We’ve all heard the stories of children inheriting a large sum of money that should produce a lifetime of low financial stress only to learn the rest of the story – a squandered inheritance and a life savings vanished. In fact, some studies have shown that a staggering 70% of wealthy families lose their wealth in the generation succeeding the family member who created it. Most parents want to leave a meaningful inheritance for their children if given the opportunity – but how do we ensure our heirs will not become a statistic?
Often times the answer to such a challenging question isn’t some mystical piece of advice or unnecessarily complicated trust document. The key to setting your family up for financial success that will last for generations more often than not is simply involving your children in discussions around wealth. The reason most family wealth is lost after one generation is pretty simple – we’ve not prepared the next generation how to handle wealth.
I recently had the opportunity to discuss this issue with a reporter doing a feature on financial literacy and discuss some ways to involve your family in discussions surrounding wealth. I’ve had the opportunity to implement these strategies with several families and I’d love to hear some strategies your family has incorporated. To read the article ‘Advisors Practice What They Teach’ click here: https://financialadvisoriq.com/c/1322663/147593