Date: August 28, 2023

Long Lives & Tech Leaps: The Role of Generational Wealth Today

We continue to see the promising potential for extended life spans in an age of rapidly advancing technology and medicine. If you are 20, you have a 50% chance of living to be 100 or more. If you are already 60, you have a 50% chance of living to be 90 or more. Plus, there are emerging technologies that could extend lifespans even longer.   

While this is a somewhat futuristic perspective, we should ask ourselves: Are we prepared for our 30 or 40 years of retirement and the financial future of our children and their children?

The answer often lies in the reality of generational wealth. As an experienced fiduciary wealth manager in Woodbridge, CT, I have assisted many high-net-worth individuals and families on their journey to build lasting legacies for current and future generations. 

In this blog, I’ll share insights about the importance of building generational wealth and a few strategies you can deploy today to pursue a significant legacy for your family.


Read our popular Quick Guide, “High Net Worth Retirement Planning Strategies in Woodbridge, CT.”


Strategies for Creating Generational Wealth

Education Planning: Higher education can be a stepping stone for your children or grandchildren to pursue comfortable, secure financial futures. Incorporating an education funding plan into your financial plan can provide a path for the next generation(s) to enhance the family’s wealth accumulation.

Defensive Investment Strategies: With the inevitable ebb and flow of financial markets, it’s important to have an investment strategy that can withstand volatility. A more defensive, diversified portfolio, including assets with less correlation to the stock market movement, can protect against volatility, ensuring your wealth doesn’t experience excessive erosion during tough times.

Fee-Only Fiduciary Advisors: As a fiduciary fee-only advisor, I am paid exclusively by my clients, not third parties, to sell their products. This ensures that my financial advice is always in my client’s best interests, without any potential conflicts of interest. 

Live Below Your Means: This doesn’t mean living a deprived life. Instead, it’s about making conscious choices, prioritizing your needs over wants, and saving more than you might feel is necessary. It pays to remember you and your spouse may live another 30 or 40 years after you retire.

Why Choose an Advisor with an AIF® Designation: Financial professionals with the AIF® designation have undergone rigorous training and are held to stringent ethical standards. The AIF® designation amplifies this by emphasizing the responsibilities of financial fiduciaries.

Legacy Planning: After a successful career accumulating substantial wealth, you may consider creating a legacy for your family. When you think about a legacy, knowing your wealth serves a purpose for future generations is comforting. 

Social Security in Connecticut: One frequent question I encounter is, “When should I take Social Security?” While Social Security provides a safety net, maximizing its benefits requires strategy. Many strategies are associated with when you begin taking Social Security benefits, such as age, retirement income needs, tax brackets, etc.  As a fee-only financial advisor in Woodbridge, CT, I specialize in helping clients with these decisions. 


Watch our video on Social Security Benefits.


The Importance of Generational Wealth

Generational wealth and legacy planning go hand-in-hand. Generational wealth refers to the assets and financial resources that are passed down from one generation to the next. At the same time, legacy planning involves making intentional decisions about how those assets will be used, distributed, and preserved for future generations. 

Here are several reasons why generational wealth is so important to your legacy planning efforts:

  • Generational wealth can provide a financial cushion for your heirs. By planning to transfer wealth across generations, you can ensure that your heirs are provided for and can weather economic downturns and unexpected hardships or pursue educational and business opportunities.
  • Legacy planning isn’t just about transferring material wealth. It also transfers values, traditions, and a family’s vision for the future. With a legacy plan, you can perpetuate values that are important to you, like philanthropy, education, or entrepreneurship.
  • Proper legacy planning reduces the potential for disputes among your family members. When there is an understanding of how your wealth will be distributed, a legacy plan can mitigate feelings of resentment or perceptions of favoritism.
  • When tied to philanthropic efforts, generational wealth can have positive impacts beyond just the immediate family. Families can set up foundations, endowments, or scholarships that can leave lasting impacts on communities and institutions.
  • Taxes can significantly erode generational wealth without proper legacy planning. Efficiently transferring assets can help minimize estate taxes and other transfer-related costs, ensuring that the maximum wealth remains within the family or goes toward designated causes.
  • Access to capital can be a significant barrier for budding entrepreneurs. Generational wealth can provide aspiring family members the resources to start businesses, innovate, and contribute to economic growth.
  • Without a clear plan, assets may be squandered or mismanaged. Legacy planning provides a roadmap for how assets should be used, whether it’s for business investments, charitable endeavors, or personal development.
  • Generating wealth is integral to ensuring business continuity for families that own businesses. Legacy planning can provide for the business’s future leadership, governance, and capital requirements.
  • Legacy planning allows you to be remembered for your contributions, values, and the positive impact you created rather than just the assets you accumulated during your lifetime.

If you want a personalized wealth management experience, I’m here to assist you every step of the way. Let’s connect.

plan a bulletproof retirement


Paul Schatz, President, Heritage Capital