Why Do Some People Blow The Family Fortune? 5 Tips To Build Wealth For Generations
Why Do Some People Blow The Family Fortune? 5 Tips To Build Wealth For Generations
Benzinga Contributor Wed, August 4, 2021
As more baby boomers (those born from 1946 to 1964) move deeper into retirement, a massive transfer of wealth to younger generations is approaching. One report mentions that over the next 25 years, U.S. households will pass nearly $70 trillion to their children.
But there is no guarantee that a family’s wealth will last for generations. Building and maintaining wealth, so it benefits many generations, requires proper financial education, perspective among family members, and communication, says Chance Robinson, a financial advisor and author of Financial Myths: Important Information You May Not Know About Your Retirement And Financial Future.
“There is much to learn from the reckless wealthy,” Robinson says. “There have been numerous instances where inheritors have squandered wealth. Unfortunately, they could not build upon what was available to them.
“Preserving intergenerational wealth is an uphill task. But understanding the differences between a wealth-generation mindset and a wealth-destroying one can teach lessons that are vital to continuing and increasing intergenerational wealth in your own family.”
Robinson has these tips for families to consider about building and maintaining intergenerational wealth:
View Wealth As More Than Money And Property
To Robinson, the first things that come to mind when discussing wealth are bank balances and properties. Still, he adds that a family’s collective wealth goes deeper to include family memories, relationships, and ethos – its aspirations for the greater good. “These intangible but important emotional factors play an important role in keeping the family and its generations on the same page and keeping the financial assets intact,” he says.
Take An Unselfish, Long-Term View
“There is no place for a self-centered attitude,” Robinson notes. “The person intending to generate wealth and leave a legacy behind would likely possess an open and generous mind. He or she would not necessarily look for ways to consume everything in his or her lifetime.
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