Have you ever sat down with your children or grandchildren, and asked them how they plan to generate and preserve their wealth in the future? If you haven’t, try it. Their answer might surprise you.
When my beloved nephew was born, I knew I was going to instill in him everything my parents taught me about managing finances and planning for the future. Years later, what I didn’t realize was that he wasn't interested in following in my footsteps – he wanted to shape a legacy for himself. In fact, the majority of high-net-worth (HNW) Canadians (68%) say the legacy they want to leave differs from their parents’ views, according to new research from the Economist Intelligence Unit (EIU) commissioned by RBC Wealth Management. Aside from learning my advice and wisdom no longer applied, I also realized the following:
- The younger generation feels challenged by their inability to predict the future
- Women are changing the face of wealth
- The way younger Canadians give is changing
Young HNW Canadians want to do things differently as they commit themselves to leaving a financial and positive social legacy for the world. They are eager to bridge the gender and generation gap and foster financial inclusion. Your generation and the next generation may define wealth and legacy differently. Fortunately, careful planning will enable you to candidly discuss these differences with your family to ensure the continuity of your values, without compromising the wealth you’ve worked to build. Regardless of your life stage or career, it helps you prepare for your financial future. We can help you create a plan to align your financial and personal goals and help to give you and your loved ones peace of mind.
Please feel free to contact me directly with any questions you might have about the report, or if you would like to discuss intergenerational wealth transfer planning in more detail.
Jason Dong, FCSI, WIWM, CIM, M.Eng.
VP & Wealth Advisor
Sharon Chan, CIM
Associate Wealth Advisor