Wealth Strategy

By Julian Nowland

Wealth Strategist Julian Nowland, comments on the issue of intergenerational wealth transfer, and the tendency of some clients to rely on assumed future inheritance as security rather than taking charge of their own financial future.

I’ve spoken with many people who assume they’ll receive some sort of family inheritance, to the point where they’ve made it part of their long-term wealth and retirement plan. While it’s perfectly reasonable to consider it as part of a holistic financial plan, when you depend on it you’re effectively putting someone else in control of your financial destiny.

I’ve always felt it’s not so much the money you save that’s critical to your retirement plans, but rather the amount of control it gives you. I’ve had client meetings where the expectations of how much the parents will leave vs how much the children will inherit were greatly mismatched, leading to some rather delicate discussions.

To maintain control of your financial destiny, stick to these six fundamental wealth creation strategies:

1. Start a long-term wealth creation plan as early as possible.
2. Have a budget, and save more that you spend.
3. Don’t take on too much debt.
4. Get rich slowly. Your investments should neither excite you nor make you unduly nervous.
5. Always have 3-4 months’ worth of salary saved for emergencies.
6. Repeat and review.