Financial PlanningTax Planning

Investing an inheritance

Yesterday I handled a consumer question about investing an inheritance and published the Q&A after-the-fact. The amount of money being passed to the baby boomer generation is phenomenal and it is a huge impact on many people’s lifetime financial success.

One recent study by the Bureau of Labor and Statistics indicated almost 1 in 3  American households could expect to receive a wealth transfer through inheritance that on average, will eventually account for 40 percent of their net worth. Yet preparation for this major financial life event is lacking or missing entirely. We can surmise why this is the case; planning for an inheritance may seem greedy or in poor taste. Yet the lack of planning is clearly a disaster with 90% of all collective inheritance money disappearing within 3 generations.

What can be done to get mass affluent families to be more efficient in planning for wealth transfers in advance? I don’t know but I’ll keep reading what others write on the topic.

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