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Wealth ties people together in ways that blood and marriage do not. Wealth amplifies every interpersonal issue among parents, children, siblings, in-laws, trustees, beneficiaries, and extended family members. Even when wealth is well managed, family relationships are frequently not being managed at all. Personalities, histories, and cultural norms differ through the generations. With the passing of time, marriages create new family branches, and disperse family members geographically.
It is no surprise that worldwide statistics reveal family wealth is largely dissipated over 75 to 100 years, an unfortunate trend which also reflects the fate of 95 percent of family businesses. Historically, the following principle is operative for those family companies that create wealth:
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The first generation creates the wealth.
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The second generation begins to dissipate the wealth.
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The third generation either depletes the remainder in their lifetime, or is back to working for current income.
Shirtsleeves to shirtsleeves in three generations.
Strategies’ vision and goal is arresting and reversing the trends which plague families in this position, to preserve wealth, enrich the family experience, and enhance the quality of life for all family members for generations to come.
