“With great power, there must also come great responsibility.”
This quote from Spider-Man speaks to the consequences of our actions and the beliefs that frame our behaviors, especially when they affect many people.
What does a line from Spider-Man have to do with women over 60?
More than you may think.
My previous article and video examined The Great Wealth Transfer, which involves passing $68 trillion to immediate heirs between 2020 and 2060.
Our generation makes up over $50 trillion of this exchange. A great responsibility could be squandered if you are unprepared to be a good steward of such an exchange.
In the final part of our 10-part series, “The Invisible Customer with All the Money®”, we will explore how you and your heirs can benefit from The Great Wealth Transfer.
If you missed the previous articles, you can find them here:
#1: 7 Steps to Reclaim Your Power from the Media
#2: Aging Stereotypes: Can You Be More Feeble?
#3: 10 Steps to Influence Yourself from Within
#4: What Makes Your World Go Round After 60?
#5: 10 Steps to Unleash Your Inspired Voice After 60
#6: 5 Steps for Taking Back Control of Our Choices from the Media
#7: 10 Steps to Re-Engage with Life After 60
#8: 10 Steps to Bridging the Generational Divide
#9: Are You Ready for the Great Wealth Transfer?
Inheritance Is a Mindset
For centuries, wealthy families have passed down their estates to heirs. The Great Wealth Transfer, however, represents an unprecedented opportunity unlike anything the world has seen.
Over the last decade, large amounts of financial inheritance have expanded far beyond the luxurious confines of the ultra-rich to now include the average person.
Therefore, what makes The Great Wealth Transfer so unique is more than just the astronomical amount of money being transferred. It also goes beyond the sheer number of people around the world receiving it.
As jaw-dropping a number as $68 trillion is, ultimately, an inheritance is less about money and more about mindset. But what kind of mindset?
Three Important Factors
Consider the kinds of beliefs and stories you have about love, money, aging, and life itself. Are they wrapped up in a fixed mindset or a growth mindset?
Your answer will determine how prepared you and your heirs are to make the most of any type of inheritance, especially one that involves a lot of money.
Whatever your involvement in The Great Wealth Transfer will end up being, to properly take advantage of it you will want to adopt a growth mindset.
Here are three important factors that make The Great Wealth Transfer unique and the new growth mindset needed to maximize its benefits:
1. People and families with little to no lineage of financial wealth will benefit.
This requires a new story about money, which produces a new mindset.
2. The world your heirs are inheriting is vastly different than the one you grew up in.
Let go of fixed beliefs about scarcity and relinquish any controlling, manipulative mechanisms for how heirs receive and spend money.
3. It’s not just money that is being transferred it’s a mindset you’re transferring.
A mindset is a set of beliefs. Inheritances are determined by beliefs about money, love, and life. If your beliefs are limiting, your gift is tainted.
10 Steps to Make the Most of It
To ensure your inheritance is transferred efficiently, with love, and is in alignment with your heirs’ wishes, here are 10 steps to make the most of The Great Wealth Transfer:
Education
Understanding the basics of financial planning, tax implications, and estate laws is essential for you and your heirs.
Consult Financial Professionals
Interview three or more professional financial advisors before choosing one. Make sure they are ideally suited for your assets and aligned with your intentions to create a comprehensive wealth transfer plan.
Consult Estate Attorney
The same interview process applies to choosing an estate attorney. Seek professional guidance on drafting a will, setting up trusts, and other legal mechanisms for wealth transfer.
Open Family Conversations
Discuss your beliefs about money, aging, and inheritance plans with family members to set clear expectations and a smooth transition of assets.
Comprehensive Will
To avoid future disputes, clearly identify and define who inherits what.Regularly review and update your will, especially after major life events.
Consider Trusts
Trusts can offer a way to pass on wealth while potentially reducing estate taxes. Trusts can also ensure family members with special needs are properly cared for.
Gifting Assets
Strategies like funding education accounts or giving annual tax-free gifts are beneficial to heirs. However, it is important to understand the potential tax risks and tax benefits of gifting assets before death.
Review Beneficiaries
Update information to ensure the beneficiaries listed on insurance policies, retirement accounts, and other assets are current.
Address Debts and Taxes
Prepare and understand your debt strategy. You don’t want heirs to inherit your debts or be hit with excessively large taxes.
Digital Assets
Be sure to list any digital assets. This means documenting all online accounts, digital assets, and their respective passwords.
One Size Does Not Fit All
This article and the accompanying video are not intended to serve as financial advice. Nor are these 10 steps a one-size-fits-all approach to The Great Wealth Transfer.
Decisions concerning inheritances, whether they are given or received, require proper planning and oversight of a licensed professional.
Whether you are gifting money and assets to family, friends, or a charity, keep in mind this is a legacy exchange. Make sure your choices align with your values and intentions.
I invite you to join me in the video where I will share additional insights along with six journal prompts to help you integrate what you’re learning.
Let’s Have a Conversation:
How do you prepare for and approach inheritances, such as those referenced in The Great Wealth Transfer? Have you set up all proper documentation? What else might you need to do
