We’re told our time horizon shrinks as we age. This makes sense, because the closer we get to retirement, the less time we have left to accumulate wealth. And the nearer we come to having to eventually draw down on that wealth.

But retirement often throws up a whole new set of priorities. Instead of our own time horizon, we’re now thinking about our children’s time horizon; and, as they may have their own families, even their children’s time horizon. Suddenly, the priority is not just to make your wealth last, but to preserve it for the next generation. And that’s where the real power of advice lies: its ability to transform families by building intergenerational wealth.

Australia is nearing the crest of a retirement wave, and as the baby boomer generation looks to pass on wealth, those in receipt of it will likely need guidance. That said, talking to your children about money is a delicate matter - wealth transfers and inheritance planning are not regular topics of conversation at the family level. Understandably, many families find subjects such as death and the future division of wealth as unpleasant and potentially sensitive, especially when multiple heirs are involved.

Most would also agree that openness and transparency (across all generations) helps facilitate discussions about the intended treatment of assets, as well as the ‘who’, ‘how’ and ‘when’ of transferring wealth. But as we may have a strong, long-standing relationship with you (as your financial adviser), that same level of trust and comfort doesn’t necessarily translate to your children or grandchildren.

An introduction is a good starting point. We’ve found that a brief, casual, face-to-face meeting with our client’s children can often help to demystify the ‘adviser’ and break down potential barriers. It can also be comforting for the child to have a trusted, impartial, point of contact should they need to reach out in the event of an emergency.

Consider connecting your child with your trusted financial advisor today.

Rick Maggi.