For several weeks we’ve been discussing what Charlie Collier found when he studied what made wealthy families truly successful over the long term. While panning for nuggets from our previous posts, we see seven indispensable practices that maximize family wealth, and here they are…
The seven big wins
- Thinking over feeling – Make decisions based more on thinking than on emotion
- ‘Ships matter – Form candid, two-way relationships with as many family members as possible
- Look to include – Foster an open and inclusive family system
- You might be next – Rally around family members who are going through life’s transitions
- Open the door – Think creatively about responding to life’s challenges
- Raise ‘em to let ‘em go – Rear autonomous children
- Treat adults like adults – Develop relationships with adult children that are open, separate and equal
Four bonus practices – tell stories
The power of storytelling runs throughout Charlie’s research and experience. Here are four reasons to make the most of it:
- Stories send a message to children and grandchildren that they belong to a family that is unique
- Stories are often the only way for younger generations to know the wealth creator. Stories connect, inform and inspire.
- Stories integrate new family members, providing history and context.
- Stories calm during anxious times, demonstrating how past challenges have been overcome.
Think generations, not quarters
As we’ve discussed in previous weeks, true family wealth is much more than money; in addition to financial capital, there’s intellectual, social and human capital.
It’s easy to think of these four elements as self-fulfilling and self-perpetuating, but it takes work to build and maintain them over generations.
Fortunately most of the “work” involved is interesting and enjoyable – spending time with and getting to know family members, sharing stories, and fostering an open dialog about family priorities and practices.
Sometimes taking the first step is the hardest. It’s work, but it’s work that pays off for a long, long time.
John Osbon – firstname.lastname@example.org
This communication may include forward-looking statements. All statements other than statements of historical fact are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” and “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those discussed in such forward-looking statements.”
“Historical performance is not indicative of future results. The investment return will fluctuate with market conditions.
Past performance is not indicative of any specific investment or future results. Views regarding the economy, securities markets or other specialized areas, like all predictors of future events, cannot be guaranteed to be accurate and may result in economic loss to the investor.
Investment strategies, philosophies, allocations and holdings are subject to change without prior notice.
This communication is intended to provide general information only and should not be construed as an offer of specifically tailored individualized advice.
While the Adviser believes the outside data sources cited to be credible, it has not independently verified the correctness of any of their inputs or calculations and, therefore, does not warranty the accuracy of any third-party sources or information.
Adviser does not endorse the statements, services or performance of any third-party vendor.
Unless stated otherwise, any mention of specific securities or investments is for hypothetical and illustrative purposes only. Adviser’s clients may or may not hold the securities discussed in their portfolios. Adviser makes no representations that any of the securities discussed have been or will be profitable.
Any IPO alerts are purely informational and should not be construed as recommendations to invest.