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A podcast designed to help retirees and those nearing retirement navigate finances and life planning with expert insights from financial advisor Trevor Lawson. Tune in for practical strategies and inspiring ideas to ensure your retirement years are purposeful, fulfilling, and truly your best chapter yet.
*Securities and investment advisory services offered through Osaic Wealth, Inc. member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth. Branch phone: 919-546-0400.
Trevor Lawson: [00:00:00] Welcome to The Retirement With and On Purpose Podcast. I'm your host, Trevor Lawson, and this show is all about helping you not just reach retirement. But truly thrive in it. You've put in the work. Now let's make sure you can enjoy every moment to the fullest.
Today's episode is inspired by a article in Financial Advisor Magazine called Having the Talk. Families Need to Discuss Estate Planning. Fidelity says so, uh, fidelity. Came out with a family and finance study recently just showing statistics for broad statistics about, um, different families and how confident or not so confident they are in their estate plan and how they've communicated it to their children.
And the, the results were very. [00:01:00] Eye-opening and are, uh, I'm gonna share a lot of those today with you, but certainly create an opportunity for, for financial advisors and for our clients to start, for us to start helping facilitate that conversation with parents and their children, or even those that don't have children, you know, that those individuals and their heirs just to make.
Sure that the eventual heirs of our estate are prepared for that transition and hopefully will honor, um, a lot of your, your intentions as the, the giver of those, those monies. So I'm gonna quote several times here, with 124 million in wealth projected to be transferred through 2048, primarily from baby boomers to their Gen X and millennial heirs.
Many families are failing to have discussions about parents' net worth estate planning or managing inherited wealth fidelity report in this [00:02:00] study. Furthermore, many families recognize the value in having such critical financial conversations and many adult children think they are ready, but parents just haven't acted yet with some parents admitting talking about inheritance makes them uncomfortable.
According to the Boston Base investment management giant. So there's very good reason as to why, uh, these conversations aren't taking place as often as they probably should. And a lot of it just has to do with, you know, just being uncomfortable about. Talking about, about death and, and frankly, fear of just, or potentially putting fear in your, you know, your, your child's mind about life without you.
So this article, uh, talks about, you know, that that dreaded conversation of the birds and the bees with parents and their children. Well, this is sort of the, uh. The, you know, the, the parents and grandparents version of the birds and bees conversation, that's, that's difficult but necessary. So, continuing on here, while 97% of families recognize that having [00:03:00] conversations about estate planning is important, nearly one half have yet to engage in critical conversations about it according to the Fidelity study.
In addition, 68% of parents in the study haven't told their children what they'll inherit or whether they're inherit anything at all. Fidelity says more than 30% of parents are uncomfortable talking about inheritance. While 52% of them have haven't disclosed their net worth to their children. Again, you're These statistics are hopefully driving home the point that just a lot of people have not yet had these pivotal conversations with their heirs about.
You know what their expectations are, what their role is in in the overall estate plan. So I'm gonna continue to quote here. A whopping 95% of adult children are ready to manage inherited wealth, but a quarter of parents disagree. In addition, more than 40% of parents aren't confident their children can manage debt or be able to stick to a budget.
The study revealed that 70% of parents have created a will. Estate plan, but [00:04:00] 68%. So almost all of the ones that created estate Plan, 68% have yet to share inheritance details with their children according to the study. So I'll, I'll, I'll provide the actual study itself in the show notes so you guys can kind of, um, sit with some of these statistics.
But I think my biggest takeaway from this is there's, there's a huge gap right now in what's been. Kind of communicated or, or reflected in our, our client's estate plan and what. The heirs or the eventual beneficiaries of that estate plan actually know. And so I think one thing that myself and many of my companions in the industry can do is help really facilitate that conversation.
'cause it's already uncomfortable enough talking to anyone about death, but particularly your, your loved ones. So, um, one thought would be to kind of, um, use your advisor or advisory [00:05:00] team as a resource here and have them. Maybe schedule or, or tee up a, a family meeting where the purpose and intent behind that meeting is to talk about some of the planning that you've done, you being one, have done over time, and just have the advisor help effectively communicate what's, what's reflected in your retirement and estate plan and help make sure ultimately that if something does happen unexpectedly or when something does happen that your.
Desires can be carried out seamlessly and that your, your heirs can ultimately be prepared to be a better steward of the assets that will be bestowed upon them. That's it for today. Again, I'll share this article along with the actual study in the show notes and I will look forward as always, to field any questions this may create on your end as.
Take care, and I'll look forward to being with you again soon.
Thanks for tuning [00:06:00] in to The Retirement With and on Purpose podcast. I hope you're walking away with new ideas and a fresh perspective on how to make the most of your retirement journey. And remember, retirement isn't the end. It's your time to live with purpose. Until next time, I'm Trevor Lawson. Here's to a fulfilling and thriving retirement.