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Why You Should Introduce Your Financial Advisor to Your Adult Children

Posted by Michael Kane on Apr 7, 2017 2:05:24 PM
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advisorIt can be difficult for people who have not been educated about money management to quickly learn how to do so responsibly after inheriting an estate.

You’ve probably heard stories about fortunes that were squandered due to reckless spending or uneducated decisions after the recipients came into large sums of money. In fact, a study conducted by Sweden’s Lund University in 2016 showed that the average inheritance is spent within the first five years after receipt.

The responsible passage of wealth from one generation to the next can be daunting for some families, and the task is made more difficult when adult children are not aware of the goals and wishes established for an estate. Too often, beneficiaries are introduced to complex financial situations upon the death of a loved one. They are expected to make rational financial decisions, sometimes with extraordinary long-term consequences, during a period of enormous stress and grief.

You can avoid placing your family in this precarious position by including them in your planning process and introducing them to your financial advisor.


There are many families in which a frank discussion about finances just doesn’t happen. The family dynamic can be complicated by personal relationships among siblings and between parents and children. Introducing your advisor as a professional and objective third party can make it easier to educate your kids about money and get them more actively involved in the process.

Your advisor is an independent voice who will help you make decisions that aren’t based on fleeting emotions, as well as introduce ways to talk about your financial plan and continue your legacy. It’s also reassuring for your family members to have met your advisor before they are forced to do so by an unexpected event.


It goes without saying that the sooner you involve your children in financial planning, the better. We advise clients to get the proper estate planning documents in order, and make sure their adult children are aware of these documents and what they cover.  Doing so will ensure that you’re not caught off guard in case of an emergency. We also encourage our clients to consider multi-generational planning, in which the care of aging parents, as well as the needs of children and grandchildren, are prioritized and weighed as part of your complete financial picture.

Preparing a future generation for the inheritance of your estate requires more effort and attention to detail than simply writing a will. Including a trusted financial advisor in your plans can help foster and preserve a positive relationship with your adult children around the assets you plan to leave for their benefit.

If you are currently an RAA client, we urge you to set up an appointment to introduce your adult children to your advisor.

If you would like to learn more about generational planning, request a call to discuss its benefits in relation to your specific financial situation.

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Disclaimer: This blog is intended for informational purposes only and should not be construed as individual investment advice. Actual recommendations are provided by RAA following consultation and are custom-tailored to each investor’s unique needs and circumstances. The information contained herein is from sources believed to be accurate and reliable. However, RAA accepts no legal responsibility for any errors or omissions. Investments in stocks, bonds, and mutual funds may increase or decrease in value. Past performance is no guarantee of future results. Any of the charts and graphs included in this blog are not recommendations for the purchase and sale of any security. 

Topics: Financial Planning