TORONTO, Aug. 14, 2018 /CNW/ - Canadian Millennials are
rolling the dice and not seeking financial help or professional
advice when they receive an inheritance, according to a new survey
from TD Bank. The survey uncovered that while 83 per cent of
Millennials who have received, or who anticipate receiving, an
inheritance feel confident in their ability to manage their
inheritance, nearly half (46 per cent) of those who have already
inherited wish they had sought professional advice on how to manage
their new-found wealth.
With the largest ever transfer of wealth set to occur in the
coming yearsi, the stakes have never been
higher for Canadians who receive an inheritance – Millennial or
not. Correspondingly, seeking advice on managing this wealth
windfall is more important than ever.
"Managing an inheritance can be incredibly overwhelming,
especially for those Millennials who are typically not as
well-versed in managing larger sums of money or assets. When
receiving an inheritance, it is all too easy to become overwhelmed
and make decisions you later regret," said Jeet Dhillon, Vice President and Senior
Portfolio Manager, TD Wealth. "This is particularly true in cases
where a large inheritance makes you a high-net-worth individual
overnight, as the sums involved tend to be bigger and the
consequences of the choices you make are magnified."
The survey also showed that four in ten (41 per cent) Canadian
Millennials expect to receive an inheritance or have already
received one. Of these, six in ten (60 per cent) anticipate they
will receive cash, while just over half (53 per cent) foresee
inheriting a property or the proceeds from the sale of one.
"The value of your inheritance may be greater than anticipated,
and once received, it can be difficult in the moment to make
strategic decisions that will benefit you and your family for the
long term. It's important to pause, determine what your short and
long-term financial goals are, and develop a comprehensive plan
with your advisor that will help you meet those goals before taking
on any new financial commitments," continued Dhillon.
TD offers the following tips and advice to Millennials and all
those looking to make the most of their inheritance:
- Tackle Financial Fundamentals First
-
- Regardless of the value of your inheritance, prioritizing
spending can help maximize its impact when it comes to meeting your
long-term goals. Rather than using your windfall for luxuries,
consider alleviating your existing financial commitments and plan
for the future. This may free up more of the money you earn for the
things you enjoy.
- Plan Your Own Estate
-
- Receiving an inheritance can often be a wake-up call to write a
will of your own – something many of us put off. In cases where the
inheritance is more than expected, working with an estate planner
can help you consider your options. Creating an estate plan may
also allow you to minimize costs and taxes, and help you to
maximize your wealth.
- Inheritance shouldn't be Taboo
-
- Only 1 in 10 Canadians (9 per cent) say they discussed how they
will put their inheritance to use with the person they inherited
from. As planning is impossible if you don't know what to expect,
prompting a frank conversation about your legacy with loved ones is
key.
- Work with a Trusted Advisor
-
- An advisor can help you meet your financial goals by providing
a holistic picture of your finances by considering a range of
factors, such as the implications of tax planning and the potential
return on any investments.
About the TD Survey
TD Bank Group commissioned
Environics Research Group to conduct a custom survey of 6,021
Canadians aged 18 and older. Responses were collected between February 20 and March 1, 2018. This
report includes questions asked to 3,028 Canadians, of which 687
are Millennials, who have received or anticipate receiving an
inheritance in the future.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are
collectively known as TD Bank Group ("TD"). TD is the sixth largest
bank in North America by branches
and serves more than 25 million customers in three key businesses
operating in a number of locations in financial centres around the
globe: Canadian Retail, including TD Canada Trust, TD Auto Finance
Canada, TD Wealth (Canada), TD
Direct Investing, and TD Insurance; U.S. Retail, including TD Bank,
America's Most Convenient Bank®, TD Auto Finance U.S., TD Wealth
(U.S.), and an investment in TD Ameritrade; and Wholesale Banking,
including TD Securities. TD also ranks among the world's leading
online financial services firms, with approximately 12 million
active online and mobile customers. TD had $1.3 trillion in assets on April 30, 2018. The Toronto-Dominion Bank trades
under the symbol "TD" on the Toronto and New York Stock
Exchanges.
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https://www.accenture.com/ca-en/~/media/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Industries_5/Accenture-CM-AWAMS-Wealth-Transfer-Final-June2012-Web-Version.pdf
SOURCE TD Bank Group