“One generation is nearing retirement, while one is already there,” Donna Fuscaldo observes in Kiplinger, referring to the way different generations approach retirement planning.”When it comes to baby boomers and Gen Xers, their approaches couldn’t be more different.” (Baby Boomers were born from 1946 to 1964; Gen Xers 1965-1980.)
“Gen Xers are more DIY (do-it-yourself); Boomers are more DIFM (do-it-for-me),” says Eric Ludwig, director of the Center for Retirement Income at the American College of Financial Services. “Gen Xers are more likely to research online and do comparative shopping vs. Boomers, who will ask their circle of friends.”
Such generational differences are often evident when it comes to estate planning, we’ve found at Geyer Law. Not only is it of paramount importance to have parents openly share the values and assumptions – along with the issues – that have gone into their estate planning choices, such meetings reveal to GenXers the urgency of formalizing their own estate planning choices.
In fact, we’ve emphasized at our Indiana estate planning law firm, at every age it’s important to decide what you would like to happen if you are incapacitated and when you die. Not only can frank discussions avoid sibling disputes from erupting after parents have died, family conferences help acquaint the younger generation (who may be GenX “DIYers”), with the members of their parents’ advisory team.
“The largest wealth transfer in history is underway as the Baby Boomer generation transfers assets of $84 trillion into the hands of younger generations,” Jennifer Wines, JD, DPWA® observes in a Kiplinger piece, adding that “open, thoughtful and vulnerable conversation is necessary to unpack the rights and responsibilities that come with inheriting massive resources.” This wealth transfer comes in the context of a startling truth pointed out by Julie Kagan in Investopedia – Generation X is on track to become the first generation to be worse off in terms of being prepared for retirement than their parents!
“Dynamic doesn’t have to mean difficult,” Wines observes, because family conversations provide an opportunity to blend traditional perspectives with fresh ones.
At Geyer Law, we certainly agree!
– by Cara Chittenden, Attorney with Rebecca W. Geyer & Associates
