Turning 18 gives young adults legal control over inherited wealth, but not necessarily the financial maturity to manage it.
In this article in Blue Chip magazine, Wessel Oosthuizen says advisers should see this stage as a transition from ownership to stewardship, rather than simply executing instructions. He argues that advice must be tailored to a young adult’s level of understanding, with clear explanations of the long-term consequences of withdrawals and poor decisions.
“Young adults should not be treated as incapable, but as emerging financial decision-makers,” says Oosthuizen. He recommends starting planning before age 18, identifying red flags such as impulsive withdrawals or peer pressure, and helping young clients preserve long-term wealth through structured guidance and ongoing communication.
Read the full article here.
Wessel Oosthuizen is a CFP®, a FISA member and Head of Financial Planning at Fiscal Private Clients