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It’s time for families to get serious about the upcoming flood of retirement and asset transfers. Let’s start with something simple: having a conversation.
Domain Money CEO Adam Dell told Yahoo Finance Executive Editor Brian Sozzi on Yahoo Finance’s Open Bid podcast that people are “too busy focusing on the present” (video above, listen below). please). “It’s easy to forget that the future is coming. You’d better be prepared.”
Thinking about how to live after retirement may not be the easiest thing to do in your busy daily life, but many baby boomers will soon be faced with the reality. According to the Census Bureau, one in five Americans is expected to reach retirement age by 2030.
This age group will be facing that milestone for the first time without the cushion of full Social Security benefits or defined benefit pensions. In addition to a lack of savings, more than half of the 30.4 million Americans who will turn 65 between 2024 and 2030 will have less than $250,000 in assets, highlighting the need to get serious about retirement. It has become.
“People don’t talk about money enough,” Dell says. “Within families, this is something people need to learn to have conversations about your parents’ financial situation and long-term well-being trends, and how that impacts your life when they pass away.”
Families also need to urgently discuss the $84 trillion wealth transfer from boomers to their descendants.
To avoid potential missteps and confusion, Dell suggests being upfront about your financial situation. Taking steps now, such as communicating whether there is a will, who the executor is, and where assets are kept, will help in the long run.
Another potential “big mistake” is the tax implications.
Dell said part of the conversation should also be “understanding what taxes will be levied on the inherited property and how that will affect the assets after the tax liability ends.”
More and more retirees are choosing to spend more money on themselves, and families need to be transparent with each other. This will ensure that you are on the same page about what is expected of you and what is reasonable and realistic to try to achieve. ”
Dell, whose brother Michael founded Dell Technologies (DELL), believes Domain Money’s mission is to help consumers have access to high-quality information, helping them plan for retirement and other transitions. This is important when doing so.
“You need a realistic plan and small incremental steps towards that plan,” he said. “Especially as we get older and our cognitive abilities decline, having the conversation earlier rather than later is a much better approach.”
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For more retirement tips, listen to Yahoo Finance’s Decoding Retirement podcast hosted by Robert Powell.
Three times a week, Yahoo Finance Executive Editor Brian Sozzi has insightful conversations and chats with some of the biggest names in business and markets on Opening Bid. Find more episodes on our video hub or watch on your favorite streaming service.
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