Don’t leave future generations in the dark.

Having a thorough wealth management plan and a healthy portfolio means nearly nothing without a plan for the future of that wealth. Many think that future planning ends with a retirement plan. While a retirement plan will ensure you set enough aside to have a worry-free life, it does not prepare your heirs to take on your wealth when you are no longer around to manage it.

One such plan is an 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.
When an estate plan is followed correctly, all assets are allocated to the proper individuals, personal arrangements are taken care of, and your family does not have to make hard decisions regarding where to place wealth. So, what happens once the wealth is in their ownership? Will they know what to do with it? Creating a plan for the future of your wealth and educating future generations on how to manage assets will grant peace of mind on what comes next for your family.

Family Governance

One way to prepare the future of your wealth is creating a family governance. A family governance is ideal for ultra wealthy individuals who have businesses that will be passed onto future generations. Not only will a family governance ensure a successful future of the company, it will also clarify the roles of each person, the values of the family, and how prepared the family and heirs are to take over wealth.
A family governance plan sets clear boundaries that will create harmony between family members, a focused business, and easy transition from one generation to the next.

Handing down wealth to future generations

A significant part of a family governance is making sure beneficiaries are fully prepared to take on the wealth the head of family is passing down at the time of retirement or death. High networth individuals face a challenge to educate their heirs on the power of wealth. There have been many cases where wealth has been passed down to those who are not ready and have lost major fractions of savings and assets that others worked hard to grow.
Wealth does not come with an instructions manual so one can’t assume they will be fully prepared for this responsibility. Wealth does not define the family, nor does it mean that they just have a lot of money.
Educating beneficiaries on wealth management gives future generations the tools they need to succeed.
Goals for educating future generations can 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 and 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. Creating a one-of-a-kind approach to wealth is key. Creating a wealth education plan will include the following steps:
• Creating a mission statement
• Define values
• Assign roles
• Do not transfer wealth based on age
• Get involved in philanthropy
• Communicate

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 the family all shares.

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 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, 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 at money may be person who inherited a large amount of wealth and quickly spent, without planning. Being good with the money would mean just doing the opposite. Next generation education will help you get your heirs much further.

Leaving a legacy

With significant wealth, individuals have the opportunity to leave an impact for when they are no longer here.
Philanthropy is a gateway motivated individuals and families to make a contribution to an organization that aligns its values and goals with their own, or create 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.

Preparing for the future with the experts

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. When working with our family office services, we are ensuring that our clients are on track to grow their wealth for not only their 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.

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 competences needed in order to deliver services with asset protection, growth, and monitoring, life simplification, and cost cutting at the forefront of our strategies.