Skip to main content

Liquidity Replenishment Process | Grant Making  | Getting Started  |  Brochure  |  Forms  | FAQ  |  In The News
  • Access My Fund Login
Partner Gateway Login
Existing Advisors  New Advisors

  • Home
  • About AEF 
    • Vision, Mission & Values
    • Policy Statements
    • Our Team
    • Careers
    • Board of Directors
    • Council of Advisors
    • Getting Started
  • Donors 
    • What is a Donor Advised Fund?
    • Library for Donors
    • Sign Up for Guidance for Good
    • Understanding the Granting Process for Donors
    • How to Make Grants
  • Trusted Advisors 
    • Investments
    • Partner Gateway
    • AEF Insights Newsletter Signup
  • Thought Leadership 
    • Choosing a Donor Advised Fund
    • Real Estate
    • Charitable Trusts
    • IRA Charitable Rollover
    • Retirement Planning
    • Life Insurance
    • Scholarships
    • Charitable Planning Conversation
    • Private Foundations
    • Tax Savings
    • Bequests
    • Building your Financial Practice
    • Estate Planning
    • Roth IRA Conversion
    • Closely Held Shares
    • Agriculture
    • Forced Capital Gains
    • Selling a Business?
    • Donors: Advice for Giving
  • Videos
  • Access My Fund Login
  • Contact
  • Forms

 

    You are here

  1. Home
  2. Blogs
  3. Forging a Path to your Client's Next Generation

Forging a Path to your Client's Next Generation

Submitted by American Endowment Foundation on November 30th, 2020

By Eric Kinaitis

An edition of the J.D. Power Full Service Investor Satisfaction Study uncovered some uncomfortable facts: 58% of advisor clients have never been asked by their advisor about their wealth transfer plans or how they want to transfer their assets to their next generation. However, 71% of advisor clients indicated a willingness to have such a conversation with their advisor.

Why the disconnect? Apparently awkwardness is to blame. Mike Foy, director of the wealth management practice at J.D. Power states,” Talking to clients about their beneficiaries may feel awkward to many advisors, but most investors want their wealth to benefit the next generation. Many times, investors themselves struggle in money-related conversations with their kids, and an advisor is in a unique position to be a bridge between generations. Firms that can effectively train and support their advisors in this regard have a real opportunity to differentiate their services.”

Failing to engage with current clients on how they want to transfer their wealth to the next generation of family is only one disconnect the study found. Intragenerational wealth transfer is another stumbling block; the survey determined that 23% of advisor clients indicated that their advisor never interacts with their spouse/partner.

By recognizing that no client is immortal and that the median age of a full service investor is 61, it is imperative that financial advisors make inroads to the spouse/partner and heirs of their clients. Failure to do so puts the future AUM levels of their firm at risk.

How to Start the Conversation?

The concepts of family estate planning and charitable planning are a good start. Those topics provide guidance to an advisor on how to overcome the awkwardness of starting the conversation. Both topics help nail down the interests of their client and how to help them plan for the day when their wealth must transfer to support their loved ones as well as ensuring that a charitable legacy they began in life continues into the future.

Donor advised funds (DAFs) have become a proven tool in helping both clients and their trusted advisors manage this process. DAFs not only work well with other types of charitable strategies but can also help provide a host of tax savings.

Additionally, donor advised funds become an alternative to the traditional means of making cash donations on an after-tax basis that many donors normally do now to their favorite causes.

Contact or call us at 1-888-660-4508 and let us discuss how American Endowment Foundation and donor advised funds can play a role in helping your business better understand the wealth transfer needs of your clients.

Categories

  • 1031 exchange (1)
  • 401(k) (1)
  • accountant (1)
  • agriculture (1)
  • alternative assets (1)
  • alternative investments (1)
  • amt (1)
  • appreciated assets (3)
  • appreciated stock (1)
  • art donation (1)
  • bad market (1)
  • bargain sale (1)
  • beneficiary (1)
  • business exit (2)
  • business growth (1)
  • business sale (2)
  • c-corp shares (1)
  • capital gains tax (2)
  • cares act (2)
  • carried interest (1)
  • charitable bequests (1)
  • charitable bunching (1)
  • charitable bundling (1)
  • charitable donations (3)
  • charitable gift annuity (1)
  • charitable giving (12)
  • charitable lead trust (2)
  • charitable planning (16)
  • charitable remainder trust (2)
  • charity (1)
  • chnpts (1)
  • client relations (1)
  • closely-held shares (4)
  • clt (2)
  • commodities (1)
  • contemporaneous written acknowledgement (1)
  • corporate daf (2)
  • corporate donor advised fund (2)
  • corporate giving (2)
  • cpa (2)
  • crt (2)
  • divorce (1)
  • donor (1)
  • donor advises funds (1)
  • down market (1)
  • ESG (1)
  • estate planning (4)
  • grant making (1)
  • HNW (1)
  • impact investing (1)
  • independence (1)
  • insurance (1)
  • international giving (1)
  • ira (1)
  • ira charitable rollover (1)
  • legacy (1)
  • legacy fund (2)
  • next gen donors (1)
  • non-publicly traded stock (1)
  • noncash assets (1)
  • opening a daf (4)
  • philanthropic advisors (4)
  • philanthropic planning (10)
  • placeholder fund (5)
  • private foundations (6)
  • private-label DAFs (2)
  • qcd (1)
  • qualified charitable distribution (1)
  • real estate (4)
  • recession (1)
  • required minimum distribution (1)
  • retirement planning (2)
  • rmd (1)
  • roth ira (1)
  • scholarships (1)
  • stacking (1)
  • successor advisor (1)
  • tax breaks (1)
  • tax cuts and jobs act (1)
  • taxes (13)
  • terminating a private foundation (2)
  • transfer (2)
  • wills (1)

Custom:footer-contact Details

Office Location

5700 Darrow Road Ste. 118,
Hudson, Ohio 44236

Get Directions

Phone: 1-888-402-9179
Fax: 330-656-2063

© 2022 American Endowment Foundation. All rights reserved.

Website Design For Financial Services Professionals