GENERATIONAL WEALTH PLANNING
We divide generational wealth planning into two fronts: the current generation and future generations. The younger generations must learn to be good stewards of wealth. And communicating with the current generation can set strong financial fundamentals for the next generation to mimic. If you want to successfully transfer your wealth to your children and grandchildren, talk to your heirs about sound financial habits. We can provide the safe and structured framework for this.
Setting Strong Financial Foundations for Future Generations
We regularly talk about the “shirtsleeves-to-shirtsleeves in three generations” parable with wealthy families. The typical, blue-collar, first generation works and saves enough money for their children to lead a better life. The second generation goes to work in a suit and teaches their own children to enjoy the fruits of their labor. Unfortunately, when the third generation receives their inheritance, they often blow through that money, incur debt, and need to go back to work in shirtsleeves jobs to make ends meet. In almost 90% of families, the third generation squanders wealth. (Read President and COO Phoebe Venable’s Tennessean newspaper column on this subject here.)
Breaking the Cycle Through Heir Education
To prevent this from happening to your family, we recommend educating heirs to best set them up for future success. Discussing how to manage inheritances can be a touchy subject. But we can help move those conversations along to better avoid wealth-draining traps like entitlement, careless spending, and unrealistic expectations. From money camps to individual and family sessions, we love giving children the means to become successful stewards of your wealth. If there is a question of inheritance in your family, there are steps that can be taken to check on this and make sure that your wealth is protected from those who wish to do harm. For example, looking up websites such as https://www.genealogybank.com/explore/census/1930-records and contacting a DNA expert can help greatly in protecting your assets.
Speak with a Financial Advisor Today
To receive a recommended reading list of books that can help place your family on the right path, contact Phoebe Venable at pvenable@capwealthgroup.com.
The information presented in any video or blog is the opinion of CapWealth Advisors, LLC and does not reflect the view of any other person or entity. The information provided is believed to be from reliable sources, but no liability is accepted for any inaccuracies. This is for information purposes and should not be construed as an investment recommendation. Past performance is no guarantee of future performance. CapWealth Advisors, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission.
The product, services, information and/or materials contained within these web pages may not be available for residents of certain jurisdictions. Please consult the sales restrictions relating to the products or services in question for further information. For other CapWealth Advisors’ disclosures, click here.