America’s Wealth Tsunami Is Here—Will You Catch It or Get Crushed?

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Baby boomers aren’t sprinting to the endzone – they’re strolling there, and they’re carrying roughly $84 trillion in assets with them.

Because today’s retirees are healthier, living longer and spending more slowly, the fabled “Great Wealth Transfer” will likely unfold over 25–30 years, not ten. That leisurely pace can lull advisors into complacency – until they remember that money is already leaking out of their books at a half-trillion dollars a year.

The first wave of this slow-moving tsunami is the transfer of wealth to the next spouse - overwhelmingly women. Most advisors lose those assets and revenue opportunities because they haven't established those relationship over time. Then... it's too late. Within a year, that client is with a different advisor.

The Numbers Screaming “Go!”

  • $500 billion is already inherited every year – and that figure is forecast to top $1 trillion within a decade.
  • >70% of surviving spouse fire their advisor within 12 months.
  • >70 % of heirs fire their parents’ advisor within 12 months of inheriting. cerulli.com
  • 91 % of advisors admit they fear losing assets during the transfer – yet one in four still has no inter-generational strategy. platform.scottishwidows.co.uk
  • 87% of heirs say they will higer an advior BUT 90% will leave parents' advisor.
  • 89% of heir had never met their advisor.

The Takeaway

Relationship = Losing the Spouse and the Heir

What’s in It for You?

  • Asset Retention & Organic Growth Engage spouses and adult children early, and you lock in recurring fees on their own portfolios – well before the inheritance check clears.
  • Practice Valuation Buyers pay higher multiples for firms that show low post-death attrition and multi-generational relationships. Translation: every heir you bring onto the service calendar today fattens tomorrow’s exit price.
  • Competitive Moat The first advisor to solve the family’s “Who do we call?” problem usually becomes the only advisor the heirs need. Wait, and your competitors will plant their flag first.
  • Referral Flywheel Younger clients – especially Gen X and millennials – share advisors the way they share Airbnbs. Nail the relationship and you inherit their networks, too.

Why Clients Actually Care

When you frame the discussion around their fears and aspirations – not just basis step-ups – clients lean in.

Client Worries

  1. “Will my kids fight or squander it? Solution: Gradual financial education, clear governance docs, and (possibly) family meeting.
  2. Tax & Market Uncertanty. Solution: Multi-year Roth conversions, step-up planning, and strategic gifting lower lifetime tax drag.
  3. Longevity & Health-Care Costs Solution: Cash-flow projections and long-term-care funding reassure parents they won’t jeopardize their own lifestyle by helping the next generation.
  4. Legacy & Impact. Solution: Donor-advised funds, charitable trusts, and values-based investment sleeves let clients see their money doing good while they’re alive.

Action Steps to Consider

  1. Map the Family Tree Add spouse and heir contact fields to your CRM and tag which relationships are active.
  2. Host a “100-Year Family” Meeting One agenda, three generations, zero product pitches. The goal is shared vision and clarity on roles.
  3. Create a Digital Vault Store wills, powers of attorney, tax returns, and a plain-language letter of intent. Give heirs read-only access so they stop feeling in the dark.
  4. Offer Heir-Focused Micro-Plans College savings, first-home down-payments, equity-comp liquidation plans – small engagements that build trust long before the big check arrives.
  5. Layer in Purpose-Driven Portfolios Younger investors tilt toward ESG and thematic strategies. A dedicated sleeve shows you speak their investment language.
  6. Schedule Annual Joint Reviews Even a 20-minute Zoom check-in with heirs keeps your face familiar and your advice top-of-mind.

The Clock Is Ticking – Just Quietly

Because this transfer is diffuse and prolonged, you won’t get a single headline moment warning you that assets are about to bolt. Instead, every year a couple of clients pass away, a few more make living gifts, and the capital trickles out – unless you’ve already cemented the relationship with the next generation.

So block two hours this week to sketch your inter-generational playbook. Decide which fifteen client families you’ll approach first, craft the invitation to a family meeting, and delegate the CRM updates. Do it now – while the tsunami is still far offshore – because once the water reaches your ankles, it’s already too late to outrun the wave.

The Bottom Line

The Great Wealth Transfer isn’t a distant thunderclap – it’s a slow moving tsunami that has begun. Advisors who plant family-wide relationships now will harvest compounding loyalty, revenue, and enterprise value for the next 30 years. Those who wait may find the assets – and the heirs – have moved on without them.

Related: The Next Wave: Key Trends Reshaping Financial Advising and Practice Growth with Ric Edelman