2020 Wealth Planning Outlook

Predictable and unpredictable factors that will shape your wealth plan in 2020

U.S. presidential and congressional elections will unfold against a backdrop of equally impactful societal changes – including rising healthcare costs, increasingly global citizenship and mass wealth transfer.

Election 2020: Understand the impact

The U.S. presidential and congressional candidates' tax and social policies suggest a range of implications for your wealth plan.

Spectrum of possibility from progressive to conservative

Key Takeaway

Take full advantage of the current gift and estate tax exclusion amounts.

Prepare for business transfers and sales

An aging Baby Boomer population in tandem with demographically surging Millennials is likely to result in the widespread transfer or sale of businesses.

Projected population by generation

Source: Pew Research Center tabulations of U.S. Census Bureau population projections released December 2014 and 2016 population estimates.

Bridge the generational divide

Divergent attitudes of Baby Boomers and Millennials make managing wealth more complicated.

Generalizations about generations

Source: Pew Research Center, February 2019; “Millennial life: How young adulthood today compares with prior generations”
Key Takeaway

Wealth transfer between these distinct generations requires purposeful engagement to cultivate shared values.

Position your family for greater mobility

Families are increasingly global relative to where they live, where they invest and the philanthropic causes to which they give.

Home away from home country

Percent of Ultra High Net Worth Individuals who own a second home in a different country
Source: Knight Frank, January 2019; “The Wealth Report”
Key Takeaway

Global families require additional planning for cross-border trust, philanthropy, tax and information security laws.

Navigate healthcare complexities across longer lifespans

As life expectancy increases, healthcare costs escalate and government funding for medical care declines.

Medicare could be partially insolvent by 2026

Source: The Boards of Trustees, Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds, April 2019; “2019 Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds”; Insured Retirement Institute, April 2019; “Boomer Expectations for Retirement 2019”
Key Takeaway

Traditional insurance and financial plans may need to be modified to meet the cost of care.

Cautiously take advantage of technological advancements

Recent legislation allowing for e-wills and the administration of digital assets enables efficiency, but privacy risks persist.

7 in 10 Americans feel their personal information is less secure than it was five years ago

Source: Pew Research, November 2019; “Key Takeaways on Americans’ Views About Privacy, Surveillance and Data-Sharing”

2020 Wealth Planning Outlook

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