The New Things to Know About Building Generational Wealth Now

The Great Wealth Transfer Revolution 

We're living through an unprecedented moment in financial history. Baby Boomers are passing down their wealth to Gen X and Millennials, with Gen X set to inherit $14 trillion in the next decade alone, compared to Millennials' $8 trillion.² This massive transfer requires families to rethink traditional approaches to wealth building and preservation—exactly the kind of comprehensive planning we address through WHZ's holistic financial planning approach. 

What makes this transfer particularly significant is how different generations view money and wealth management. While Baby Boomers built wealth through traditional methods, younger generations are embracing more diverse strategies that reflect their unique experiences and values. 

Key Pillars of Generational Wealth Building 

1. Start Early, Start Smart: The average American made their first investment at 27 years old, with Gen Z starting earlier at 20.³ The compound effect of starting early cannot be overstated—with a 10% return on investment, you can turn $100,000 to $1.6M in 28 years.⁴ This is why our "Plan Well. Invest Well. Live Well.™" process emphasizes creating investment strategies tailored to your life stage and timeline.  

2. Debt Elimination Strategy: Think of debt as missed opportunity. Why pay interest when you could be using that cashflow for other financial goals? Prioritizing the elimination of consumer debt like credit cards, student loans, and car loans creates the foundation for wealth accumulation. Lowering debt can also improve your credit score and relieve financial stress,⁴ freeing up resources for strategic investments.  

3. Business Ownership and Equity: If you own a business, be aware of how it can provide a consistent stream of income, assets, and opportunities for future generations. Whether through starting your own venture or strategically investing in existing businesses, ownership stakes create wealth that compounds over generations. At WHZ, we work with a multitude of business owners to help them optimize compensation structures and succession planning so they can maximize generational wealth transfer.  

4. The Critical Role of Financial Education: Perhaps the most alarming statistic in wealth transfer is this: up to 70% of family wealth is lost by the second generation, and up to 90% of family wealth is lost by the third generation.⁵ The primary cause? Lack of financial education among heirs. 

Sixty percent of heirs feel unprepared to handle their inheritance,1 increasing the risk of financial mismanagement. This makes financial literacy education for the next generation as important as wealth accumulation itself. The greatest legacy you can leave behind is knowledge, empowering your heirs with the skills needed to manage and grow wealth responsibly. 

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Educating the Next Generation 

Building generational wealth requires intentional planning, sound financial management, an understanding of how to pass down assets while minimizing taxes, and educating future generations on how to manage and grow their inheritance.6 This involves: 

• Regular family financial meetings discussing goals and strategies 
• Age-appropriate money conversations with children 
• Involving heirs in investment decisions and estate planning discussions 
• Teaching the principles of compound interest and long-term thinking  

At WHZ, we facilitate family meetings and help clients involve the next generation in financial planning conversations, ensuring a smooth transition of both assets and financial wisdom. 

Modern Estate Planning Considerations 

Eighty-nine percent of high-net-worth firms cite family-focused services as a top growth strategy,² recognizing that successful wealth transfer requires comprehensive planning beyond simple asset distribution. Today's estate planning must account for digital assets, business valuations, and complex investment structures.  

Our fiduciary approach means we work alongside your team of professionals – CPAs, attorneys, and estate planners – to create integrated strategies that optimize tax efficiency while protecting your legacy. We help clients navigate everything from trust structures to business succession planning, ensuring that wealth transfers smoothly across generations. 

Taking Action: Your Next Steps 

Building generational wealth requires more than individual effort—it demands strategic planning and partnership. Whether you're in your "Balancing Act Years" juggling career growth and family responsibilities, or approaching your "Next Chapter Years" preparing for retirement, the principles remain the same: strategic planning, consistent action, and expert guidance. 

At WHZ Strategic Wealth Advisors, our comprehensive approach considers how to fit each of your financial goals into your ideal financial picture—protecting and continuing to build your wealth to leave a legacy for your loved ones and the causes you care about. 

Ready to start building your family's financial legacy? Download our free guide, Smart Strategies to Maximize Generational Wealth, from the Resources section of our website. And contact us for a complimentary discovery session at whzwealth.com or (860) 928-2341. Let us help you develop a strategic plan that will provide you with “Absolute Confidence. Unwavering Partnership. For Life.”

Authored by WHZ Associate Vice President, Wealth Advisor Jonathan Mathews. AI may have been used in the research and initial drafting of this piece. Investments are subject to risk, including the loss of principal. Past performance is no guarantee of future results. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. 697 Pomfret Street, Pomfret Center, CT 06259 and 392-A Merrow Road, Tolland, CT 06084, 860.928.2341. http://www.whzwealth.com. These materials are general in nature and do not address your specific situation. For your specific investment needs, please discuss your individual circumstances with your financial advisor. WHZ Strategic Wealth Advisors does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice. 

Sources  

1.  https://drlami.com/preparing-the-next-generation-for-wealth-transfer-key-trends-insights-for-2025/  
2. https://integrated-financial-group.com/resources/the-great-wealth-transfer-2025-building-multigenerational-relationships/  
3.  https://www.ipx1031.com/investing-statistics-by-generation/  
4. https://dfpi.ca.gov/news/insights/five-steps-to-building-generational-wealth/  
5. https://www.synchrony.com/blog/bank/how-to-create-generational-wealth  
6. https://www.fremontbank.com/resource-center/insights-and-learnings/2025/tips-for-building-generational-wealth