How To Maintain Wealth For Generations | SJS Investment Services
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How To Maintain Wealth For Generations

September 10, 2020
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Client meetingBy SJS Founder & CEO Scott Savage

Did you know that 70 percent of millionaire families lose their wealth by the second generation?[1] That generation would be only the grandchildren of the breadwinner. And did you know that 90 percent of families lose their wealth by the third generation, the great-grandchildren?[1] Those are scary statistics for people who have worked hard all their lives, built a business or other significant assets, and had dreams of that wealth providing the means for the people they love to live better lives of their own.

It’s really the “American Dream.” But wow! Who would have guessed the dream could end that way, and frequently does? It doesn’t have to. You can learn steps which can help to maintain your wealth, and pass this knowledge onto future generations. This is something we do, day in and day out, working with clients who view leaving an inheritance or a legacy as a priority. Please ask us, but until then, here’s what you need to know:How to maintain wealth for generations

  1. Talk to and educate your children about money. Most families don’t talk about money because many believe it’s not appropriate. That’s a big miss in terms of financial education.
  2. Talk about the will. Everyone will find out who got what anyway, so why be secretive? It’s an opportunity to share your wishes for your legacy and for your family’s longevity.
  3. Create a vision statement. Businesses have them. Why not families? Your vision statement serves as the grounding force that puts wealth into context. Money becomes more than money. It becomes a tool for something bigger. Create one together and share it.

These strategies are not a guarantee for successfully ensuring your legacy, but we have seen them work for many families. Give them a go, no matter how much money you currently have. Tomorrow is another day. Work hard, be deliberate about educating and communicating. You may create not just smarter children, but the legacy you always wanted.

 


Important Disclosure Information and Sources:

[1]  “5 lies you’ve been told about generational wealth.” Pavithra Mohan, 18-Jul-2019, fastcompany.com.

There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market. Advisory services are provided by SJS Investment Services, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. This material has been prepared for informational purposes only.