October 20, 2022

Many people set financial goals, but reach them in different ways. Some work and save money early on in their career for things like a down payment on a house. Others rely more on support from parents or from starting a business to help achieve their personal financial achievements.

One other way to work towards bigger financial goals is to use a sudden influx of a lot of money and direct it towards one goal or across numerous things at the same time. For example, receiving an inheritance can open a lot of doors for someone who is smart about the strategy for managing that new money.

Since the start of the pandemic, millennials and Gen Z are the most likely group to receive or give a wealth transfer. While millennials and Gen Z are those most likely to get a financial windfall, they’re also most likely to give one.

Age has been a significant differentiator in determining what encourages people to use wealth transfers since the beginning of the pandemic. 28% of millennials receive or gave a wealth transfer to address immediate life events or needs, such as major purchases, significant life events, economy related factors, and personal financial factors. For those between the ages of 35 and 54, or over 55, wealth transfers are most commonly prompted by the death of a friend or family member.

If you’re thinking about how best to support your loved ones and are thinking about making a wealth transfer now or as part of your estate planning process, it’s a good idea to discuss your individual goals with an experienced and knowledgeable financial professional.