Paul Oesterheld

New advice business Freshwater Wealth has expanded its team to help service the influx of inter-generational wealth transfer clients which are being referred by existing clients and who now account for 15% of referrals to the business.

According to Freshwater Wealth Founder and Partner Roger Perrett, the businesses fast-paced expansion from three to five advisers in a matter of months and additional support staff, reflects the wave of intergenerational wealth transfer clients seeking assistance from the advice industry.

It has been estimated by the Productivity Commission in 2021 that around $3.5 trillion in assets will be transferred in Australia alone by 2050, with a more recent study by JBWere findng women will receive 65 per cent of the nearly $5 trillion due to pass from Baby Boomers and their parents to the next generation by 2034.^[1]

“The average age of our clients is 60-70 years and their parents are 80-90 years,” said Perrett. “Our clients are grappling with their parent’s diagnoses as well as dementia or alzheimers and are looking for help around Powers of Attorney, transferring wealth and ensuring their care.”

To provide these services, Freshwater Wealth is joined by two new Partners, Paul Oesterheld and Archana Bhatia, who both bring more than 30 years experience each to the growing business. Oesterheld previously worked with Viridian Advisory and Westpac Private Bank where he stayed for 25 years, while Bhatia was previously at Financial Decisions where she managed the team of advisers as Head of Wealth and as a board member, after 20 years at Westpac.

Perrett said the influx of wealth transfer clients has required the business to focus on broadening the relationships it has with its existing clients, and to work more closely with women who have become the head of families or have received wealth transfers.

“Multi-generational relationships across families has become very important to us, getting to know the next layer of families and all the issues that involves, especially health.”

Perrett said a Will is the best document which can be used to understand the family structure and family issues and has a range of legal refferal partners which the business works with.

“Wills sort out who the black sheep is in the family and often provides an up-to-date indicator on family relationships, health status and future plans.”

Freshwater Wealth entered the advice market in December 2023 providing a professional, education-based advice service to high-net-worth individuals including retiring baby-boomers and single and widowed women seeking a tailored and proactive advice service.

It aims to be a conduit to client’s achieving their lifestyle goals but also to identify and reduce problems they may not realise they have through education and proactive advice to help manage common life challenges.

These financial problems and challenges include avoiding debt mistakes, living confidently without paying income tax again, caring for elderly parents, cybersecurity, safely transferring money and gifting funds and inheritance with the desired outcomes.

“Intergenerational wealth transfer bring with it a host of issues and requires relationships with more than just the client who sits in front of you,” said Perrett.

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Notes:
[1] JBWere The Growth of Women and Wealth March 2024

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