02 4926 1033

Level 8, 77-79 Hunter Street,
(Cnr Hunter & Bolton Streets)
Newcastle NSW 2300
PO BOX 104, Newcastle NSW 2300

Could you benefit from Intergenerational Financial Planning?

By RODNEY GRAY (BCom CA FFin CFP), CHRIS KOURMPATSOS (MAppFin BCom BEc FFin CFP) and MEGAN LITTLEWOOD (M.Fin Pl B.Com (FP & Acy)

For those who have retired, or are about to retire, the most important challenge is making sure they’re in a financial position to really enjoy retirement.

At Gordon and Gray we specialise in helping people prepare for and enjoy a worry-free retirement, through highly personalised investment and superannuation strategies and by helping our clients manage their income in retirement.

But once those building blocks are in place, our clients usually start thinking about how they can help the next generation of their family enjoy financial security – whether that’s helping them prepare for their retirement or educating their children, grandchildren or beneficiaries, ensuring their legacy is maintained. Gordon and Gray is a family-oriented financial planning practice and we regularly help our clients with what we call intergenerational financial planning – planning their finances across multiple generations.

We work with our clients and the next generation – the children or beneficiaries of our clients – in a range of ways.

For the parents

  • Typically we start with some crucial estate planning – like setting up Wills and Powers of Attorney through referral to our trusted legal partners.
  • One of the key issues for many of our clients is balancing the needs of parents and children. All parents want to be generous to their children. But sometimes that’s not realistic and generosity to their kids (say via a cash gift for a home) could come at a cost to the parents’ retirement lifestyle. It’s our job to help our clients manage those issues.
  • We spend a lot of time helping clients think through – and plan out – how they’re going to pass on wealth to their children or beneficiaries as fairly, efficiently and tax-effectively as possible.

For the children and beneficiaries

We work with the next generation – the children of our clients and other beneficiaries to:

  • Plan and prepare for their own retirement. That often involves maximising their nest egg through smart and effective super strategies, minimising tax and making complex superannuation rules work in their favour.
  • We also work with the next generation – the children and beneficiaries of our clients – once they’ve inherited funds. That advice is obviously different for each family but typically focuses on developing an investment strategy that balances risk and return and helps deliver their lifestyle needs and financial goals.
  • We can also help them develop investment and superannuation strategies that support and protect their children or beneficiaries down the track.

It’s about more than money

Over many years of working in this space we’ve found that successfully navigating these challenges on behalf of our clients calls on a whole range of financial planning experience and specific skills – whether it’s superannuation, retirement income planning, investment strategy, Centrelink or taxation.

But while financial planning strategies are crucial, our role is not just about money. Communication across the generations is key. Getting everyone in a family to be open and honest about their feelings, needs and goals is sometimes difficult and as financial planners we can help by guiding and facilitating those discussions.

According to the Productivity Commission, there’s $3.5 trillion to be passed down the generations over the next twenty years.

How to get started?

When it comes to Intergenerational Financial Planning, here are some of the things we would discuss with you.

  • your financial position – our discussion would centre, first, on your situation and goals and how you can lock in a comfortable and anxiety-free retirement.
  • we would then discuss how you can help your children and beneficiaries by passing on wealth
  • for many families, we then work with the children – the beneficiaries – to help them prepare for any wealth transfer. We cover inheritance, tax, investment strategy, their own Superannuation plans and more.

There are many ways clients can enjoy a comfortable and worry-free retirement and provide for those they love and care about. It’s a field of financial planning we’re expert at working in – and our clients appreciate the benefits and peace of mind it brings.

Want to talk about how you can enjoy a more comfortable retirement and help you family?