Experts disagree on the exact valuation of the cash and assets that Baby Boomers will leave to their heirs over the next two decades.  

Some analysts say the so-called “great wealth transfer” — in which Boomers bestow a lifetime of earnings and investments to their Gen X, Millennial, Gen Y and Gen Alpha beneficiaries — could be worth $84 trillion. Others say the final tally could be as high as $90 trillion. Either way, the distribution will likely make their heirs the wealthiest Americans in history. One leading bank says the total inheritance will equal “2.5 times the total amount of U.S. national debt.”  

This isn’t news to the financial services industry, which has spent years marketing their services to Boomers to convince them that large banks, investment houses and insurance companies are the ideal partners to serve as custodians and advisors in this unprecedented transfer of wealth. 

However, family offices — smaller firms that typically serve high-net-worth individuals and families — may be best qualified to guide Boomer investors through the intricate and ever-changing financial maze that awaits them.  

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Why family offices?

“There are many reasons family offices are ideal advisors to Baby Boomers seeking guidance in transferring their assets to their younger heirs,” says Susan Lindeque, CEO of Avestix Group, an alternative investment firm based in Miami. “For starters, younger investors have very different priorities and values than their Boomer parents and grandparents. And, unlike big investment firms, family offices are agile enough to bridge those generational differences.”   

For instance, Lindeque says, Boomers typically favor stocks and bonds, while many post-Boomer investors are “excited about transformative investment opportunities in blockchain, cryptocurrencies, decentralized finance (DeFI), artificial intelligence, quantum computing and impact investing.”  

Where Boomers look at cutting-edge investments like these “with varying degrees of skepticism,” she says, younger investors “view them as not-yet-fully-realized opportunities for growth, innovation and democratized access.”

The problem, Lindeque says, is that many large financial services organizations are big and bogged down in legacy technologies and traditional business models that lag behind the modern preferences and priorities of the next-gen investor class. 

“But almost half of family offices are already investing in alternative assets like crypto and blockchain projects or venture capital firms that support startups leveraging those technologies,” Lindeque says.  

Because many family offices — which, globally, are on track to manage $9.5 trillion in assets on behalf of the clients in the next five years — already have hands-on experience investing in newer technologies, they are better equipped to meet the needs of post-Boomer investors, she says. 

To help bridge the gap between the preferences and priorities of older and younger investors, Lindeque recently launched AVESTIX INTELL,™ a collaborative platform created specifically to facilitate a seamless transition of wealth across generations. 

“AVESTIX INTELL will help foster collaboration between stakeholders —  investors, influencers, innovators, and family office executives — by empowering them to network, share ideas, and flourish in a landscape of rapid transformation and unparalleled opportunity.”  The new platform cultivates collaboration and facilitates idea exchange, ensuring that new opportunities can thrive in an ever-evolving landscape.

She adds that the new platform is membership-based and members are invited to participate in industry summits, workshops, podcasts, and other get-togethers where they can discuss advancements in AI, blockchain, cybersecurity, and more. Members can also receive complimentary audits to assess their cybersecurity vulnerabilities, AI readiness, and investment gaps. 

“INTELL isn’t just about adapting to change — it’s about helping to spearhead it,” says Lindeque. “By serving as a conduit between older and younger investors, the platform can help encourage a community of changemakers to redefine wealth management for the next generation of leaders.”

Written in partnership with Tom White