A recent study by Trust & Will highlighted that Gen Z is leading in setting up their estates and wills. Despite their young age, they are more curious and engaged in planning their financial futures than any other generation. Financial planner Jack Heintzelman from Boston Wealth Strategies notes, “They want to set themselves up for success and have flexibility in their lives, not just work until retirement.”
What Drives Their Early Planning?
Living through significant global events like 9/11, the 2008 financial crisis and the COVID-19 pandemic has influenced Gen Z’s mindset. These experiences have made them more pragmatic and forward-thinking. Their tech-savviness and access to vast amounts of information online also enable them to make informed financial decisions. They have witnessed economic instability and recognize the value of planning ahead.
How are Financial Advisors Responding?
Financial advisors are noticing this trend and adapting their strategies. In an article by Investment News, Paul Schatz of Heritage Capital mentions that younger clients are more approachable and agreeable regarding estate planning. Kelly Regan from Girard, a Univest Wealth Division, adds that the upcoming wealth transfer makes Gen Z a crucial demographic for advisors. Advisors are now focusing on educating and engaging Gen Z clients, offering tailored advice that resonates with their unique financial goals and values.
What Estate Planning Documents Do You Need?
Mandy Ritter, a senior wealth planning specialist at Captrust, emphasizes the importance of having key documents in place. These include a last will and testament, a financial durable power of attorney, a health care power of attorney, a living will and HIPAA authorization. These documents ensure that Gen Zers have control over their financial and medical decisions, even if they become incapacitated.
Digital Assets and Estate Planning
In today’s digital age, it’s essential to consider digital assets in estate planning. Advisors should ensure that clients have online accounts and digital presence plans. This includes providing executors with access to passwords and digital asset instructions. Managing digital legacies has become increasingly important as more of our lives and assets exist online.
Can Advisors Connect with Gen Z?
Advisors need to listen to their goals and visions to connect with Gen Z effectively. Jack Heintzelman advises,
“Don’t lead with products or solutions. Listen to what their goals are and how they feel about money. Meet them where they are, and they will take your advice seriously.”
Building trust and rapport with this generation requires understanding their unique perspectives and providing guidance that aligns with their values and long-term aspirations.
Ready to Secure Your Future?
Gen Z is setting an example by taking control of their financial futures early. If you want to ensure that your loved ones are protected, and your assets are managed according to your wishes, it’s time to start planning. Early estate planning can offer peace of mind and a sense of security, knowing you have a clear plan.
Key Takeaways
- Early Financial Security: Gen Zers are securing their financial futures at a young age, ensuring stability and control.
- Influence of Global Events: Exposure to significant events has made them more pragmatic and forward-thinking about financial planning.
- Tech-Savvy Decisions: Their comfort with technology allows them to effectively access and utilize financial planning tools.
- Entrepreneurial Spirit: Many Gen Zers are entrepreneurs, and estate planning helps protect their business interests.
- Comprehensive Planning: Including digital assets in their estate plans ensures complete and organized future management.
References: Investment News (Jan. 5, 2024) “The younger, the better: Gen Zers are ready for estate planning” and Trust & Will “Millennials and Estate Planning: Trust & Will’s Annual Report [Updated 2024]”
