The Miller Financial Group

Creating Multigenerational Wealth: Strategies For Each Generation

We are excited to announce that estate planning is now a key part of our comprehensive services. Our team recognizes the importance of both growing and protecting your legacy, so we've added a user-friendly estate planning solution in-house, collaborating with vetted trust and estate attorneys to help ensure your estate plan is comprehensive and legally sound. And we cover 100% of U.S. jurisdictions.

In today's ever-changing regulatory environment, it’s crucial to stay ahead of evolving laws and regulations that may impact you. Whether you're looking to create or update a will, trust, powers of attorneys, or guardianship nomination, our team is here to guide you, working to ensure your financial and estate plans adapt to current and future changes, all in one place. 

How often do you discuss family wealth and inheritance? Avoiding these conversations can lead to problems, especially with the “Great Wealth Transfer” (GWT) underway... 

The Great Wealth Transfer refers to the transition of ~$84 trillion in assets from the Silent Generation and Baby Boomers to younger generations. It’s expected to occur over the next two decades and be the largest wealth transfer in U.S. history.1

With such a monumental shift, families could face new challenges and unexpected consequences that may impact wealth retention. If family members aren’t aligned or well informed, it could lead to lost opportunities and diminished generational wealth.

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12 Wealth-Building Strategies for Each Generation of a Family

Plant Tree

Foundation Builders

Gen Z (born 1997 - 2012)

Starting strong financially can set the stage for future success. Gen Z may benefit from the following strategies:

  1. Build Credit Wisely: Open a credit card or two, utilize under 30% of available credit, and pay off in-full monthly to build a strong credit score. Avoid any unnecessary debt and payments, borrowing only for “investments” in your future, like education or starting a business.
  2. Start Investing Early: Even small contributions to a Roth IRA or a retirement savings account can grow substantially over time. Shoot for the maximum each year, and train yourself to save for your future-self first. 
  3. Age of Majority: Healthcare designations, living wills, and powers of attorney are essential estate planning tools for kids turning 18. Teenagers should complete their documents before heading off to college, traveling the world, or starting their post-high school jobs. This way, parents can legally care for them if something goes wrong.
  4. Learn and Share: Gather a basic understanding of account types (i.e. Roth, Pre-tax, and Non-Qualified) and investing methodology through books, articles, and podcasts. Talk finance with friends and family to normalize money conversations and create more opportunities for building financial literacy. 

Pro Tip: Track spending to identify where money is going, and start budgeting to maximize savings contributions.

Wealth Accumulators

Millennials (born 1981 - 1996)

Millennials may be in their prime earning years, an ideal time to build wealth and focus on financial stability.

With an eye toward growth and protection, this generation can use these strategies to advance their financial goals:

  1. Build a Safety Net: Build up to 6 months of expenses in a high-yield savings account as an "emergency fund". Start working with a financial advisor to create your financial plan, helping you make better decisions with your money. Research insurance, and obtain sufficient coverage for health, disability, and life insurance. 
  2. Invest Consistently: Work to maximize retirement contributions and participate in employer matching programs. Research maximum contribution amounts to your investment accounts and shoot to invest according to the time-horizon of your goal. 
  3. Planning to Get Ahead: As individuals experience life changes, such as getting married, having children, and buying their first home, this is a pivotal time to revisit your estate plan. Name guardianship for children and pets and update the beneficiaries on your retirement accounts and life insurance policies to align with your family structure.

Pro Tip: Automate savings and investments to stay on track effortlessly! 

Garden Harvest
Garden Dinner

Legacy Planners

Gen X (born 1965 - 1980)

Gen X can start legacy planning while working to grow wealth as they support children and aging parents.

Looking to minimize risk and create a more favorable financial future, Gen X can:

  1. Prioritize Retirement Savings: Work to lower expenses and maximize contributions to retirement accounts. Maintain your growth-mindset and avoid tapping into retirement savings unless absolutely necessary.
  2. Estate Planning: Work with your trusted advisor to maintain your estate plan, ensuring your documentation aligns with your wishes. Considerations may include transferring assets into trusts to avoid probate delays, reassessing beneficiary designations, and strategically gifting to family members to reduce future estate tax exposure.
  3. Continue Multigenerational Conversations: Discuss financial and inheritance plans with your parents and children to ensure clarity and reduce misunderstandings. Instill financial literacy in the next generation and assist them in starting education and retirement investing.

Pro Tip: Consider long-term care insurance for yourself and your parents to reduce future caregiving challenges.

Legacy Protectors

Baby Boomers (born 1946 - 1964)

This generation may prioritize wealth preservation and transfer while sharing financial wisdom with the next generations.

Whether retired or approaching retirement, Boomers can put these strategies in play to both safeguard family wealth and set up a clear plan for wealth distribution:

  1. Protect Retirement Assets: Review retirement accounts and required minimum distributions (RMDs) to maximize tax efficiency. Diversify investments to protect against market volatility.
  2. Wealth Transfer: People often revise their advanced healthcare directives after experiencing the passing of friends or family members. You may have changed your mind about life-saving measures, life support, or the person who should make critical medical decisions. Work with your advisor to identify potential estate tax liability and how to transfer assets most efficiently after death.
  3. Share Financial Knowledge: Host multi-generational family meetings to discuss financial values and plans, fostering smarter money habits and education across generations.

Pro Tip: Invite your children and grandchildren to meet with your advisor to get them started early and review your financial and estate plans for clarity down the road. 

Teaching Gardening

Each generation can contribute to multigenerational wealth in meaningful ways, working together to create a shared vision of their legacy.

TMFG FINANCIAL LESSON:

The Real Value of Generational Wealth & Legacy Planning

Did any strategies for your generation surprise you? What about those for your children's or parents’ generations?

Building and preserving wealth takes ongoing effort, and its a shared responsibility across generations. Each generation can contribute meaningfully to the family’s financial vision, creating a stronger, more aligned legacy.

Our team is excited to help you craft or update your legacy goals and estate planning documentation alongside your financial blueprint. Our new collaboration of financial and estate planning not only reduces the contact points for you and your family, but fosters multi-generational family values, financial literacy, and smart money habits. 

 

Warmest regards, 

Your TMFG Team

Rob, Lindsay, Allie, Samara, and Gabe

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