When it comes to family wealth, there's much more to consider than just money. While money is essential, it alone cannot build or sustain a strong, united family. Your clients need to practice financial wisdom, making savvy decisions consistently, in both prosperous and challenging times. However, even that isn't enough—a family needs love to truly thrive.
Having worked with hundreds of families over the years, we've identified 33 strategies for growing and passing on true family wealth. No single strategy can achieve this alone, but incorporating as many as possible will significantly increase their chances.
Today, we'll explore the next six strategies, with the final 6 to follow in an upcoming post. Click here for a recap of Strategies 1-5, Strategies 6-11, Strategies 12-16, and Strategies 17-22.
How you discuss your finances with your family today will affect how your family functions tomorrow. As your financial wealth grows, your family dynamics become more demanding, making it more important to talk and share financial wisdom with those you love.
Rich or poor, every family has values, cash flow, a balance sheet, and the legacy of how they handled it all.
In today’s busy spread-out world, it is hard to carve out quality time for family gatherings, and even when they do happen, we are so caught up in the joy of being together that it’s hard to find time to discuss family business.
Someone once told me that all parents want from their children is their time, while what the children want from their parents is their money. While the saying may be a little harsh, a family meeting that brings everyone together actually gives everyone what they want.
When’s your next family meeting?
True family wealth doesn’t happen by accident. Growing, preserving, and sharing true family wealth is serious business, and by its very nature cannot be done without intention and commitment. As a family leader and fiduciary, you set the tone. The way you talk, walk, and act about your family enterprise all matters. What may seem like a small decision today can have a substantial effect years down the road. Your disciplined habits can turn a small fortune into a large one and be a model for those who are watching.
At age 45, Sam Walton established his first succession plan. When he passed away in his 70s, his family was well-positioned to carry on without him. You never know how much time you have, but when you are responsible for a family, it’s best to plan as though everyone will outlive you.
A little thought, preparation, and continual conversation and education now can go a long way toward equipping your successors to hit the ground running when it’s their turn.
A big part of success is having a sense of what might go wrong. Recognizing risk and planning accordingly can actually turn what is frightening and unknown - the danger - into an opportunity. Preparing for the worst will create a nimble family enterprise well poised to succeed, and perhaps grow stronger than ever when adversity arrives.
This blog post explores Ways 23-27 of the 33 Ways to True Family Wealth, highlighting the roles of love, financial wisdom, leadership, and inclusivity in building and maintaining lasting family wealth. Stay tuned for the next installment, where we’ll wrap up the series with additional strategies to help your family thrive.
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