Father’s Day? Why bother?

By September 22, 2017Financial Planning

Do you remember the old joke about the waiter who asked the diner for a tip and got the reply, “be good to your mother”!

Well it turns out that it is a very good tip for children of the Baby Boomers.

Research has shown that worldwide there will be the greatest wealth transfer in history when the Baby Boomers become tired of staying young and finally shuffle off! The current estimate is $42 trillion and where will the bulk of it and up? In the hands of the mums!

It is quite a logical conclusion of course. Females continue to outlive males, meaning that the assets of married couples most likely end up in the hands of the female spouse.

This actually has important implications for investment managers in the longer term. For example, other studies have shown that women are more likely to take an interest in socially responsible investment which in turn could lead to an increase in this form of investment. This would place further pressure on those managers who choose to invest in tobacco companies for example. Given that the world of funds management is currently dominated by males, there is obviously the potential for huge change in coming years.

For the younger generation though, a more practical conclusion is that you can (continue to) ignore Dad, but maybe ring your Mum more often, instead of texting!