Prepare your family and heirs to take on the responsibility of wealth.
Our family office clients are high-net-worth individuals. When they are no longer around, that significant wealth is going to be passed on to the next generation. Assets and maybe even a business will then be in the hands of others. This wealth won’t come with an instructions manual, however, so one can’t assume they will be fully prepared for this responsibility.
Ensuring your future family has the education they need to succeed is one of the many privileges of being financially savvy. Incorporating a next-generation education plan will ensure that your family members are ready for the responsibility.
When working with our family office services, we are ensuring that you are on track to grow your wealth for not only your lifetime but for generations to come. In order for a family to find success in increasing their human capital, individuals and families need to prepare the next generation to take on the responsibility.
Goals may include how to obtain wealth, grow it, where to donate it, and properly spend it. The main goal is to create a healthy relationship with money with the next generation in your family. We can prepare a full, hands-on plan for you and your family to ensure future success and growth. No two families are the same. Each has their own goals, values, assets, and unique situations. Because of this, there’s not one plan that can be used across the playing field. Having a one-of-a-kind approach to wealth is key.
Here is an outline of what educating future generations may look like:
• Mission Statement- Having a mission statement will allow future generations to keep wealth in perspective. The wealth does not define the family, nor does it mean that they just have a lot of money. It will also allow outside advisors a look at the values of a family. This statement should be clearly written and simple.
• Define values- Having a discussion with all members of the family to determine its core values will allow everyone to be on the same page. It is important that all heirs be involved because it is not about restricting actions but, rather, establishing the values that the family all share.
• Assign roles- Determine how everyone feels about inheriting wealth and gauge their interests. This will help avoid giving a family member or heir a responsibility they are not interested in taking on or are not ready for. When roles are assigned, then one can work on ensuring that the person has the proper education to take on that work.
• Estate Plan- It can be an uncomfortable act to think about one’s own mortality but estate planning is important when preparing for the inevitable. It plays a crucial role in transferring wealth because it saves time figuring out asset allocation and other important information.
• Do not transfer wealth based on age- Many think that when an heir becomes of a certain age, they will be ready to take on the responsibility of wealth. This is not always true. Lay out rules that determine when wealth is inherited based on certain goals being met such as earning a college education or landing a job.
• Get involved in philanthropy- Philanthropy allows deeply motivated individuals to make a contribution to an organization that aligns its values and goals with their own, or creates institutions that bring a change to the world that they wish to see. It can also be a teaching lesson for heirs by giving them a platform to put the family’s values into practice. It also gives younger generations the knowledge that wealth serves a purpose beyond one’s own comfort and happiness.
• Communicate- This may be the most important part of the outline because it greatly affects how all of the other steps will play out. Keeping a clear and honest line of communication can achieve family cohesion and allows all members of the family to have a say. The transfer of wealth will go much smoother if everyone is on the same page.
It can be challenging to identify the methods that will prepare the next generation to appreciate and properly utilize the family wealth. Using our Next-Generation Education services, we work with families to guide discussions involving values, wealth, and philanthropy, and design a program specific to your goals and values, unique to your family.
Preparing your heirs for this responsibility should go beyond “being good with money.” When we think of someone who is bad with money, it’s often a person who inherited a large amount of wealth and quickly spent it, without planning. Being good with the money would mean just doing the opposite. Next-generation education will help you get your heirs much further.
Goldbach Capital Family Office
It is never a bad idea to ask for help. No one expects a single person to take care of their finances, manage a portfolio, saving for retirement and education for future generations, manage assets, and more on their own, especially when they have a large number of expensive assets.
To remedy this, Goldbach Capital offers family office services to clients and families with assets under our management in excess of CHF 10 MM.
Goldbach Capital has the knowledge and resources to become the trusted partner of wealthy families. We offer a comprehensive range of services, by combining proprietary expertise with an external pool of first-class advisors.
Each client can decide which modules he wants to engage Goldbach Capital on. Thanks to its efficient and cost-effective solutions, Goldbach Capital is a credible alternative to existing or projected in-house organizations.
Goldbach Capital utilizes close interaction with our clients as the heart of our process in order to fully integrate each family’s vision and core values. We pride ourselves on being a fully independent entity, able to activate all external resources and competencies needed in order to deliver services with asset protection, growth, and monitoring, life simplification, and cost-cutting at the forefront of our strategies.