Leaving a little something behind for the next generation.
This is a big topic – one with plenty of nuance. The issues at play here can range from being successful enough to generate assets that will exceed your own personal needs so that you can leave something for the next generation, to issues of legacy. Just what will you be remembered for?
It’s also as complicated an issue as it is varied. You’ve got one generation torn between whether they should be counting on an inheritance and should they be thinking that it’s their parents’ money and they should spend it. On the other side, the older generation is wondering about whether they have enough to cover their retirement spending and will there actually be anything left.
A survey by TD Bank offers a little insight. They found that about 40 per cent of Canadians either have received or expect an inheritance. The majority of those will receive cash while about half will get either property or a combination of cash and hard assets.
The bank’s other finding is that a big chunk of the recipients don’t receive professional advice on how to manage their new funds.