Fidelity Rolls Out Generational Wealth Transfer Program for FAs – Financial Advisor IQ

Fidelity Institutional has launched a program aimed at helping advisors with their clients’ generational wealth transfer.

The Decade of Generational Wealth program outlines eight strategic imperatives for advisors to help establish successful family wealth transitions and to ensure the future success of their business.

The Fidelity Center for Family Engagement developed the program based on years of engagements with advisors and families across all levels of wealth.

The program provides advisors with a plan that has eight strategic imperatives:

  1. Navigating change of control with the primary decision maker
  2. Facilitating transparency and family engagement around planning
  3. Empowering women as head of households and as investors
  4. Developing multigenerational dexterity for a socially diverse family
  5. Engaging the modern family and complex planning considerations
  6. Expanding the financial, emotional and familial health conversations
  7. Stepping into the multigenerational life moments with families
  8. Planning proactively for the boomer succession in your business and the industry

Around 58% of millennial and Generation Z investors anticipate inheriting assets in the future, yet just 39% of advisors said that they have been successful in working through a wealth transition with the younger generation, according to Fidelity research. The findings are based on a survey of 1,974 investors, including 773 millionaires, conducted between May 15 and June 7, according to Fidelity.

“Advisors who aren’t proactively building capabilities to address the strategic imperatives and initiate conversations — that are sometimes emotional and difficult — may be in danger of losing connection with clients and their families,” Tobias Donath, senior vice president at the Fidelity Center for Family Engagement, said in a statement. “Advisors need to work across the generations to address these challenges.”

More than 70% of heirs are likely to fire or change advisors after receiving their inheritance, according to research from Cerulli Associates, making connecting with heirs an imperative for advisors.

Fidelity Institutional is the Fidelity Investments division that provides technology, solutions and insights to wealth management firms and institutions.

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