The creation of family wealth takes years of dedication, sacrifice and hard work. Because of this, no family wants to be in a position where they need to create their wealth twice. Instead, they are desperately seeking the financial peace of mind that comes from knowing that their interests are being placed ahead of their professional advisors, and that their hard-earned wealth is being prudently stewarded in a manner that makes it sustainable for their lifestyle, family legacy and philanthropic aspirations.
The challenge for many affluent families, though, is that wealth is not self-perpetuating. Without proper advice, planning & communication, family wealth is often eroded within 2 – 3 generations. The British proverb, “Clogs to clogs in three generations” is a global phenomenon that appears in every culture.
Research by an independent US family advisory firm studied approximately 2,500 US families, over a twenty-year period, who had owned, sold a business, and gone through a generational wealth transition. The results of this study were that 70% of family wealth transitions failed primarily due to a combination of trust and communications breakdown, inadequate preparation of heirs, and poor governance for the guidance of decision making. In other words, deficient mentoring is the root cause of family wealth transition failures.
Over my 30-year career, I’ve developed a specialty in the design, build, operation and governance of family wealth management businesses working as both a Bay Street executive and entrepreneur. These experiences, combined with my knowledge, skills and abilities, have enabled me to successfully steward & transition family wealth between generations as a mentor to both affluent families and wealth management businesses such as HighView Financial Group.
For more information, please contact me.