Why Family Wealth multi-generational planning is Important?
64 % have not talked about how they plan to pass their assets, that means only 36% have been prepped by their benefactors. 70% lose their wealth by the second generation and a stunning 90% by the third. Most of them have no clue as to the value of money or how to handle it. The third generation is usually doomed. It takes the average recipient of an inheritance 19 days until they buy a new car. There are a variety of reasons why this happens:
*generations are taught not to talk about money
*The prior generation worries the next generation will become lazy and entitled
*many have NO clue about the value of money and how to handle it
*they are financially illiterate, they don’t understand
*personal finance
*compound interest
*time value of money
“Shirtsleeves to shirtsleeves in 3 generations”