I’m a Wealth Manager: 5 Money Strategies for Generational Wealth Retirees Should Implement in 2026
Written by
Laura Beck
Edited by
Jenna Klaverweiden
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Building wealth is one challenge. Making sure it outlasts you is another. For retirees focused on leaving a lasting financial legacy, the strategies that matter most in 2026 go well beyond a basic will or a savings account.
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Aaron Channing, partner and private wealth advisor at Fortivus Wealth Group, a private client group of Northwestern Mutual, shared five moves he recommends to clients who want their wealth to work for the next generation (and the one after that!).
1. Leverage 529 Plans for Grandchildren
A 529 education savings plan is one of the most tax-efficient tools available for transferring wealth to grandchildren. Contributions grow tax-free, and withdrawals for qualified education expenses come out tax-free as well, creating compounding benefits that can span decades.
Channing pointed to a lesser-known strategy called front-loading, which allows married couples to contribute up to five years’ worth of annual gifts at once per beneficiary. Those assets leave the taxable estate immediately while grandparents retain control over how the funds are ultimately used.
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2. Establish Trust Funds for Controlled and Tax-Efficient Transfers
A well-structured trust does more than move assets. It protects them. Channing said properly designed trust funds shield transferred assets from creditors, divorce settlements and poor financial decisions by beneficiaries — risks that a direct inheritance does nothing to address.
Grantors can build in specific distribution rules tied to age thresholds, educational milestones or other life events, helping ensure that wealth is preserved and used responsibly rather than depleted quickly by heirs who may not be ready to manage a large inheritance.
3. Use Life Insurance To Create Liquidity and Preserve Assets
Life insurance is often underestimated as an estate planning tool. Channing said it plays a strategic role by providing immediate liquidity at death, which can be used to cover estate taxes or other obligations without forcing heirs to sell family assets (real estate, investments, a closely held business, etc.) at the wrong time.
Beyond covering costs, life insurance proceeds can also serve as a direct, tax-efficient wealth transfer that builds a financial foundation for children and grandchildren without disrupting the broader estate plan.
4. Maintain a Diversified Investment Portfolio
Market volatility doesn’t stop mattering in retirement, especially when the goal is preserving wealth across generations. Channing said spreading investments across asset classes, geographies and strategies reduces the risk that any single downturn will cause lasting damage to the family’s financial position.
Diversification in this context isn’t just about protecting what exists today. It’s about supporting sustainable growth that keeps assets intact long enough to benefit grandchildren and great-grandchildren.
5. Involve Family in the Planning Process
Channing said this one is often the most overlooked strategy of all. The technical elements of an estate plan mean very little if the people inheriting the wealth don’t understand it or aren’t prepared to steward it well.
Bringing children and grandchildren into financial planning conversations improves outcomes. Families that communicate openly about wealth tend to experience fewer conflicts, stronger stewardship and a higher likelihood that assets will benefit multiple generations rather than disappearing within one.
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