Managing Wealth in an Aging America

Managing Wealth in an Aging America

August 10, 2023

As America's population ages, the financial landscape evolves, too. This demographic shift, often dubbed the "silver tsunami", brings unique challenges and opportunities to wealth management. It's an unprecedented phenomenon requiring new strategies and understanding. 

If you are a Baby Boomer (born between 1946 to 1964), the retirement challenges that are just around the corner may seem a bit overwhelming. While it’s never too late to plan, the reality is you don’t have as much time to close the retirement preparedness gap.

At Agemy Financial Strategies, we strive to guide you through the complexities of managing wealth in an aging society. Today we will dive into strategies to help you navigate the challenges of increased life expectancy and shifting demographics. Here’s what you need to know.

What is the Silver Tsunami?

The term "silver tsunami" describes the noticeable increase in the average age of the American population. As the baby boomers reach retirement age, advancements in healthcare technology have extended their life expectancy beyond that of any previous generation. The U.S. Census Bureau projects that by 2034, the number of adults aged 65 and older will surpass the count of children under 18, reflecting the impact of this demographic shift.

This wave of upcoming retirees is reshaping the retirement planning landscape, presenting the task of ensuring that wealth endures for an extended duration. This momentous demographic shift carries profound implications for the wealth management sector. To effectively meet the needs of today's and tomorrow's retirees, planning for retirement must adapt to this new reality. It goes beyond simply having enough to retire; the focus is ensuring that retirement funds are sustainable, allowing individuals to fulfill their aspirations of leaving behind a meaningful legacy. Let's explore how wealth management can play a pivotal role in achieving these goals.

The Importance of Wealth Preservation

While older Americans are splurging on travel and dining out more than ever before, there needs to be more of a focus on preserving their wealth. According to Cerulli Associates, there’s one worry that stands out above the rest — the possibility they may outlive their assets. The wealth preservation approach focuses on implementing measures to shield it from erosion caused by inflation, market fluctuations, taxes, and unexpected circumstances.

Basically, while the growth of wealth means making more assets or wealth, wealth preservation means safeguarding that wealth so you don't lose that money.

There are a variety of investment strategies that are all aimed at securing your wealth for the long term. By adopting a diversified investment approach and incorporating alternative investments geared toward wealth preservation, individuals can effectively help mitigate the impact of market volatility and shield their assets from significant declines in value.

Planning for a Long Retirement

Generating a reliable and consistent income stream during retirement becomes a significant challenge in an aging society. From 1900 to 2020, the average life expectancy in the United States increased by over 30 years, thanks in part to various public health measures implemented during this period. With people living longer than before, traditional income sources like Social Security and pensions need to be supplemented or increased to ensure financial security throughout retirement. This could be via investments such as bonds and income-producing equities that can offer additional retirement income beyond traditional savings and income sources.

Working with financial advisors experienced in retirement income planning can immensely benefit retirees' nest eggs in the long run by helping you determine the most appropriate retirement income strategy for your needs. Additionally, the right financial advisors can look at tax-efficient strategies to maximize income and minimize tax burdens in retirement.

Estate Planning

Leaving a lasting financial legacy for children and grandchildren is a key priority for many retirees. As the baby boomer generation gracefully ages, they are now preparing to pass the torch to the next generation in more ways than one. One crucial aspect of this transition is the astounding $53 trillion in assets that boomers will be transferring to their heirs. In order to ensure a smooth and efficient wealth transfer, it is imperative to have a well-crafted estate plan. 

Effective estate management enables you to manage your affairs during your lifetime and control the distribution of your wealth after death. An effective estate strategy can spell out your healthcare wishes and ensure that they're carried out – even if you are unable to communicate. It can even designate someone to manage your financial affairs should you be unable to do so.

At Agemy, our Fiduciary Advisors can help you navigate the intricacies of estate planning. This includes crafting a comprehensive plan for the distribution of assets, minimizing tax liability, and identifying the right type of trust to suit your needs. This brings us to our final step in managing wealth that lasts...

Working With a Fiduciary Advisor

Working with a Fiduciary Advisor can be a transformative experience in securing a prosperous future. A Fiduciary Advisor is a professional who offers comprehensive financial guidance tailored to individual needs and aspirations, legally bound to put their client's best interests ahead of their own.

At Agemy Financial Strategies, we offer customized retirement planning services so our clients can get sound advice and gain knowledge in the following areas:

  • Investment Strategies
  • Tax Planning
  • Retirement Planning
  • Estate Planning
  • Risk Management
  • Succession planning and more.

At Agemy, our top goal is to empower clients to make informed decisions and confidently navigate the financial landscape's complexities. Our team takes the time to understand each client's individual circumstances and long-term objectives, helping to ensure that your plan aligns with your values and aspirations. 

With a knowledgeable Fiduciary Advisor by your side, you can embark on a well-informed journey toward financial success, allowing you to focus on what truly matters.

Final Thoughts

As the silver tsunami continues to sweep across the nation, we remain committed to providing the knowledge and direction you need to manage your wealth effectively, while confidently navigating your golden years. 

Agemy Financial Strategies is a Connecticut-based financial firm (with offices located in Denver, CO & Fort Lauderdale, FL.) that understands the challenges faced by an aging America. Our purpose is to educate retirees - whether that be planning for retirement, legacy planning, wealth management, or just holding your hand when it's time to leap into retirement.  with tailored solutions to help preserve and grow wealth, generate income, and plan for a lasting legacy.

´╗┐Contact us today to get started on this important journey.