We Can Help You Protect Your Golden Nest EggREAD MORE
One of the major goals of a successful family business is the accumulation and preservation of wealth, designed to safeguard the lifestyle of generations to come. It's important for the owners of a family business to put in place a comprehensive wealth management plan that recognizes that accumulating wealth, through the daily activities of the business, is different from preserving wealth for future generations.
Both goals need to be carefully considered and managed in order to achieve multi-generational financial goals. To help put in place a financial plan that will preserve family business wealth, take time to consider the following points:
Conduct regular in-depth analyses of your current wealth and your current and future financial needs.
Secure the advice of an accredited financial professional to help you handle the legalities and technicalities of managing your business' wealth.
A good financial
professional will take the time to understand the dynamics of your family and your financial position so that they can help you to achieve your goals.
Spend time understanding your different wealth planning needs, including wealth protection strategies, charitable giving programmes,
development funding, generational wealth transfers, estate duties, and the tax implications of wealth distribution.
Foster and maintain open family and stakeholder relationships so that issues of wealth can be discussed in an open and honest forum.
Think long-term. Preserving family wealth can become more difficult as time goes on. Plan for your extended family by having a wealth preservation and wealth preservation in place, understanding the benefits of family trusts rather than direct re-distribution of wealth, and ensuring that your children and grandchildren are financially educated and can properly manage relationships with the business' financial advisers.
Investing time and effort in multi-generational planning can help to preserve the wealth of a family on more than a financial level. It can provide a space for parents to teach their children about the benefits of self-discipline, careful spending habits, business management and leadership, and, even further, the joys of philanthropy.
When properly managed, wealth can grow a business and family, providing opportunities that go beyond the immediate. With common goals and a shared understanding of individual needs, an integrated multi-generational plan will go a long way to preserving and growing the wealth generated by a family business so that individual family members can pursue their unique interests while contributing to shared financial and philanthropic goals.