Navigating the Great Wealth Transfer: Guidance for the Sandwich Generation
The largest transfer of wealth in history is underway. Over the next two decades, an estimated 124 trillion dollars will pass from baby boomers to younger generations—and nearly 100 trillion of it will go to women. For Generation X, often called the “sandwich generation,” this shift brings both opportunity and complexity.
On a recent episode of Dime After Dime: A Moran Wealth Management® Podcast, host Tony Stich sat down with Michael Mongin, Senior Wealth Advisor at Moran Wealth Management®, to discuss the challenges and strategies of intergenerational wealth transfer.
The Unique Challenges Facing Gen X
Gen Xers are balancing financial priorities on three fronts:
- Supporting aging parents, who may not have fully prepared for long-term care needs.
- Guiding adult children who are still establishing independence.
- Managing their own retirement and estate planning.
This “middle seat” often creates emotional and financial stress. As Mongin shared, “Trying to balance all three of those is frankly impossible. Having advisors to help you sort through what’s most important is the most effective way to get started.”
Building a Vision First
Rather than focusing on tax rules or technical details, Mongin encourages families to start with a clear vision: What do you want your wealth to accomplish? Advisors, attorneys, and CPAs can then craft strategies to align with those goals.
This vision also helps determine how and when to pass wealth. Should you give during your lifetime, or leave assets as inheritance later? The answer depends on your own financial security, your values, and how you want your legacy to be experienced by your heirs.
Tools for Transferring Wealth
The discussion highlighted practical tools that can help families navigate this transition:
- Trusts – Not just for the ultra-wealthy. A properly drafted and funded trust avoids probate, streamlines asset transfer, and keeps family matters private.
- Estate Planning – Ensures assets are distributed according to your wishes, while managing tax implications and protecting heirs.
- 529 Plans – Once considered limited, these education savings accounts now offer broader flexibility, including the ability to transfer funds between family members or even convert unused funds into a Roth IRA for the beneficiary.
Each tool requires thoughtful planning and can make a difference in preserving and passing on wealth.
Preparing for Elder Care
One of the most emotionally charged aspects of wealth transfer is planning for elder care. Families often struggle with balancing care responsibilities among siblings or deciding whether to use retirement funds, insurance, or personal savings. As Mongin emphasized, having these conversations early—and including advisors—helps families align expectations and avoid conflict.
A Lesson from Experience
Looking back, Mongin shared one piece of advice he wishes he’d followed earlier: contributing to a Roth IRA as soon as possible. For younger investors today, even small annual contributions can grow significantly over decades, thanks to the power of compounding and the tax-free growth Roth accounts provide.
Final Thoughts
The great wealth transfer represents both an opportunity and a challenge. For Gen X and beyond, the key is clarity of vision and proactive planning. By leaning on trusted advisors and making use of the right tools, families can navigate the complexity, honor their values, and work toward preserving their legacies.
To hear the full discussion, check out the latest episode of the Dime After Dime Podcast on our YouTube channel.
For more helpful resources, visit our Educational Videos library.
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