Intergenerational Wealth

Fostering wealth stewardship across generations

Many of our clients are in their later years and we have had the privilege of starting to advise their second and third generations. Here is the ideal scenario:

Successful wealth transfers start very early: parents talk to their children about household finances and then include them as teens in conversations about the family wealth and investing.
Parents or grandparents seed a TFSA account with funds for their sons, daughters or grandkids to begin investing. They then add increasing amounts as the kids get older and more comfortable, which lets them experience how it feels to control money and learn from their mistakes within a safe environment and limited parameters.
Too often, young people inherit large estates without knowing how much they will inherit and without having any experience managing money. Many clients leave legacies so large that running the estate is a business in and of itself! Without experience, the stress of managing a multi-million-dollar family fortune can paralyze young investors, or worse, trigger life-changing anxiety.
Second generation inheritors with experience transition into wealth stewardship very well:

  • We will start a relationship with your sons or daughters with a discovery call or visit to learn their goals for the future.

  • We open an account for them, provide recommendations, and educate them on the fundamentals of investing, keeping the experience light and enjoyable.

  • We work collaboratively and explain why certain investment ideas may be risky.

  • Often, the kids are so wary of making mistakes that it takes a year or two before they’re ready to begin. We all make mistakes – it’s part of the process – but we help young people to move forward with informed decisions based on sound investing principles.

  • We teach them that the worst mistake of all is to do nothing!