The need for intergenerational financial planning has never been greater. According to the Centre for Economics and Business Research, those in their 50s, 60s and 70s command almost 70% of all household wealth in the UK. Generation-to-generation wealth transfer is predicted to increase from £69 billion in 2017 to £115 billion by 2027.

Despite this immense transfer of wealth, some families find it difficult to have an open discussion about it, maybe feeling it’s a bit of a taboo subject, best avoided. Let’s face it, older generations don’t always like to dwell on the future. Understandably, they quite often find it upsetting to start a dialogue with their loved ones on sensitive issues like inheritance and death.

Many parents don’t feel comfortable discussing money matters with their children because they don’t want them to become complacent about a possible inheritance, which could impact their work ethic. So, although wealth brings many advantages in terms of access to life’s opportunities, it can have an impact on relationships and on the family as a whole.

Encourage your clients not to put their heads in the sand

With the older generation living longer and potentially needing help in managing their finances as they get older, it’s never been more important for children and parents of any age to be able to communicate effectively about family wealth issues. To truly engage with the topic, will benefit everyone in the long run.

We’re in this together – embrace a fresh perspective

There is a growing recognition that family wealth planning meetings can be beneficial and lead to a better understanding of the issues being experienced.

Increasingly, people are taking heed and instead of each generation making their own financial provisions, families are starting to consider how to use their collective resources in the most effective, tax-efficient way to benefit all members.

As an adviser, if you can encourage wealth matters to be openly discussed as a family, it will help to establish financial priorities and expectations. Having a considered approach to the impact of wealth on the family is probably the best way forward; the purpose of the family’s wealth is agreed upon and all parties are aware of their roles, rights and responsibilities. It also helps to clarify goals and to ensure that the right plans are in place to support each generation according to their needs.

The benefit for advisers is obvious – a continuing client base through the generations.

Risk-targeted investments to span the generations

Risk-targeted funds provide a great solution for a family-friendly investment opportunity, as the funds give investors access to a variety of investments, balanced to reflect specific risk profiles and providing diversified investment solutions to meet a range of financial planning needs.

Understanding how people define investment goals and regard risk led Sinfonia Asset Management to pioneer the development of its risk-targeted fund range.

Each of the five funds has a defined profile designed to meet the needs of a discrete type of investor and can cater for both income and capital appreciation goals, designed for medium to long-term time horizons (5 years+).

The managers of these funds aim to build a diverse portfolio that delivers consistent risk-targeted returns. If your client’s risk profile or family risk profile changes, then there is the flexibility to switch to another risk targeted fund within the range that meets your client’s new requirements.

Keep talking

Passing down wealth in an efficient way requires expert advice. Advisers should show their experience of looking after family finances in a holistic way and demonstrate that they are happy to be involved with these discussions.

Once goals are established, the adviser’s role is to make plans that will deliver the outcomes their clients seek, whilst ensuring that the practical needs of each generation are respected and addressed.


Guest article supplied by Sinfonia Asset Management Limited

Risk Warning – the value of investments and income from them can go down. For investment professionals only. Not for onward distribution. No other person should rely on any information contained within this document.

Sinfonia Asset Management Ltd is registered in England No. 06309491. Registered Office: 5 Lister Hill, Horsforth, Leeds, LS18 5AZ. Sinfonia Asset Management is not regulated or authorised by the Financial Conduct Authority or the Prudential Regulation Authority. Investment Funds Services Limited (IFSL) is the Authorised Corporate Director for the IFSL Sinfonia OEIC. IFSL is regulated and authorised by the Financial Conduct Authority.