Preserve The Three Types Of Family Wealth – The health and growth of the family is very important for many people who have wealth. The creator of wealth, which often get a wealth of sacrifice and of risk, hoping that their wealth is preserved and can affect the family positive for many generations.
Generally in Western society, we believe that the practice of the right to preserve the only financial assets, the things we own, is the main goal. Although it is certainly very important goals, it’s definitely not the only one.
It has actually mentioned in previous writings, that wealth is often created and destroyed in three generations. As James Hughes in his book,” the wealth of the family”, Chinese proverb old is ” Sleeves to sleeves in three generations.”To further explain, the existence of wealth occurs in three stages in the family.
Parallel relationship is with physics, the first stage is the creation that occurs in the first generation with the creator of wealth. This is usually a “Mom and Pop” that create wealth, usually through successful business ventures.
The second stage is a static stage; the status quo or what can be called as the stage of balance where wealth is retained or preserved.
Then finally, the existence of the material, or in the case of this wealth, to move into a state of entropy or decay. If it is not feasible attended, wealth began to disappear or transferred outside of the Family. This usually occurs by the third generation, or at least have the reputation to do it, because the third generation is far from the concept and requirements needed to create wealth in the first place, also known as the “silver spoon” syndrome.
(Then why not) why not (at any lives up) at the time of death (in the throat), which at the time lives up to the esophagus.
The first step is to realize that there is more than one type of wealth in the family that are healthy and sustainable. Wealth, the type of which is important in a strong family enduring for generations, comes in three forms: a wealth of human, intellectual property, and financial wealth.
The wealth of a man related to the welfare of each member of the family and the happiness of; to injure with purpose and strength in their own identity and sense of freedom. Often, one of the challenges of the individual inherited wealth that is significant is that they know they don’t work for it or make it in the first place. Along with not having a clue of what is really required to create wealth, is that they know that they don’t get it and can form a guilt complex.
Another result, which is common in the second generation, is the sense of obligation to defend it, where they take the profession to do it like to be a lawyer or a financial advisor. But, among the Recipients of the wealth of significant, life really can be awkward in some ways. Often, the heir is wondering why their friends really like them whether they love them just because of their wealth? It can create insecurity.
The point is, that the wealth of a man is an important form of wealth that needs to be given the environment in the family to grow and develop, and maintain and build a sense of purpose. Therefore, such a successful organization, the most important asset in a family is the people and the success, growth and happiness of its members. So, the physical well-being and emotional state should be a top priority.
The richness of both in the family was intellectual property. Intellectual property can be described as building and maintaining the knowledge, creativity, skills, and experience to support and promote the human and financial wealth and well-being of the whole family.
Although difficult to measure, intellectual property can be measured by the success of each individual, whether it’s academic, artistic, career, or business related, or interpersonal. Intellectual capital is also necessary in order that the members of the family of the individual to preserve and develop the financial capital. In fact, both human and intellectual capital are important in order for the financial wealth to survive in the family for generations.
Without proper planning and governance structure of the family, three kinds of wealth, be human, intellectual and financial wealth will not endure. Therefore, the saying “sleeve shirt shirt sleeves in three generations” to come to fruition. Proper estate and legacy planning should be made with caution and structured in ways that save three forms of wealth.