The views expressed are those of the speaker and are subject to change at any time These views do not necessarily reflect the views of others in the MFS organization 2018 MFS Investment Management 111 Huntington Avenue Boston MA 02199 ID: 724577
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MFS does not provide legal, tax or accounting advice. Clients of MFS should obtain their own independent tax and legal advice based on their particular circumstances. The views expressed are those of the speaker and are subject to change at any time. These views do not necessarily reflect the views of others in the MFS organization.MFS Fund Distributors, Inc., Boston, MA
NameTitle
FAMILY WEALTH MANAGEMENT:GENERATIONAL WEALTH CONVERSATIONSHelping families successfully transfer wealth
29790.8Slide2
Understand: why transfers failPlan: to avoid mistakes
Communicate: to engage and educate
GENERATIONAL WEALTH CONVERSATIONSSlide3
Parents
Don't have a planDon't communicate the plan
HeirsFight each otherFight the planDon't get/accept advice
UNDERSTAND: WHY TRANSFERS FAILSlide4
UNDERSTAND: WHY TRANSFERS FAIL
Source:
MFS Heritage Planning Survey, October
2018. See page 15 for methodology.
Comfortable discussing with your adult children
(Extremely/Very Comfortable) Slide5
UNDERSTAND: WHY TRANSFERS FAIL
No/Not Sure
69%
Yes
31%
Source:
MFS Heritage Planning Survey, October
2018,
See page 15 for methodology.
Yes
No/Not Sure
Yes
No/Not Sure
Have discussed family wealth management
with advisor
(Base: Advised)
Not
very/not
at all helpful
Somewhat helpful
Extremely / very
helpful
Helpfulness of family wealth management discussion with advisor
(
Base: Advised)
Particularly Gen
Y (76%)
Yes
No/Not SureSlide6
UNDERSTAND: WHY TRANSFERS FAIL
Source:
MFS Heritage Planning Survey, October 2018, See page 15 for methodology.
What Investors Will Do With Any
Inheritance Money
Why Investors Have/Expect to Move Inheritance Money to a Different Firm
Have advisor relationship elsewhere I am happy with
38%
Better investment opportunity elsewhere
31%
Desire to minimize firms I do business with
24%
Geographic distance (firm/advisor not close by)
23%
Not a significant enough balance to justify keeping it there
17%
Need more help than would be available
10%
Dislike firm/advisor it was with
9%
Prefer to work with an advisor my own age
6%Slide7
UNDERSTAND: WHY TRANSFERS FAIL
Heirs and the family cottageSlide8
PLAN: TO AVOID MISTAKES
Create a family "map"
Identify legacy needs for eachSlide9
PLAN: TO AVOID MISTAKESSlide10
Engage family members early and often: Account openings
Gifting discussionsJoint meetings with an investment professionalEducate for tomorrow:
Who: to talk to when the time comesHow: to avoid mistakesWhat and where: documents and accounts
COMMUNICATE: ENGAGE AND EDUCATESlide11
COMMUNICATE: ENGAGE AND EDUCATE
Author not affiliated with MFS Investment Management or any of its subsidiaries.Slide12
Authors not affiliated with MFS Investment Management or any of its subsidiaries.
COMMUNICATE: ENGAGE AND EDUCATE
.Slide13
COMMUNICATE: ENGAGE AND EDUCATE
Outline a giving planFunding areas
- Cultural, Education, Social Programs, Environment etc.Local vs. GlobalOrganization
Amount and Percentage
Legacy wishesSlide14
FAMILY WEALTH MANAGEMENTGENERATIONAL WEALTH CONVERSATIONS
Successfully transfer wealth:
Understand: why transfers failPlan: to avoid mistakes
Communicate: to engage and educateSlide15
Survey Methodology
: MFS, through Research Now, an independent research firm, sponsored an online survey of 1,500 individual investors. MFS was not identified as the sponsor of the survey, which was fielded in October 2018. To qualify, respondents had to have a household income of at least $50,000, be invested in mutual funds, and make or share in financial decisions for their household.
Gen Y refers to investors ages 23 to 41, Gen X refers to investors ages 42 to 53, Boomer refers to investors ages 54 to 72, and Silent generation refers to investors 73+. These ages are based on calendar year 2018.
Unless otherwise indicated, logos and product and service names are trademarks of MFS® and its affiliates and may be registered in certain countries.
Issued in the
United States
by MFS Institutional Advisors, Inc. (“MFSI”) and MFS Investment Management. Issued in
Latin America
by MFS International Ltd.
Questions
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