Wealth management firms face a significant challenge as $124 trillion is set to transfer to younger generations over the next 20 years, according to Janus Henderson executives. A Capgemini survey indicates that 81% of next-generation millionaires plan to change wealth managers. To retain heirs, Janus Henderson suggests firms build diverse teams, establish trust early and embrace digital innovations.

Most clients who inherited IRAs in 2020 or later from people other than their spouse must take required minimum distributions by Dec. 31 under new IRS rules, which can lead to significant tax implications, especially for those in their working years. Financial advisors note that many inheritors are confused about the rules, which can lead to mistakes.

To address growing cyber threats, firms are urged to prioritize employee security training, modernize legacy IT systems and consider partnering with managed security service providers. These proactive steps aim to close security gaps, improve breach recovery and response time, and enhance resilience against sophisticated attacks, including AI-driven threats and deepfakes.

Financial advisors face heightened stress at year-end due to tax deadlines and client demands, leading to potential burnout. Advisors suggest managing this period by planning ahead, delegating tasks and setting personal boundaries. "Hustling through burnout doesn't make you more productive; it just makes you resent the work you love," says Michelle Taylor, founder of the Women in Wealth Initiative.

Wealth managers in the US are increasingly using evergreen fund structures to provide clients with access to private markets, according to a report by With Intelligence. The report highlights the growing importance of private credit, private equity and real estate investment trusts in wealth management portfolios.

Caring for so-called boomerang children -- those who require support in adulthood -- can create financial challenges for Gen Xers. "The greatest gift Gen X can give the next generation is resilience," writes Preston Cherry of Concurrent Wealth Management. "By modeling boundaries, you prepare your kids to stand strong and preserve your ability to retire without becoming dependent on them later."