As the baby boomers prepare to pass their hard-earned money and accumulated wealth to their children and grandchildren, the oncoming wave of receivers stands to avail the benefits of the bloodline. Whereas the baby boomers received education in the values of self-control, individual morals, and social dogmas as a part of receiving their generational wealth, the millennials, in being exposed to the world-at-large more than any of their immediate ancestors, are rooted in their idea of freedom, success, individuality, and living in the now. This attitude has its pros and cons. For real estate investor Dolmar Cross, the next wave will need to break some barriers to make the most of what they receive.
Apart from the individuals who will receive this generational wealth, Dolmar expects a rise in wealth management firms. He says, “The great wealth transfer is about to hit the still-forming shores of tomorrow. Wealth management firms that are willing to become well-versed in the language of technology stand much to gain from this incoming wave. Advisors can expect and prepare to encounter individuals who seek help to organize and manage their massive inheritance. I am sure the wealth management industry stands to benefit from it.”
History is testimony that inheritance that’s not organized and attended to by those who receive it is often lost in the first few years of inheriting. Dolmar believes this is the perfect time for wealth management companies to plan and execute ideas that can help their new line of customers avoid such consequences. He says, “Companies need to learn how to help their clients understand the value of their inheritance, organize what they receive, and access its growth and changes. Companies that teach their clients to respect their unearned wealth and educate them to use it to multiply it further instead of squandering it away will have much to gain in terms of a bigger clientele.”
Dolmar also believes that it’s time to do away with the taboo that’s associated with this transfer. He says, “Families often prefer to avoid discussions around the subject because it’s related to the passing of a loved family member. We haven’t allowed ourselves to have mature and sophisticated family discussions around it. That needs to change. Awkwardness and fear will only lead to confusion.”
When it comes to making the most of generational wealth, Dolmar believes in being practical. He believes that helping the young know their ability to be responsible can help them respect the efforts of their ancestors.