Extending financial planning to the next generation
In association with
November 2020
THE WAYS FAMILIES TALK ABOUT THEIR FINANCES
book of stories 2.0
THE IMPACT OF COVID-19 ON FAMILIES
PERCEPTIONS OF ADVICE
THE ROLE OF THE ADVISER
© Metropolis Financial Platforms Ltd 2020. ALL RIGHTS RESERVED
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Introduction by Money Marketing editor Justin Cash
You might not understand them. You might not even like them much. But the fact is millennials are set to inherit trillions of pounds by the middle of this century. Is the advice profession prepared? This is the subject Charles Stanley tackles in its second white paper Book of Stories 2.0, a milestone white paper on how we can extend financial planning to the next generation. Building on its first report last year, Book of Stories 2.0 has now expanded to look at how individuals across all generations perceive advice in the context of this debate Critically, its purpose is overwhelmingly a practical one. It moves away from the theory we discuss all too often in the profession, to takeaways that you can actually use in your own firms to meet the myriad of challenges presented by intergenerational wealth transfer. Nowhere are those takeaways more vital, to my mind, than where the report discusses the value of advice, and the perception of the advice profession, in this area. One could argue that we aren’t really doing the kind of life planning on which the modern profession prides itself - the laser-like focus on what a client gets out of their money rather than just how much of it they have - if we don’t consider the emotional value clients feel when they gift during their own lifetimes.
‘Starting the conversation early with clients - so they are still around to experience the joy of seeing their money put to good use - creates memories to treasure’
Deciding how to leave money on death is a key reason clients are drawn to advisers, sure. However, as both longevity and financial pressures on the young have increased, future generations may end up receiving their inheritance far later than when it would really come in handy. Starting the conversation early with clients, so they are still around to experience the joy of seeing their money put to good use – while not sacrificing their own financial security – creates memories many will come to treasure, a fact I’m acutely aware of through my own experiences with friends and family. This is a great example of the evolution of modern planning. Where once, tackling this debate, we might have focused on technical knowledge of inheritance tax rates and capital liabilities, we can now move the conversation on to the soft skills advisers need in their arsenals to guide clients through what can be one of the toughest financial decisions they ever face. We hope you enjoy this report, and we commend Charles Stanley for its pragmatic approach to a prominent issue facing the advice profession today, and undoubtedly for years to come.
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THE WAYS FAMILIES TALK ABOUT THEIR FINANCES, AND HOW THE GENERATIONS DIFFER
Tensions can often flare when families start talking about money. Younger generations can pick up bad habits from their forebears, or they may have completely different priorities from the rest of their relatives. Sometimes, however, what drives generations may not be that different after all. How can advisers get families talking and find out what really matters to everyone involved?
click here to download book of stories 2.0
A global pandemic has forced many people, particularly the older generation, to consider their own mortality. For youngsters, their finances may have become even less secure as job prospects dwindle. Here’s how wills and lifetime transfers are shooting up the agenda.
Deciding how to leave money on death is one of the most important financial decisions any individual has to make. Clients know that advice can be incredibly valuable in this area. But what do they really expect from their planner, and is the profession meeting those expectations?
As the adviser’s gaze widens from individuals to whole families, complications abound. Managing a host of conflicting attitudes and interests across the group can certainly be challenging. But opportunities abound too when clients may need help with anything from business succession to lifetime gifting. Does your firm need to think about new fee models or business structures to take advantage?
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Visit www.charles-stanley.co.uk/advisers/book-of-stories to get free copies of our white papers, which together will help you understand the next generation, how you can engage with them and ultimately future-proof your business. If you would like to discuss anything in the white papers, get in touch today. Tel: 020 3930 4457 Email: ist@charles-stanley.co.uk The value of investments can fall as well as rise. Investors may get back less than invested. Past performance is not a reliable guide to the future. Tax treatment depends on the individual circumstances of each person or entity and may be subject to change in the future. Charles Stanley & Co. Limited is authorised and regulated by the Financial Conduct Authority, a member of the London Stock Exchange and a wholly owned subsidiary of Charles Stanley Group PLC. Registered in England number 1903304. Registered office: 55 Bishopsgate London EC2N 3AS.
