The Entrust Experience
Baby boomers have begun to transfer their wealth to the next generation. This has attracted the attention of the media, not surprisingly since the expectation is that baby boomers will pass along $30 trillion dollars to their heirs over the next couple of decades. You read that correctly: $30,000,000,000,000 will be transferred to the next generation.
 
Inheriting money is complicated
Reading that statistic might prompt you to start planning what to do with an inheritance you anticipate receiving someday. But remember that inheriting money is complicated. For instance, a substantial inheritance comes with responsibility and therefore the need to make decisions. What to do?
 
A good first step is to consider: What do I want this money to do for me? For example, perhaps you want to direct it to your teenager's college fund or to the purchase of a vacation home. Or maybe you want your inheritance to pay for your grandchild's college education.
 
After you identify your top personal priorities, you may be ready for step two: Decide on the investment allocation most likely to help you achieve your priorities. One of our clients, Dana, found this step almost paralyzing. While she was accustomed to making decisions regarding the portfolio she had saved from her own earnings, when it came to "my mother's money" as she called it, she could not make a decision.
 
Dana's problem is not uncommon. Because she kept hearing her mother's philosophy of money swirl through her mind she felt an obligation to invest just as her mother would have. Her mother's motto was: A bird in the hand is worth two in the bush! But Dana knew that meant parking the money in a bank savings account which would not help her achieve her priorities.
 
Fortunately we were able to help Dana through her paralysis by educating her on the probable long-term outcome of selecting an asset allocation portfolio for her inheritance rather than leaving it in a bank savings account.
 
Take a look at this video to learn more about the complications of inheriting money.



We would be delighted to have a conversation about an inheritance you received. Contact us today: info@entrustfinancial.com  or 610-678-3515.
 
 Not a promise of any particular investment result; not to be considered tax or legal advice. Actual investment return and principal value of equities, bonds, and mutual funds will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.  There are risks associated with investing, including the risk of loss of principal.  There is no assurance that a diversified portfolio will result in better returns than an undiversified portfolio, nor  does diversification assure against market loss. 

 
 
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