The so-called baby boomers are the wealthiest generation in American history an in the next few decades they will be transferring that wealth It’s called the great wealth transfer.
Now whether all that wealth gets transferred or not is how well boomers manage and save that money.
Hanging on to your money
The first thing is making sure you have money to pass on. You need to prepare for unforeseen circumstances that an wipe out that wealth. Healthcare is one circumstance that can wipe out your money before you know it. Diseases and nursing home costs can zap all your money in what seems like a heartbeat. That is why long-term healthcare insurance is not only a good idea, but necessary. The premiums may be expensive but very much worth it
We’ve talked about the importance of trusts are still advocate them. That’s why we suggest setting up a living trust, that way you can manage the majority of your assets and bypass probate and get your money to your beneficiaries with the least amount of hassle.
The new overhaul of the federal tax code pretty much excludes so-called death taxes as long as your estate is less than $11 million, but you sill need to check with your state to see what if any estate taxes are charged.