“Shirtsleeves to shirtsleeves in three generations.” The saying is true, and the cycle is real. As the expression indicates, after the buying, the building, and the selling, there’s rarely anything left of a family’s wealth for the fourth generation. Multi-generational planning focuses on breaking that cycle by allowing your heirs to have the knowledge and stability necessary to build a foundation for future financial success.
At the core of successful wealth planning is a family that’s intentional and can arrive at a vision incorporating values consistent with what the family strives for, works toward, and tries to achieve. The first step towards a multi-generational wealth planning strategy is to get everyone on board with a single plan. Everyone must come to the table, including outside trusted advisors—such as financial professionals, attorneys, accountants, business partners, and even charitable organizations—so everyone works collaboratively and is on the same page.
Begin with a plan. Understand the family’s history, create a family charter, and be open to communication and flexibility regarding future wealth management.
- A family charter is a document that describes the values, vision, mission, roles, and responsibilities of family members. It should also contain sections on the charter’s purpose, how it’ll change throughout the generations, and which members have decision-making capabilities. Lastly, a family charter should detail members’ accountability, participation, and, most importantly, transparency.
- Look past the tangible aspects of financial planning and become genuinely involved in the overall well-being of future generations. It’s this new perspective that allows a family’s wealth to take a giant leap toward long-term sustainability. Explore the “dimensions of wealth“—financial, human, family, structural, societal—as a means to clarify the values, ideas, and traits your family wants to pass along to future generations.
Once the discussions are on track, it’s time to incorporate a wealth-transfer plan. Successful plans take on a holistic approach that should include:
- Retirement planning
- Estate planning
- Tax planning
- Charitable giving
- Business succession planning
Creating and implementing a multi-generational plan is no easy task. It takes a lot of hard work, long hours, family cooperation, and professional guidance to see it come to fruition. The satisfaction that comes with knowing your family will be financially stable for future generations is the priceless reward for completing the planning process. Every family is different, and your circumstances are unique, so give us a call at (603) 261-3736, and we’ll help you start planning.
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.