Submitted by Patrick Cote on August 23, 2017
How to avoid “shirtsleeves to shirtsleeves in three generations”
Congratulations! You are on track to accumulate enough wealth to consider yourself wealthy (or maybe you are already there)! Now what? If you have kids (or nieces and nephews), one of your biggest concerns is likely to be to ensure that they, as well as future generations of your family, are able to benefit from the wealth in a positive manner. Even if you don’t think the amount you will leave to future generations is going to be that substantial, many of the tips below will still help.
At AssetGrade, we have had a number of clients ask for help with multiple generations of their family. In particular, we are focusing on ensuring that the priorities and goals of each generation are aligned where possible. We have seen our clients be most successful when they have kept the multi-generation goals specific and manageable.
For most folks who are the original creators of wealth for their family, whether they are HENRYs (High Earners, Not Rich Yet) or already wealthy, they want to see their children and future generations benefit from the family wealth by getting a great education and helping them with a head-start to lead fulfilling, productive lives. They want to avoid scenarios in which the wealth becomes a negative influence on the family. A good financial plan can help define these specific goals for your family.