Intergenerational wealth and inheritance
Receiving an inheritance can significantly impact your personal financial situation and change your family’s wealth.
For some, receiving an inheritance is a life-changing experience, but as with all major financial decisions, it can bring with it some changes and complexities.
At North Advisory, we have a team of experts in family wealth management who can help make your money really work for you.
Research from the Productivity Commission reveals that the baby boomer generation will pass on an estimated $224 billion annually in inheritances by 2050.
This wealth will come from property assets, superannuation, cash and shares.
Are you expecting an inheritance or in your wealth accumulation years and looking to equip your family for a financially secure future?
Either way, our team can help.
Inheriting money or property
A study commissioned by money expert Vanessa Stoykov in 2021 revealed the average Australian could have a whopping $320,000 passed on in inheritance, with two in three Australians planning on leaving an inheritance to their kids.
Receiving an inheritance can be a bittersweet experience, as the grief of losing a loved one is mixed with the need to make sound financial decisions for your future.
Ultimately, you can choose to spend your inheritance however you see fit, but there are ways in which you can utilise your inheritance that are in the best interest of your own path to wealth accumulation.
These include:
- paying off high-interest debts
- making catch-up super contributions
- salary sacrificing
- buying or managing property assets
- investing in shares.
At North Advisory, we often find that when people receive an inheritance it’s not uncommon for them to simply leave their money sitting in a bank account until they have something specific they want to buy.
And while a standard transaction or savings account might be a relatively safe place to keep your funds… they aren’t really doing anything for you.
Our team offers an extensive range of wealth management services and can tailor a solution that truly meets your unique needs.
Many people have big plans to invest the inheritance they receive.
Our wealth management services take into account your values and life goals and the stage of life you are currently in, whether you are:
- Accumulating wealth – (25-45)
- Securing your future – (45-65) or
- Funding your retirement (65+)
In the instance of receiving an inheritance, your personal financial situation can change literally overnight, and while there is no harm in treating yourself or indulging in some self-care, failing to establish a financial plan could see you blow your big chance to secure your financial future.
When managed the right way, receiving an inheritance can offer investing opportunities you had otherwise not considered, with many inheritance recipients choosing to set up a family trust that will later benefit their own children and keep the wealth in the family for many generations to come.
The types of investments you make will depend on the investment risk you are willing to take.
Your risk tolerance as an investor is dependent on a snapshot of your entire financial situation, including your age, current assets and family situation.
A younger investor may have more time to ride out periods of volatility, for example, than those who are retired or about to retire.
A financial adviser is necessary to help you structure the right investment strategy for your circumstances because the inheritance you receive is personal, and so too should the advice you take on what best to do with it.
At North Advisory, we know the importance of feeling confident about your financial position and we can help you achieve positive outcomes with our tailored personal wealth management advisory services.
Partner with us today so that you can be excited about the future.
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Don’t hesitate to contact us if you’re ready to streamline your financial management with tailored solutions. Your business’s success is our primary focus. Fill in the contact form or call us to book an initial 30-minute chat.
Suite 6, 11 Oaks Avenue
Dee Why, Northern Beaches
NSW 2099
Australia