide financial security for your loved ones.
Q: Why is taking an intergenerational approach to finances more relevant today than it was 10 years ago?
A: Longer life expectancy, growing debts and rising living costs mean many families now face more financial challenges than they did previously. Many children rely on money from parents and grandparents to help them take their first step onto the property ladder or fund university study. Often, people need to support elderly parents to help them stay on top of their finances, and fund care home fees. Rising house values means more people have Inheritance Tax issues.
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Frequently, this means people need to reassess how they are using their total wealth, including their property, to plan for the later stages of life so they can financially support other generations of their family.
Q: What are the benefits of intergenerational wealth management?
A: It can help you prepare for the unexpected. Thinking of ways you can put aside money now allows you more time to plan and budget and can help you create the life you want for you and your nearest and dearest.
It also encourages families to talk openly about money, which can reduce tension, improve relationships and help introduce your children to a saving culture, effectively planning for their future.
Q: How can you help families with their finances?
A: We can discuss your goals for the future, assess your current circumstances and then plan how to get there. This could involve opening a Junior ISA or SIPP to help save for your child’s future.
We’ll talk you through your available investment options to create a bespoke investment portfolio that suits you. We often work in tandem with local professionals such as accountants and solicitors, ensuring a joined-up approach.
We’ve helped many local families gain financial confidence and security. One of our clients is now a 75-year-old grandfather. We’ve worked with him for many years, and now manage portfolios for his children, and are discussing ways we can save for their youngest child’s future - who’s just turned one and a half!
We’re dedicated to helping our clients and their families find the best financial solution, developing our trust, building the relationship and providing ongoing support to create a flexible investment plan.
Q: How can people start investing and thinking more about their finances?
A: Honestly, the best way to start is by having a conversation about money, either with someone you love or you can call a member of our team. Sometimes people think investing is reserved for the financially savvy and those working on Wall Street, but it’s not at all. By just reaching out and chatting to someone, you can start on the path to a more financially confident future.
To find out more, visit charles-stanley.co.uk/leigh-on-sea-office or call 01702 668 886.
The value of investments can fall as well as rise. Investors may get back less than invested. Past performance is not a reliable guide to future returns. The information in this article is based on our understanding of UK Legislation, Taxation and HMRC guidance, all of which are subject to change. Charles Stanley & Co. Limited is authorised and regulated by the Financial Conduct Authority.