Three Generations Weigh in on Wealth

U.S. Trust recently polled 642 high and ultra-high net worth clients revealed several differences between generations on a varied amount of subjects. The three age groups surveyed included: Generation X and Generation Y (18-46), baby boomers (47-66), and those over 70. A few interesting findings are below:

• Generation X and generation Y were the most proactive in providing financially for other generations in the family. 40% of participants aged 18-46 had come up with a plan for their parents’ care needs, while only 20% of baby boomers had provided for their parents’ needs.
• 76% of generation X and generation Y agreed with 73% of those older than 70 about the importance of passing wealth on to generations. Only half of baby boomers agreed with them.
• Most of the survey participants had some kind of estate plan, but many wealthy individuals did not have trusts, especially generation X and generation Y members. This is likely due to a misunderstanding of trusts.
• Those aged between 18 and 46 also preferred growth over preservation when selecting investments, but older generations preferred low-risk strategies.

The president of U.S. Trust attributes the shift in generational behavior to “personal experience and societal responses to economic realities.”

See Mason Braswell, Providing the Right Advice for All Ages, onwallstreet, June 19, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.