The largest wealth transfer in the history of mankind will eventually take place between baby boomers and millennials! #BoldBiz sat down with the managing director of LCK Wealth to discuss how the next generation should prepare.
Posted by BoldTV on Thursday, December 14, 2017
There’s an upcoming generational wealth transfer to millennials from their Baby Boomer parents. What does this mean for you, and how should you be prepared?
How to start
According to Laurie Kamhi, Managing Director and Partner at LCK Wealth Management, the first step is to talk to your parents. Ask them how they reached their current financial situation and what they expect to pass down to you. Especially in the case of an unforeseen emergency, it’s wise to discuss money and an inheritance, though it may not be pleasant or go down easily. Ask them to share what they feel comfortable revealing, including passwords.
Kamhi’s other advice is more general and concerns your job: go over your paycheck. Figure out where you want to your money to go. You can even talk with your employer about automated contributions to savings accounts in the case that you don’t want all your money in one place, possibly preferring to save some of it. You should understand also the process of taking out a loan and what it means for you. Kamhi advises not to rush, as you should understand concepts like compound interest and go over all your options for long-term money borrowing before making a decision.
Financial literacy is important, as there’s a lot to know about money management. Keeping in mind the upcoming wealth transfer to millennials and how it will affect your long-term financial goals and projections is important. Fortunately, there are many steps you can take right now to prepare for your future.
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