Generational Financial Planning

By: Alexander Roig, January 19, 2017

It's no accident that the word "family" is right there in our company name. Working with families is what we do, and to be most effective, we always try to work with multiple generations whenever possible. Helping families build and preserve their wealth, assets, and legacy is what made us want to get into this business in the first place. 
When it comes to families and money, it's our philosophy that having a trusted, neutral third party is highly important. First, it prevents having to navigate the family finances by trial and error, which can result in costly mistakes. Putting a plan in place that's tailored to your family's needs means you and yours will have confidence that you're on a good path. It also means that when life presents you with a sudden left turn, you have someone to call with questions. 
Money is highly personal, and can easily become emotionally charged. A third party will also help ensure that all family members are on the same page - without one person having to assume the role of telling everyone else what to do. Just as it's probably not a good idea to tell your spouse to eat better or work out more, telling a spouse or other family member to change their money habits leads to conflict more often than not, and rarely solves any problems.
Family wealth is often lost by the second or third generation, and it's our goal to help our client families avoid this trap. We talk as early and often as possible with the families we see about the eventual transfer of the family legacy, whether that's property, a business, an inheritance or other assets. Sitting down with multiple generations together can help the younger family members learn to be good stewards of their family legacy, and then pass that legacy on to even more generations. 
Active involvement in the family finances often results in better communication between parents, children and grandchildren - and a better understanding on the part of the younger generations about how hard their parents or grandparents worked to build that legacy. In our experience, this kind of communication and understanding is a vital component of becoming a good financial steward. Of course, in the unfortunate situation where someone does feel that the next generation isn't quite ready to be trusted with the family legacy, we can help protect those assets in the meantime.
What questions do you have about your family's assets and legacy? Has it been difficult to start productive conversations with your children or grandchildren about money? Let us know. We're always here to help, and serve as that ever-important neutral party. 

Family Financial Partners | Growing Wealth, For Generations ™