Why Rich Families Go Broke in 3 Generations

One generation builds it. The next consolidates it. The third squanders it. It is a pattern I see time and time again and it comes down to one thing. Respect for money. And that respect cannot be handed to someone. It has to be earned. Young people need to go out and learn how hard it is to make money, how hard it is to save it and how hard it is to invest it or build a business. No silver platters. Help yes, but not at the expense of that lesson. The timing of generosity matters enormously. Once respect for money is established, helping out children in their 30s and 40s makes a lot of sense. One of the key goals I see in clients with real wealth is wanting to see the next generation benefit while they are still alive. But handing a large lump sum to an 18 year old is a very fast way to buy a flashy car. General Advice Only. Robert Goudie is an Authorised Representative (No. 235974) of Consortium Private Wealth Pty (AFS Licence 495401).

Disclaimer || The information provided in this post is general in nature only and does not constitute personal financial advice. Robert Goudie is an Authorised Representative (No. 235974) of AFSL 495401.