How To Maintain Wealth For Generations

By SJS Founder & CEO Scott Savage.

Did you know that 70 percent of millionaire families lose their wealth by the second generation?[1] That generation would be only the grandchildren of the breadwinner. And did you know that 90 percent of families lose their wealth by the third generation, the great-grandchildren?[1] Those are scary statistics for people who have worked hard all their lives, built a business or other significant assets, and had dreams of that wealth providing the means for the people they love to live better lives of their own.

It’s really the “American Dream.” But wow! Who would have guessed the dream could end that way, and frequently does? We’re here to tell you – it doesn’t have to, once you know how to maintain wealth for future generations. This is something we do, day in and day out, helping to alleviate this concern for clients who view leaving an inheritance or a legacy as a priority. Please ask us, but until then, here’s what you need to know.

Talk to and educate your children about money

Most families don’t talk about money because many believe it’s not appropriate. That’s a big miss in terms of financial education.

Talk about the will

Everyone will find out who got what anyway, so why be secretive? It’s an opportunity to share your wishes for your legacy and for your family’s longevity.

Create a vision statement

Businesses have them. Why not families? Your vision statement serves as the grounding force that puts wealth into context. Money becomes more than money. It becomes a tool for something bigger. Create one together and share it.

These strategies are not a guarantee for successfully ensuring your legacy, but we have seen them work for many families. Give them a go, no matter how much money you currently have. Tomorrow is another day. Work hard, be deliberate about educating and communicating. You’ll create not just smarter children, but the legacy you always wanted.

---

Important Disclosure Information and Sources:

[1]  “5 lies you’ve been told about generational wealth.” Pavithra Mohan, 18-Jul-2019, fastcompany.com.

There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market. Advisory services are provided by SJS Investment Services, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. This material has been prepared for informational purposes only.

---

Suggested Reading

---

Changing Or Creating A Trust?

---

Let Us Help You Put Your Plan Into Action!

By SJS Managing Director Jennifer Smiljanich

When’s the last time you updated your trust document? Or, maybe your life circumstances have you considering one for the first time. No matter your situation, the process of changing or setting up a trust might be unfamiliar to you. We understand. The whole process is just not top of mind until, one day, it is.

Trusts are vehicles designed to protect and transfer wealth, but if you’re like many people, you don’t review your trust documents very often, or make changes to them. Many of us are part of the “set it and forget it” crowd until some life event, or just the sheer passing of the years, makes us think: “We probably should take a look at our trust and estate planning documents.” And then there’s the immediate follow-up surprise: “How many years has it been? Can’t be!”

Well, all that passing time, or just the unfamiliarity of a new trust, can leave you at a disadvantage when it comes to coordinating your investment management account titling and beneficiary designations with your trust documents. But here’s the good news. Let SJS Investment Services know your intentions, and we can help set your mind at ease.

As your investment advisors, we are here to help you through the process. That’s the first and most important reason to give us a call when you are considering a trust or making changes to the one(s) you have. It’s not enough to simply update your trust documents; you also have to implement your plan. Working with you and your estate planning professional, we’ll help you take care of changing beneficiaries on all your accounts, updating account titling, and all the other tedious but crucial tasks required to put your estate plan into action. As a client of SJS, please know that you have a partner to help you reach the finish line!

Also, let us know about any life transition you might be experiencing. Maybe it’s a marriage, the birth of a child, the loss of a spouse, a recent inheritance, a divorce, a new home, or a business sale. There are so many life situations. You’ll be comforted to know we have been there for our clients through them all. Many times!

We can help you navigate all of the forms and documents needed to change your name, address, beneficiaries, and so on for your investment accounts. When you work with SJS, your wealth isn’t the only thing we take care of. We take care of you. That’s why we’re here!

---

Suggested Reading

---