Shirtsleeves to Shirtsleeves in Three Generations – Three Ways to Counter the Old Saying

1. Shirtsleeves to Shirtsleeves in Three Generations – Three Ways to Counter the Old Saying Even the richest families, be in India or anywhere else in the world find it difficult to preserve their wealth and unity for generations. Records show that 9 in 10 families are unable to hold onto their family unity and assets for more than three generations. The number, although, is disappointing, the good news is that there’s a formula to sustain the wealth from one generation to another. When you are trying to save and increase family wealth in India, these three guidelines will be of great help in building lasting unity and preserving wealth for future. Effective Communication and Trust Building Lack of communication and trust is one of the major reasons families lose their wealth. Be the adult children or grandchildren in the family, they should have the freedom to express themselves and be heard as adults, even when they speak to their grandparents or parents. The permission to express themselves and make decisions, need to feel safe in when asserting feelings/decisions and an affirmation that every family member’s contribution makes a difference are the three important practices to follow in every family. Preparing each Generation for Transfer of Leadership Families that are successful in sustaining their wealth and unity for generations actually pay attention to preparing children for responsibilities they will be taking on in future. Be it allowing children to make joint decisions in buying small gifts or things for the house from family fund or teaching them the skills to invest and spend money in business and

2. finance – learning should start at an early age. Setting up a family fund is usually the right way to train future generations. Having a Trustworthy Financial Advisor Wealthy families no longer hesitate from hiring an advisor to create investment management, financial planning and estate planning strategies that minimize taxes, preserve wealth and manage the cash flow. Trustworthiness and experience should be the two criteria for selecting professional who understands unique dynamic of the family, educates the members about money management and acts as an unbiased facilitator. Final Words Whether it is an inherited wealth or created on your own, preserving it for the future generations need some sound investment management planning. Wealth is created with sacrifice and risk taking, so make sure to have a thoughtful strategy that impacts the family and the assets in a positive manner. Source : https://clientassociatesindia.wordpress.com/2016/12/21/shirtsleeves-to-shirtsleeves-in-three-generatio ns-three-ways-to-counter-the-old-saying/