By Craig Keary, CEO of Selfwealth

In the second chapter of this six-part series with the Australian Shareholders Association, Craig Keary, CEO of Selfwealth, unpacks the intergenerational wealth shift and why it matters to all of us. To do this, a new framework is being introduced: ‘FAMILY.’ Within this simple acronym are the six key elements considered crucial to a successful intergenerational wealth transfer.

F:          Financial literacy: Educating younger generation on managing and growing wealth.

A:          Assets management: Structuring and safeguarding assets for future generations.

M:         Multigenerational planning: Addressing the needs and goals of family members.

I:            Inheritance strategy: Clear outline for equitable and tax-efficient distribution.

L:           Legacy preservation: Upholding family values and long-term financial stability.

Y:          Year-round collaboration: Continuous engagement with financial advisers.

In the previous article we began with the first letter of this FAMILY framework, exploring financial literacy. Now in this chapter, we turn to the topic of Asset management.

When looking at the immense intergenerational wealth transfer in motion, asset management stands out as a core consideration requiring close attention. To facilitate this, the relationship between a family and their financial adviser is as critical as ever.

Asset management and its significance to wealth preservation

Financial asset management refers to the strategic oversight, allocation and optimisation of an individual’s or family’s investment portfolio, savings, and other financial resources. This process might include managing equities, property, cash, superannuation, and alternative investments to achieve long-term financial goals.

It often involves:

• Superannuation planning, including SMSFs where applicable.
• Investment diversification – balancing domestic and international securities, ETFs, managed funds, property.
• Tax efficiency planning – including vehicles such as trusts, franking credits, or capital gains tax (CGT) strategies.
• Estate and succession planning – protecting intergenerational wealth transfer with legal and financial safeguards.
• Risk management and insurance.

Families and individuals want to ensure that assets retain their value and continue generating income over time.

For those thinking about how to best approach their financial asset management, careful planning can make a meaningful difference. While every family’s financial circumstances are unique, and individualised advice should be sought, there are some broad considerations that can help ensure a smooth transition.

Structured planning for the future

One of the most important steps is having a structured plan. Without the right advice and planning, many families make the mistake of assuming that wealth will naturally pass from one generation to the next without issue. However, without clear planning, this process can become complex and, in some cases, lead to unintended complications. Checking those important documents such as wills , estate plans and asset management strategies, are up to date can help reduce uncertainty. The way financial assets are structured may also play a role in how they are preserved, making it beneficial to regularly review and refine an overall approach to asset management.

Safeguarding assets for sustainable wealth

Another important consideration is the long-term sustainability of wealth. A common challenge for families is making sure that assets continue to support future generations rather than being eroded by poor planning or mismanagement.

While some may take a conservative approach, prioritising financial stability, others may see wealth transfer as an opportunity to support younger generations in building their own financial futures. Striking the right balance between maintaining capital and providing flexibility is essential.

A well-considered financial approach should also include diversification. By spreading investments across different asset classes, families can better manage risk and create a more resilient financial foundation.

Passing down knowledge as well as wealth

One of the most overlooked aspects of intergenerational wealth planning is financial literacy. Passing on financial resources is one thing, but ensuring future generations can manage them effectively is another.

Open conversations about financial values, responsibilities and expectations can help younger family members develop the knowledge they need to make informed decisions. When families take the time to share their knowledge and have honest conversations about financial management, investment strategies and long-term planning, they lay the groundwork for a more sustainable financial future.

Financial asset management is not just about numbers – it is about creating a legacy. By thinking ahead and making informed decisions, Australian families can ensure that wealth is not only passed on but continues to serve future generations in meaningful ways. While everyone’s approach will vary, taking a proactive stance can provide confidence that assets will be well managed for years to come.

The information has been prepared without considering the objectives, financial situation, or needs of any individual. For this reason, any individual should, before acting on this information, consider the appropriateness of the information, having regards to the individual’s objectives, financial situation or needs, and, if necessary, seek appropriate professional advice.

This article is brought to you by Selfwealth, a proud partner of the Australian Shareholders’ Association.