Latest news with #CerulliAssociates
Yahoo
13-07-2025
- Business
- Yahoo
A big payday is on the horizon for Gen X
If you're a Gen Xer, your retirement prospects may get a boost from a major transfer of wealth that's on the horizon. Members of the so-called forgotten generation — now aged 45 to 60 — stand to receive $1.4 trillion annually over the next decade, according to a new report from Cerulli Associates, as their baby boomer parents get older and die. The report notes that while millennials will still inherit the most money over the next 25 years, totaling $45.6 trillion, Gen X members will receive more money than any other generation in the near term. 'The boomers really have created more wealth than any other generation in US history,' Bradley Schurman, author of "The Super Age," told Yahoo Finance. 'And younger Gen Xers and early millennials are going to be the ones that get the first wave of this from their parents.' If you're not quite ready for a financial adviser to join forces with you, consider a robo-advisor. Learn more: How to start investing right now with a robo-advisor Vanguard, for instance, offers several layers of advice for those who might want less handholding, but all include tax-efficient strategies and portfolio management for retirement planning and advice customized for you. To have access to a robo-advisor, you'll shell out an annual advisory fee of $15 for every $10,000 you have invested at Vanguard. For access to a hybrid personal adviser and robo-helper, it's $30 for every $10,000 invested as long as you have at least $50,000 in Vanguard artificial intelligence approach can be a smart first step. That said, 'artificial intelligence is not designed to be a counselor and partner in retirement,' Schurman said. 'AI offers a great starting point, but it doesn't have the emotional intelligence needed to assist individuals in the long run,' Schurman added. Learn more: How to start investing — a 6-step guide Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky. Sign up for the Mind Your Money newsletter Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
12-07-2025
- Business
- Yahoo
A big payday is on the horizon for Gen X
If you're a Gen Xer, your retirement prospects may get a boost from a major transfer of wealth that's on the horizon. Members of the so-called forgotten generation — now aged 45 to 60 — stand to receive $1.4 trillion annually over the next decade, according to a new report from Cerulli Associates, as their baby boomer parents get older and die. The report notes that while millennials will still inherit the most money over the next 25 years, totaling $45.6 trillion, Gen X members will receive more money than any other generation in the near term. 'The boomers really have created more wealth than any other generation in US history,' Bradley Schurman, author of The Super Age, who was born in 1974, told Yahoo Finance. 'And younger Gen Xers and early millennials are going to be the ones that get the first wave of this from their parents.' If you're not quite ready for a financial adviser to join forces with you, consider a robo-advisor. Learn more: How to start investing right now with a robo-advisor Vanguard, for instance, offers several layers of advice for those who might want less handholding, but all include tax-efficient strategies and portfolio management for retirement planning and advice customized for you. To have access to a robo-advisor, you'll shell out an annual advisory fee of $15 for every $10,000 you have invested at Vanguard. For access to a hybrid personal adviser and robo-helper, it's $30 for every $10,000 invested as long as you have at least $50,000 in Vanguard artificial intelligence approach can be a smart first step. That said, 'artificial intelligence is not designed to be a counselor and partner in retirement,' Schurman said. 'AI offers a great starting point, but it doesn't have the emotional intelligence needed to assist individuals in the long run,' Schurman added. Learn more: How to start investing — a 6-step guide Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky. Sign up for the Mind Your Money newsletter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
Got a big inheritance coming your way? You may want to just say no. Here's why.
An inheritance often is seen as a financial windfall, but there are times when people may want to consider saying thanks, but no thanks. Receiving a sizable gift, if not structured properly, can have unintended consequences that may upend your financial situation or cause friction between family members. If either of those is the case, consider refusing it, experts said. It may not be worth your time, money or emotions. 'It's very important what type of asset you're inheriting -- what it can do for you and if it fits into your universe, and are you the best custodial of those assets,' said Miklos Ringbauer, certified public accountant in Southern California. The so-called great wealth transfer has begun. Nearly $124 trillion in assets will change hands through 2048, according to estimates by the consulting firm Cerulli Associates. Recipients are expected to inherit some $106 trillion of that amount, mainly from baby boomers, with the rest going to charity. Assets passed down will include cash and other liquid assets, stocks and bonds, real estate, business interests, retirement accounts, other investments, and personal property. Saying no to an inheritance isn't typical, and experts suggest you consult with a financial planner and an accountant to help you determine if it's right for you. However, some instances in which you might want to consider refusing an inheritance include if: Inheriting assets would increase the size of your estate and potentially create tax planning complications for your own heirs once it's time to pass your assets on. Accepting certain assets, such as money in an IRA or 401(k), leaves you with a big tax bill because you'd have to pay taxes on distributions, Ringbauer said. Distributions from accounts like a 401(k) or IRA are considered income, not capital gains, and could push you into a higher tax bracket. They also do not receive a step-up basis, meaning the cost basis would remain the same as the original owner. Inheriting assets causes a rift in the family. 'If mom has four kids and leaves a daughter a little bit more, if daughter takes it, people will say she stole it or mom doesn't love me as much,' said Patrick Simasko, elder law attorney and financial adviser at Simasko Law. 'If she loses relationships with her siblings, she shouldn't take it because of the emotional drama.' Accepting property that's too hard to manage or unsellable. 'Look at it before you accept,' Simasko said. 'You may not want it.' Examples include large vacant lots in isolated areas and timeshares. Neither are easy to sell but will cost you annual fees the rest of your life, he said. Claiming an inheritance can push you above income and asset limits to qualify for government programs like Medicaid or Supplemental Security Income (SSI). However, it isn't as simple as disclaiming an inheritance to stay within the limits because refusing an inheritance is seen as gifting, which also isn't allowed. Because disclaiming an inheritance can still hurt you, some experts suggest you take the inheritance and spend it down immediately to requalify for benefits. Medicaid recipients can use their inheritance to pay off debt, pay for long-term care, make home modifications for safety and accessibility, prepay funeral and burial expenses via an Irrevocable Funeral Trust, or buy assets that are exempt from Medicaid's asset limit such as furniture and appliances for one's home, clothing, or upgrading a vehicle, according to the American Council on Aging. The best way to avoid this is to ensure the 'parent doesn't leave the person money,' Simasko said. 'Use a special trust instead and the person can draw from it.' For example, assets to a beneficiary of an irrevocable trust don't affect the beneficiary's assets and wouldn't count against their qualification for government benefits, Ringbauer said. Yet, the beneficiary would be able to tap those assets. The legal process is 'disclaiming' an inheritance, which means you're refusing to accept the rights to the assets you were supposed to inherit. Here's generally how it would work: Nine months to disclaim. Since it can sometimes take up to six months to get all the paperwork – letter disclaiming, signed, and maybe notarized and witnessed, and delivered -- there's no time to waste once you discover there's an inheritance out there you don't want your name on, Ringbauer said. Disclaiming is irreversible. Once disclaimed, you can't change your mind. You must not have received any benefits or taken possession of the asset before disclaiming. Check state rules. Every state has its own rules on inheritances so you need to check those to make sure you're compliant. Disclaimed inheritances will go to the next person, or beneficiary, in line. You can't choose the person to receive the asset. If there isn't another person named as a next beneficiary, the asset would go through the probate process to be left to someone related to the deceased. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: Why you might want to walk away from your inheritance
USA Today
27-06-2025
- Business
- USA Today
Got a big inheritance coming your way? You may want to just say no. Here's why.
An inheritance often is seen as a financial windfall, but there are times when people may want to consider saying thanks, but no thanks. Receiving a sizable gift, if not structured properly, can have unintended consequences that may upend your financial situation or cause friction between family members. If either of those is the case, consider refusing it, experts said. It may not be worth your time, money or emotions. 'It's very important what type of asset you're inheriting -- what it can do for you and if it fits into your universe, and are you the best custodial of those assets,' said Miklos Ringbauer, certified public accountant in Southern California. Why should people think about inheritance now? The so-called great wealth transfer has begun. Nearly $124 trillion in assets will change hands through 2048, according to estimates by the consulting firm Cerulli Associates. Recipients are expected to inherit some $106 trillion of that amount, mainly from baby boomers, with the rest going to charity. Assets passed down will include cash and other liquid assets, stocks and bonds, real estate, business interests, retirement accounts, other investments, and personal property. When might you want to say no? Saying no to an inheritance isn't typical, and experts suggest you consult with a financial planner and an accountant to help you determine if it's right for you. However, some instances in which you might want to consider refusing an inheritance include if: Beware, tricky government benefits Claiming an inheritance can push you above income and asset limits to qualify for government programs like Medicaid or Supplemental Security Income (SSI). However, it isn't as simple as disclaiming an inheritance to stay within the limits because refusing an inheritance is seen as gifting, which also isn't allowed. Because disclaiming an inheritance can still hurt you, some experts suggest you take the inheritance and spend it down immediately to requalify for benefits. Medicaid recipients can use their inheritance to pay off debt, pay for long-term care, make home modifications for safety and accessibility, prepay funeral and burial expenses via an Irrevocable Funeral Trust, or buy assets that are exempt from Medicaid's asset limit such as furniture and appliances for one's home, clothing, or upgrading a vehicle, according to the American Council on Aging. The best way to avoid this is to ensure the 'parent doesn't leave the person money,' Simasko said. 'Use a special trust instead and the person can draw from it.' For example, assets to a beneficiary of an irrevocable trust don't affect the beneficiary's assets and wouldn't count against their qualification for government benefits, Ringbauer said. Yet, the beneficiary would be able to tap those assets. How to decline an inheritance The legal process is 'disclaiming' an inheritance, which means you're refusing to accept the rights to the assets you were supposed to inherit. Here's generally how it would work: What happens to the disclaimed inheritance? Disclaimed inheritances will go to the next person, or beneficiary, in line. You can't choose the person to receive the asset. If there isn't another person named as a next beneficiary, the asset would go through the probate process to be left to someone related to the deceased. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
Yahoo
25-06-2025
- Business
- Yahoo
An $84 trillion wealth shift is underway, and you may soon inherit a piece of it. Here's what to expect
The biggest wave of wealth in history is set to pass from baby boomers over the next 20 years, and it's going to have a huge impact on those who stand to inherit it. It's called The Great Wealth Transfer — when an estimated $84 trillion is poised to move from older Americans to Gen Xers and millennials. If it's managed smartly, younger Americans will be able to grow their wealth and ensure their financial security for life. 'Preparing for the Great Wealth Transfer requires careful planning and strategic decision-making for individuals on both sides of the equation — inheritors and those leaving the assets behind,' says Nicholas Yeomans, CFP, president of Yeomans Consulting Group in the Atlanta area. Both older and younger generations need to ensure this wealth goes where it's intended and that it does so tax-efficiently. So those looking to get a piece of the Great Wealth Transfer should consider how a top financial advisor can help them navigate the many issues that will occur — including how to turn that wealth into lifetime income, how to reduce taxes on distributions and how to simplify the legal issues around inheritance. Learn more: A guide to financial planning and how to get started The Great Wealth Transfer is beginning, with the baby boomers — who own about half the country's wealth — passing on $84 trillion to heirs through 2045, according to Cerulli Associates. Experts project that younger generations such as Gen X and millennials will inherit $72 trillion of that total, while charities are set to receive the rest. It's been called the largest transfer of wealth in history — and it's poised to make millionaires of many people. Of course, the Great Wealth Transfer will take decades to play out. While the oldest boomers (born 1946–1964) are 79 this year, the youngest are turning 61, not even able to claim Social Security yet. Many Americans have time to prepare their finances so that they and their heirs thrive in the future. But it's not too early for Gen Xers (born 1965–1980) and millennials (1981–1996) to begin planning for this massive financial shift, too. The majority of this wealth will be transferred among the wealthiest 10 percent of Americans, according to the New York Times. The top 1 percent wealthiest control as much as the bottom 90 percent of the country as a whole, while the bottom 50 percent direct about 8 percent of the wealth. Regardless of which tier you sit in, you want that money to go where you intend, while minimizing the effect of taxes on the distribution. That's exactly how a financial advisor can help older generations. It's vital that Americans think about how to manage their estates so that their wishes are met and so that they can minimize costs for their heirs and set them up for success. Of course, a good advisor can be valuable at this moment for those inheriting wealth, too. Wealth is not income, so even if younger generations inherit wealth, they may need to turn it into income that can sustain them over time, perhaps through dividend stocks or annuities. Others may inherit real estate that can be used to generate income or else house them and cover what's likely the single largest expense for most people. So a good advisor can help turn inherited wealth into an income stream for life, providing sustainable financial security. Compare advisors: Bankrate's list of the best financial advisors One of the difficulties in planning for the Great Wealth Transfer is knowing how to deal with the legal issues of passing on wealth — that is, creating an estate plan. Good advisors have seen it all before and know the best ways to navigate this complex process so that you can avoid not only the legal snags but the human issues surrounding it. Regardless of how much wealth you're working with, experts say you need an estate plan. The estate plan must have a will and may have a trust, if you're working with more assets. But even one of the simplest ways to make sure that your assets go where you want is to name a beneficiary on your financial accounts, sidestepping the hassles of probate court. If you're using a trust, it's important that your assets are registered in the trust properly if you want them to enjoy the trust's protection. Whereas accounts that have named beneficiaries supersede the trust's instructions, you'll need to make a complete inventory of all other accounts and ensure that they're properly registered as part of the trust structure. Beyond that, it's important to communicate the plan to potential heirs so that everyone is informed, a point that advisors routinely emphasize. 'Proactively communicate the plans you have in place to your beneficiaries, especially those with kids,' says Eric Bond, president, Octave Wealth Management in Long Beach. 'Remember, these conversations are key, because once you pass, your plans are irrevocable. So, this proactive communication allows you the ability to uncover a small problem today, preventing your children from facing a big problem down the road.' Again, this process can be driven not only by those who are giving away their wealth but also by younger generations. It's important that potential heirs open discussions so that they know where accounts and important documents are located. 'While these conversations may be difficult to broach with parents, you can keep things simple: your parents don't have to share account balances with you but simply provide the location, registration and beneficiaries so it can be easily accessed upon their death,' says Bond. Making estate plans can be incredibly complex and require extensive knowledge about the best way to keep and grow your assets, so an expert advisor can help you sort things out smartly. 'Individuals and families should consider engaging financial professionals to develop comprehensive financial, tax and estate plans that align with their long-term goals and values,' says Yeomans. Get started: Match with an advisor who can help you achieve your financial goals While the Great Wealth Transfer can be daunting, it's a moment to get smart about finances, plan for your money to endure and even build generational wealth. 'The biggest slip-up is when the person inheriting the money fails to proactively plan,' says Bond. 'Unfortunately, this often results in not investing the inheritance in the best possible way and instead spending the money unnecessarily.' Bond points to paying 'expensive and unexpected tax bills' as one place of fruitless spending. With smart planning, more of that money can stay in the pockets of heirs. For older Americans, one way to help heirs sidestep taxes is to convert a traditional IRA to a Roth IRA. While that may involve paying taxes today, it allows heirs to avoid taxes later on, potentially after enjoying significant gains. Financial advisors can help you understand whether the move makes sense for your situation and walk through some of the complexities of an inherited IRA. But even if you're not going to undertake complicated maneuvers, it's still important to understand key inheritance issues, such as the step-up in cost basis on assets. The step-up in basis may save even regular Americans hundreds of thousands of dollars, though many people accidentally make decisions that derail this serious tax savings. 'When you inherit an asset, the value of that thing might be more than what it was when the person who left it to you originally bought it for,' says Bond. 'The step-up basis is basically resetting the value of that thing to what it's worth when you inherit it.' Heirs may ultimately save a ton by waiting to sell assets after they've been passed down, when they have a higher cost basis and will therefore owe lower or no capital gains taxes. Finally, the Great Wealth Transfer also offers a moment to consider which assets build more wealth over time. Long-term returns have historically been strongest in a diversified portfolio of stocks. The Standard & Poor's 500 Index — a collection of hundreds of America's best companies — has returned about 10 percent on average annually over long stretches. It's a proven wealth-building strategy and one endorsed by legendary investor Warren Buffett. A good advisor can help you set up smart investments that can build wealth for decades. Learn more: Match with an advisor who can help you achieve your financial goals A tremendous amount of wealth will be moved during the Great Wealth Transfer, so it's wise to begin planning as soon as possible. Smart estate planning can help older generations pass their money efficiently to whom they want while also helping younger generations build wealth for decades to come, making even a smaller inheritance life-changing over time. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
