The need for intergenerational financial planning has never been greater. According to the Centre for Economics and Business Research, those in their 50s, 60s and 70s command almost 70% of all household wealth in the UK. Generation-to-generation wealth transfer is predicted to increase from £69 billion in 2017 to £115 billion by 2027. Intergenerational wealth – why making wealth a family discussion will benefit everyone
Despite this immense transfer of wealth, some families find it difficult to have an open discussion about it, maybe feeling it’s a bit of a taboo subject, best avoided. Encourage your clients not to put their heads in the sand With the older generation living longer and potentially needing help in managing their finances as they get older, it’s never been more important for children and parents of any age to be able to communicate effectively about family wealth issues. We’re in this together – embrace a fresh perspective As an adviser, if you can encourage wealth matters to be openly discussed as a family, it will help to establish financial priorities and expectations. Having a considered approach to the impact of wealth on the family is probably the best way forward; the purpose of the family’s wealth is agreed upon and all parties are aware of their roles, rights and responsibilities. It also helps to clarify goals and to ensure that the right plans are in place to support each generation according to their needs. The benefit for advisers is obvious – a continuing client base through the generations.
give investors access to a variety of investments, balanced to reflect specific risk profiles, providing diversified investment solutions to meet a range of financial planning needs. Understanding how people define investment goals and regard risk, led Sinfonia Asset Management to pioneer the development of its risk-targeted fund range. Each of the five funds has a defined profile designed to meet the needs of a discrete type of investor and can cater for both income and capital appreciation goals, designed for medium to long- term time horizons (5 years+). The managers of these funds aim to build a diverse portfolio that delivers consistent risk-targeted returns. If your client’s risk profile or family risk profile changes, then there is the flexibility to switch to another risk targeted fund within the range that meets your client’s new requirements. Keep talking Passing down wealth in an efficient way requires expert advice. Advisers should show their experience of looking after family finances in a holistic way and demonstrate that they are happy to be involved with these discussions. Once goals are established, the adviser’s role is to make plans that will deliver the outcomes their clients seek, whilst ensuring that the practical needs of each generation are respected and addressed.
Risk-targeted investments to span the generations
Risk-targeted funds provide a great solution for a family friendly investment opportunity as the funds
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Contact us Please contact Sinfonia for more information about our fund range and how we can support you and your business, we’re always happy to talk.
Risk Warning – The value of investments and the income from them can go down. You may not get back the original amount invested. Copies of the Prospectus and Key Investor Information Documents are available from www.ifslfunds.com or can be requested as a paper copy by calling 0845 123 1083 or writing to IFSL, Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP. Sinfonia is a trading style of Sinfonia Asset Management Ltd, Registered in England & Wales No. 06309491. Investment Fund Services Limited is the Authorised Corporate Director the IFSL Sinfonia OEIC. Investment Fund Services Limited is authorised and regulated by the Financial Conduct Authority.
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