Eddie Zavala, AIF®, RICP® · Ascend Integrated Wealth

Creating Multigenerational Wealth: Strategies For Each Generation

How often do you discuss family wealth and inheritance?

If you're like most, it's probably not a topic of conversation.1

This could be due to its sensitive nature, or because you and your loved ones haven't considered how to build wealth together – or how to transfer it across generations.2

However, avoiding these conversations can lead to problems, especially with the "Great Wealth Transfer" (GWT) now 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.3

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

But it doesn't have to be this way.

Each generation can play an active role in breaking the cycle of loss and preserving wealth.

And that can all start with knowing some key strategies for nurturing intergenerational 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, use it responsibly, and pay it off monthly to build a strong credit score. Avoid unnecessary debt, ideally borrowing only for "investments" in your future, like your 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. Learn about compound interest to see how early efforts may pay off.
  3. Learn and Share: Boost knowledge on personal finance through books, podcasts, and courses. Talk finance with peers 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 asset protection, this generation can use these strategies to advance their financial goals:

  1. Invest Consistently: Maximize retirement contributions and participate in employer matching programs.
  2. Build a Safety Net: Maintain 3 to 6 months of living expenses in an emergency fund. Research insurance, and get sufficient coverage for health, disability, and life insurance.
  3. Cultivate Financial Transparency: Talk openly with your family about debt, income, investments, and other financial matters. Greater transparency can promote healthier money mindsets and better financial habits.

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 brighter financial futures, Gen X can:

  1. Debt Management: Pay down high-interest debt while maintaining emergency funds. Explore refinancing options if interest rates are favorable.
  2. Prioritize Retirement Savings: Maximize contributions to accounts like 401(k)s and IRAs. Avoid tapping into retirement savings unless absolutely necessary.
  3. Continue Multigenerational Conversations: Discuss financial and inheritance plans with your parents and children to minimize any misunderstandings. Instill financial literacy in the next generation.

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 generation.

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. Estate Planning: Regularly update your will and trusts to ensure assets align with your wishes. Strategic gifting to family members may also reduce future estate tax exposure.
  2. Protect Retirement Assets: Review retirement accounts and required minimum distributions (RMDs) to maximize tax efficiency. Diversify investments to protect against market volatility.
  3. Share Financial Knowledge: Host family meetings to discuss financial values and plans, fostering smarter money habits across generations.

Pro Tip: Meet with a financial planner annually to review your plans and adjust for any life changes.

Teaching Gardening

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

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.

This collaboration not only supports multigenerational wealth.

It can foster shared values, financial knowledge, and smart money habits.

Assets are just as precious as any inheritance when it comes to lasting financial stability.

It also fosters communication – which is key. Beyond family, regularly consulting trusted financial professionals can help navigate changes in life, assets, and markets.

Sincerely,

 

    Eddie Zavala, AIF®, RICP®

    Ascend Integrated Wealth

    https://ascendintegratedwealth.com/

    (281) 674-8868

 

P.S. Sign up for my emails. My subscribers get my best insights.

Eddie Zavala, AIF®, RICP®

Ascend Integrated Wealth

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Eddie Zavala, AIF®, RICP®

Ascend Integrated Wealth

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https://ascendintegratedwealth.com/

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Risk Disclosure: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.

This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific situation with a qualified tax professional.

This information is provided for general informational and educational purposes only. The views expressed do not consider any specific individualized financial, legal, or tax considerations. As such, the information contained herein is not intended to be personalized advice, an individualized recommendation, or solicitation to buy or sell any security or engage in a particular investment or financial-related strategy. Nothing herein should be relied upon as such, and there is no guarantee that any opinion or forward-looking statement will come to pass. The information is obtained from what are considered reliable sources, but we do not guarantee the accuracy, completeness, or reliability of the information. Any examples provided are for illustrative purposes and are not intended to be reflective of results you can expect to achieve. Any opinions expressed are subject to change without notice in reaction to shifting markets and other conditions and should not be viewed as an indicator of future performance.

 

There is no assurance that any plan or investment strategy will be successful. Investing involves risk, including the possible loss of principal, and past performance does not guarantee future results. Please consult with your financial adviser before making any financial or investment-related decision. 

Investment advisory services are provided through Mariner Platform Solutions (“MPS”) or Mariner Independent Advisor Network (“MIAN”), both SEC registered investment advisers headquartered in Overland Park, Kansas. Registration as an investment adviser does not imply a certain level of skill or training. MPS and MIAN comply with the current notice filing requirements imposed upon registered investment advisers by those states where MPS or MIAN transact business and maintain clients. MPS or MIAN is either notice filed or qualifies for an exemption or exclusion from notice filing requirements in those states. Any subsequent, direct communication by MPS or MIAN with a prospective client shall be conducted by a representative who is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. Not all services mentioned herein may be offered by MPS or MIAN; affiliates or others may provide some services, which may be subject to additional fees.

For information about which firm your advisor is registered with, please refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov) or the Form ADV 2B provided by your advisor.

Certain MPS Investment Adviser Representatives (“IARs”) market under the AdvicePeriod name, a business name and brand MPS utilizes. 

IARs are independent contractors of MPS or MIAN and generally maintain or affiliate with a separate business entity through which they market their services. The separate business entity is not owned, controlled by, or affiliated with MPS or MIAN and is not registered with the SEC. 

For additional information about the IAR, MPS, or MIAN, including fees and services, please contact the advisor or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you invest or send money.

 

 


This information is provided for general informational and educational purposes only. The views expressed do not consider any specific individualized financial, legal, or tax considerations. As such, the information contained herein is not intended to be personalized advice, an individualized recommendation, or solicitation to buy or sell any security or engage in a particular investment or financial-related strategy. Nothing herein should be relied upon as such, and there is no guarantee that any opinion or forward-looking statement will come to pass. The information is obtained from what are considered reliable sources, but we do not guarantee the accuracy, completeness, or reliability of the information. Any examples provided are for illustrative purposes and are not intended to be reflective of results you can expect to achieve. Any opinions expressed are subject to change without notice in reaction to shifting markets and other conditions and should not be viewed as an indicator of future performance.

There is no assurance that any plan or investment strategy will be successful. Investing involves risk, including the possible loss of principal, and past performance does not guarantee future results. Please consult with your financial adviser before making any financial or investment-related decision. 

Investment advisory services are provided through Mariner Platform Solutions (“MPS”) or Mariner Independent Advisor Network (“MIAN”), both SEC registered investment advisers headquartered in Overland Park, Kansas. Registration as an investment adviser does not imply a certain level of skill or training. MPS and MIAN comply with the current notice filing requirements imposed upon registered investment advisers by those states where MPS or MIAN transact business and maintain clients. MPS or MIAN is either notice filed or qualifies for an exemption or exclusion from notice filing requirements in those states. Any subsequent, direct communication by MPS or MIAN with a prospective client shall be conducted by a representative who is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. Not all services mentioned herein may be offered by MPS or MIAN; affiliates or others may provide some services, which may be subject to additional fees.

For information about which firm your advisor is registered with, please refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov) or the Form ADV 2B provided by your advisor.

Certain MPS Investment Adviser Representatives (“IARs”) market under the AdvicePeriod name, a business name and brand MPS utilizes. 

IARs are independent contractors of MPS or MIAN and generally maintain or affiliate with a separate business entity through which they market their services. The separate business entity is not owned, controlled by, or affiliated with MPS or MIAN and is not registered with the SEC. 

For additional information about the IAR, MPS, or MIAN, including fees and services, please contact the advisor or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you invest or send money.