Alfred Liu speaks to Citywealth on NextGens and bridging the generation gap
Private Client Partner, Alfred Liu, has provided his insight to Citywealth on how families and their advisors can bridge the gap between generations to transfer wealth successfully and harmoniously.
In the article, ‘The nexus of NextGen’, industry professionals discuss the key issues, and potential solutions, for connecting with the next generation of UHNW individuals. Alfred’s key takeaways are as follows:
- Generational Differences:
- Advisers working with multigenerational families must be aware of deeply ingrained generational differences.
- These differences can lead to intrafamily disputes and disharmony, risking the fragmentation and dissipation of family wealth.
- Advisers should help families establish common ground, identify potential generational differences, and develop constructive ways to bridge the divide.
- Dynamic Wealth Transfer:
- The “Big Wealth Transfer” should not be treated as a one-off event.
- Viewing it as a process rather than an isolated event prevents complacency.
- Strategies and frameworks must adapt to macro issues, geopolitical changes, and evolving circumstances.
- The planning for wealth transfer should be dynamic, regularly reviewed, and capable of evolution.
- Next Gen Considerations:
- Next Gens (younger generations) have distinct experiences and relationships with wealth compared to their parents or grandparents.
- They are often more internationally mobile, exposed to diverse cultures, and seek independence.
- Advisers must be sensitive to these differences and support families in avoiding disputes.
Alfred reminds readers that wealth transfer is a process not a single event, and understanding the psychology of Next Gens is critical during intergenerational transitions.