PODCAST: August 16, 2025 – The Great Wealth Transfer
Planning, Protecting, and Preserving Your Inheritance
In the August 16, 2025 episode of The Roy Matlock, Jr. Money and Business Hour, Roy dives into the realities of inheritances and the massive wealth transfer taking place as Baby Boomers pass down trillions in assets. He stresses the importance of planning—both for those leaving inheritances and those receiving them. Roy explains how wills, trusts, buy-sell agreements, and careful financial management can prevent disputes, protect assets, and ensure generational wealth is preserved. He also cautions listeners not to depend on inheritances, but instead to build independent financial security through retirement planning, tax-smart investing, and disciplined money management.
Key Takeaways
The Great Wealth Transfer
-
Baby Boomers currently control 64% of U.S. wealth and are projected to pass down $68–$84 trillion in assets.
-
While the average inheritance is estimated at $320,000, wealth distribution is highly skewed—most families receive far less.
Don’t Depend on Inheritances
-
Rising health care costs and longevity (Roy’s mother is 102 and still doing well) mean money may be used up before passing down.
-
Independent financial planning is essential—build your own financial security instead of waiting on an inheritance.
Inheritance Planning for Families
-
Only 53% of wealthy families have wills or trusts in place, leaving assets vulnerable to disputes, lawsuits, and taxes.
-
Update beneficiaries regularly to avoid unintended transfers (e.g., ex-spouses receiving assets).
-
Trusts and spendthrift clauses can control how and when heirs receive money, preventing mismanagement.
Receiving an Inheritance
-
Don’t rush—avoid large purchases and take 90 days to gather documents, statements, and accounts.
-
Expect requests from others—use your financial advisor as a buffer to deflect money asks.
-
Work with a professional team: fiduciary financial advisor, estate attorney, and tax professional.
Retirement & Tax Strategies
-
Maximize retirement savings through 401(k)s, IRAs, Roth accounts, and SEP/Solo 401(k)s for the self-employed.
-
Tax efficiency is key: defer taxes where possible, and use Roth options for tax-free growth.
-
Don’t let money sit idle in bank accounts—consider tax-deferred investments.
Business Considerations
-
Small business owners need buy-sell agreements and key person insurance to protect operations and ownership transitions.
-
Without planning, heirs and surviving partners may face disputes, liquidity problems, or forced sales.
Building Wealth Independently
-
Financial independence requires sacrifice, discipline, and finding a career you enjoy.
-
Avoid “lifestyle creep” and blowing through windfalls (Roy shared the cautionary tale of teachers who wasted their inheritance on two new Corvettes).
-
Stick to a written plan with risk-appropriate allocation and long-term focus.
