Are you getting an inheritance – and what about your friends?

One of the big financial stories over the next 20 years will be the transfer of wealth from baby boomers to their Gen X and millennial children.

The total amount of wealth in play has been estimated at $1-trillion. Are you getting any? Let me know by filling out the Carrick on Money Wealth Transfer Survey that follows below. This survey is aimed at Gen Xers, millennials and Gen Zs who have living parents.

Expect to hear from people in the financial industry, lawyers and accountants about the coming wealth transfer. A chunk of the wealth being transferred will go to them through fees charged for advice. Without proper guidance, there will be family arguments and bad feelings all around. Windfalls could be wasted, and opportunities lost.

Another important aspect of the wealth transfer is its effect on wealth inequality. Money from well-off parents could be used for investments or to start businesses. Also, to pay off mortgages and other debts, raise lifestyles into a higher bracket and produce more comfortable retirements. Huge advantages flow to people who have money coming in from their parents.

The purpose of the wealth transfer survey is to get a sense of how many people have inheritance money coming, how much is involved and the purposes it might used for. There’s an opportunity to have your say if you don’t see an inheritance in your future. Stay tuned for the survey results coming up in the weeks ahead.

The 2024 Globe and Mail ETF Buyer’s Guide

All six instalments of the 2024 ETF guide have now been published. Here’s a link to the complete series.

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Rob’s personal finance reading list

The spending habits of Gen Alpha

A look at how the young kids of Gen Alpha, born starting in 2010, regard money. One reality for this generation is how easy it is for them to spend money using various mobile phone apps. Gen Alphas are also highly brand-conscious – advertisers regard them as a stealth way to influence parents on what to buy.

How does Canada’s biggest online broker stack up?

A review of TD Direct Investing, which has long dominated the business of serving DIY investors. TD topped my 2024 Globe and Mail Digital Broker ranking.

I’ll take cash, thanks

A 12-pack of credit cards to consider if you prefer cashback from your credit card as opposed to travel rewards

Pain relief for higher mortgage payments

A look at the benefits – and cost – of extending your amortization to ease the cost of renewing a mortgage at higher interest rates. The Bank of Canada has warned about a steep rise in payments as home owners renew mortgages over the coming years.

Ask Rob

Q: My wife and I retired three years ago and are now living off our registered retirement income fund investments. We are now in the unfortunate position of having drained our cash tranche and now must sell investments each month to maintain our lifestyle. This has become a very stressful situation in deciding which stocks to sell. I now believe a better option would be to convert all our stock investments to perhaps one or two dividend ETFs. I am interested in your views on this approach.

A: The way things have shaken out with your retirement savings suggests some professional financial planning would be helpful. You could discuss how best to use your retirement investments to produce tax-efficient retirement income while also drawing down on your savings. Dividend ETFs, if you choose to go ahead with that, were covered in my latest ETF Buyer’s Guide.

Do you have a question for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.

Tools and guides

Can using overdraft on your chequing account hurt your credit score? Answers here

In the social sphere

Social Media: Check out Zillowgonewild on Instagram – weird properties for sale across the United States, including a missile silo available for US$750,000

Watch: A TikTok video detailing a $17 grocery haul that includes two packages of Ontario-grown strawberries. The point is to compare the value to the cost of shopping at a big grocery store chain, specifically Loblaw.

Money-Free Zone: U.K. jazz pianist Greg Foat has a new live album out and after listening to it I went back to this 2019 song called Of My Hands. There’s a vocal segment to start and then the song settles into a groove I could listen to for a lot longer than the seven minutes it runs.

More PF from The Globe

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