Across Generations Study

Even the most prepared individual who has a financial plan covering everything from newborn children to retirement will often neglect to consider end-of-life details. In fact, unless you experience the death of a loved one firsthand, you may find it difficult to address such a sensitive issue.

It's important to understand why people prefer to discuss positive events over negative ones. It’s human nature to want to discuss and look forward to significant life events such as weddings, the birth of a child, and retirement because they create a sense of excitement and arouse a passion for life. Hence, people are naturally eager to talk about these milestones and want to plan ahead to ensure they are successful and memorable.

On the other hand, very few people are comfortable discussing the inevitable end of their lives, regardless of their age. Doing so requires that an individual face and confront their mortality – an understandably frightening prospect. As such, many of us ignore and avoid such thoughts and conversations at all costs. Because of this, most people rarely, if ever, discuss such plans until a personal crisis occurs in their life.

Across Generations, a 2006 study by MainStay Investments, was conducted to measure the differences in investment behaviors and attitudes among generations. The objective was to identify, among affluent investors, the communication disconnects between generations when it comes to matters of financial planning and transfer of wealth. The findings of this study give financial advisors a better understanding of this dynamic topic and how to address these important conversations.

To read the entire news release, click here.