According to a recent survey 70% of families lose their wealth by the 2^nd generation and an astounding 90% lose it by the 3^rd generation. 

Generally wealth is lost because the current generation hasn’t prepared the next generation to manage finances and they’ve kept them in the dark about their financial status.

If you think about the Kennedy and Rockefeller families, they’ve been able to maintain wealth in their families for generations. Mostly in part because they’ve established guidelines for the next generations to follow.

Here are a few tips to help you pass on generational wealth:

1. Prepare the next generation:
   • Communicate, Communicate, Communicate-Share your financial knowledge, teach ALL members of the family
   • Hold family finance sessions- talk about the goals of the family and what it will take to get there
   • Have them practice NOW with allowance- give them a monthly amount and have them manage it by allocating for different categories such as Spend, Save, Donation.
2. Be Financially Responsible:
   • Make sure you have insurance, specifically health and life in case of an unexpected event, they are protected.
   • Create a Will so that you can direct what you want to happen with your assets.
   • Minimize debt to ensure as much of your wealth as possible is passed on.
   • Practice great financial habits, after all children mimic your behavior.
3. Establish Trusts-a trust is simply a legal entity that holds property and assets and distributes to your beneficiaries when certain conditions are met.
   • For instance you may set up a trust to distribute a certain amount every year or five years so that all of the property/assets are not distributed at once.

If you’re committed to building wealth and passing it on to the next generation, I’ve created a generational wealth pledge packet. It includes a pledge, the 5 steps to build wealth and the 3 keys to pass it on.  Click the link to get your copy Generational Wealth Pledge