Is it time to talk about money with the family?

“We tend to shy away from discussing money amongst our families and friends. However, as we approach the largest intergenerational wealth transfer in history with more than half of Australians expecting to inherit, why have only just over a third discussed their wishes with their children?”

The irony of the focus on life longevity and the retiree fear of money running out is that most people leave more assets to their estate than they held when they entered retirement. If it’s possible to look down from beyond the grave, it must be frustrating for anyone who worked hard and saved, then lived a frugal retirement, only to see the following generations fritter the money away.

New research from Perpetual based on 3,000 Australian families shows that while 58% of people hope their children will invest for their future, an estimated 70% of families will lose their wealth by the second generation, and 90% by the third. It’s a frightening prospect when $3.5 trillion will be transferred from Boomers in the next 20 years. Financial education for following generations is essential 

The coming holiday season might be a good time to talk about money with the family!

Should you need a confidential ‘third party’ involvement or advice, contact a professional financial advisor, Graham Slip on 0414 583 558.

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