• Tags

  • Category: Children and Money

    Millennials and money: are they ready for the responsibility of wealth?

    A freak mid-November snow storm didn’t stop some twenty-five young adults from participating in Newport Private Wealth’s popular educational and networking forum, NextWave. The evening’s discussion was led by three of our young associates, providing both professional insight and their own personal experiences on the thought-provoking topic of managing finances with a significant other.

    Participants were asked to reflect on their own relationship with money by completing the phrase “today, money means _____ to me”. The millennials slowly began to share their own words: “safety”, “independence”, “future”, and then became more comfortable shouting out, “good wine”, “freedom” and even “stress.” The responses aligned with the results of a recent study ranking security, happiness, more responsibility, fun and stress as the top five answers among the general population according to a report by CNBC.

    Surprisingly, estate planning emerged as one of the most popular issues of the evening. Although it is rather ironic as these young couples are closer to the beginning of their lives; this group was genuinely concerned with protecting their families should an end-of-life event occur. This result was contrary to a survey conducted by Lawyers’ Professional Indemnity Co., which found that 88% of Canadians between the ages of 27 and 34 do not have a will. Perhaps this demonstrates that adult children of wealthy families actually understand their financial responsibilities.

    This event was Newport Private Wealth’s fifth in a series of educational and networking seminars that is a component of Newport’s NextWave program. Nextwave is an initiative to prepare young adults to better manage their wealth in the years ahead. It is a catalyst for discovery, a forum for learning and an opportunity for networking. It was borne out of a desire expressed by our clients that their children and grandchildren develop healthy money management habits and ultimately gain the experience needed to steward wealth, responsibly.

    The NextWave program is typically implemented through a multi-generational approach. A senior advisor at Newport Private Wealth works with parents (or grandparents); whereas, a younger associate provides guidance to adult children in the hope of building a long-term relationship. Managing wealth is about building trust and fostering relationships.  At Newport Private Wealth, we take a different perspective. Yours.

    How to talk to aging parents about their financial affairs

    father son 150x150 How to talk to aging parents about their financial affairsThere comes a point when adult children should be asking certain questions of their parents to ensure that their financial affairs are in order. As parents age, achieving financial independence for retirement is a primary objective and effective planning should start well ahead of time. Similarly, planning for the smooth succession of assets on death is critical to maintaining family harmony through a difficult time. Here is a list of questions adult children should be asking their parents, now, to better plan for retirement and beyond.
    [read more >>]

    A Young Adult’s Guide to Smart Spending

    NextWAVE 14May2014 SmartChoices Page 1 150x150 A Young Adult’s Guide to Smart SpendingWe recently held the spring session of our popular NextWave program, an educational and networking based initiative that helps the next generation of our client families become more informed, confident and financially independent.

    On an evening in May, a group of young adults in their 20s and 30s gathered in our boardroom to discuss ‘how to spend money wisely’. Although this topic might seem somewhat prosaic, it attracted close to 40 ‘millennials’ and inspired a spirited discussion. The following concepts were discussed as a guide for young adults to make smart spending decisions and more effectively build and manage wealth.

    Live a comfortable life, not a wasteful one. Many ‘Gen Y’ individuals have never experienced real financial hardship. The downside of this is that it can sometimes lead to overconfidence and overspending, rather than saving for ‘rainy days’ or to achieve financial independence.
    [read more >>]

    Are your adult children financially astute?

    Adult children of wealthy families are not prepared to handle wealth. That is one of the most common concerns among Newport Private Wealth’s hundreds of wealthy clients. Wealthy baby boomers are moving into their golden years, planning for the succession of assets and realizing their adult children don’t have the necessary skills to effectively manage wealth.

    A U.S. Trust study last year confirmed that very few high net worth individuals believe their children would be mature enough to handle wealth before the age of 25 and more than a quarter think they won’t be ready before the age of 40. (1)

    Why is this so? Financial planning, risk vs. return, asset allocation, budgeting and tax minimization aren’t concepts that are taught in our schools and universities. Discussing the family’s wealth isn’t something most families raise at the dinner table. Yet, ironically, parents want to ensure their children, as heirs, (1) don’t squander inherited wealth; and (2) don’t lose sight of family values because of it. [read more >>]

    Talking turkey about money and values

    137087961 150x150 Talking turkey about money and valuesFor many families, the Thanksgiving holiday is a wonderful time for creating and cultivating traditions. Stories are told – and retold (as I’m often accused), memories are created and, intentionally or unintentionally, a set of values gets handed down like the family silverware.

    Part of our job as wealth managers is to help families make conscious choices that will shape their relationship with money over multi-generations. The arrival of Thanksgiving weekend inspired us to revisit a whitepaper we had written in 2012 with input from Dr. Julie A. Morton, of Conscious Legacy Coaching, entitled: Net worth. Self worth. What values will you pass on? A practical guide to conscious choices that will shape your family’s relationship with money. Click this link to download the booklet or watch the video.

    Something to talk about over turkey dinner?

    Baby checklist

    BabyChecklist 150x150 Baby checklistI’m not sure if it is my age, gender or maybe it’s just my network but it seems like everywhere I turn babies are a topic of discussion. Many new parents are eager to share itty-bitty details about parenthood but less inclined to discuss how their new little addition has impacted their financial lives.

    As part of our NextWave program of financial education for young adults in their 20s and 30s, we have put together a checklist outlining some important financial elements that parents, or even grandparents, may wish to consider. We hope that this guide will help simplify the financial process, allowing parents to focus on the day-to-day duties of caring for their new baby.

    Baby Steps to Financial Peace of Mind: A New Parents’ Guide can be downloaded from our website by clicking this link.

    Newport Private Wealth’s NextWave program is designed to help young adults navigate financial issues faced throughout their 20s and 30s.

    Our second NextWave event a success!

    iStock 000003567788 blog 150x150 Our second NextWave event a success! Recently we held the second event in our NextWave series, an educational and networking forum designed for adult children of affluent families. Our goal is to provide information on financial matters and help them to better manage their wealth – all in a fun, informal atmosphere. Despite battling beautiful patio weather and game one of the Toronto Maple Leafs vs. Boston Bruins playoff series, the event attracted a full house of young adults keen to discuss renting vs. buying a home.

    What’s the right move for you? [read more >>]