Asset transfer: Serving the next generation, today

Learn about CollegeBound 529

How would you characterize your best clients? If your answer is something like, "Pre-retirees and retirees – people who have accrued significant wealth over the years," you're not alone. We commonly hear that from top-performing financial advisors.

Think of your clients who fit that profile, and ask yourself:

What's the next asset-gathering opportunity with them?

How can I continue to enhance the level of service I provide them?

How can I increase my chances of retaining their assets when they're transferred to the next generation?

The same, simple answer: Their grandchildren

By talking with your clients about their grandchildren's education, you:

  • Likely create an immediate asset-gathering opportunity.
  • Introduce them to a potentially rewarding opportunity in their own lives and in the lives of their grandchildren.
  • Open the door to the possibility of retaining their assets rather than losing them during generational transfer.

A recent study

In a recent study, we found that:

$58 trillion
$58 trillion estimated in 2007 dollars will be transferred through 2061 to the next generation; the greatest transfer of wealth in history.1
92% of people
92% of people poised to inherit assets from their parents say they will fire their parents' advisor. The reasons can be summed up with a simple idea: The wealth creators simply aren't connecting with the next generation.2
Only 11% of financial advisors
Only 11% of financial advisors are involved in estate planning because it's a sensitive subject, even though it's the most effective way to turn the tide and retain those assets.3

That's precisely why the 529 can be such a powerful tool for financial advisors looking to get involved with the next generation. It's a way to start the estate planning conversation and potentially solve these problems!

Having conversations about the future of the family's children can be optimistic and full of promise. It's a way for the wealth creators to have a huge impact on the future of their families NOW – while they're still here – not at some future point when they're no longer with us.

If you are interested in learning more about Invesco Consulting's new program, The Kids You Love Next, or Invesco's CollegeBound 529 plan, please contact your Invesco sales team at 800 410 4246, ext. 0529.

Learn about CollegeBound 529

1 Source: "A Golden Age of Philanthropy Still Beckons: National Wealth Transfer Potential and Potential for Philanthropy Technical Support" by John J. Havens and Paul G. Schervish (released May 28, 2014), published by the Center on Wealth and Philanthropy.

2 Source: Invesco and R.A. Prince & Associates, Inc. January 2015 study of 144 wealth inheritors, aged 26 to 51 years and receiving $500k to $2MM.

3 Source: Invesco and R.A. Prince & Associates, Inc. January 2015 study of 144 wealth inheritors, aged 26 to 51 years and receiving $500k to $2MM.