Four tips for preserving family heritage

There are many resources available to investors to help them create a legacy to pass on to future generations, but unfortunately much less to teach them how to make this wealth lasting. Here are four tips from Fisher Investments Europe to help secure your family’s wealth.

Start talking about money

It is not always easy to talk about money in the family. However, avoiding this topic can seriously reduce the chances of successfully passing on your wealth to the next generation. Depending on the person, money can have a variety of meanings (status, security, influence, control, etc.), which further complicates the discussion.

Many wealthy people simply do not know how to talk about money with their children and grandchildren. They are often afraid of the change in attitudes that could happen to their heirs if they become more aware of the family heritage, or they are afraid of what might happen to their wealth when they lose control of it. This process can be difficult, but educating future generations about money can do you a great service. If young people do not always have the same level of financial knowledge and skills, it does not mean that they do not want to learn to manage their money responsibly.

Start small and intentionally develop an understanding of the topic in your family. Important issues to consider include the value of money, the financial goals of the generation, the principles of your family, budget management and investment planning. It is important that these conversations about money do not happen on a random basis. On the contrary: talk about money with your family regularly.

Involve everyone in family reunions

One of the best ways to help talk about property planning is to organize a family reunion. Well thought out in advance, it can give everyone a chance to take part in the process.

To prepare for family reunions, set an agenda according to their goals and needs. The following tips can help you organize a successful family reunion:

  • Set the agenda: As you prepare for this agenda, ask all family members to share their ideas and questions. You can also include topics such as your family values, educational, investment, philanthropic goals, and more. Family members may be more or less interested when it comes to money. Try to include social interaction after the meeting so that everyone is involved.
  • Choose a meeting place: If possible, think of a neutral place, without a special shade for your family. Travel expenses will be covered by the family inheritance to alleviate any fears related to the cost of attending the meeting. Depending on the material and technical limitations, virtual meetings are possible.
  • Set a regular schedule: Organizing regular family meetings will help your loved ones realize the importance of this topic. Start by creating an initial calendar for the next 12-24 months.
  • Define the rules of participation: Involving all family members will help them take responsibility for the ultimate goal: planning the financial well-being of those around you. In addition, a variety of perspectives can bring valuable and unique perspectives. Encourage respectful and active listening and participation.
  • Take notes: Tracking meetings helps to bring to justice those who attend. Send a copy of these notes to family members after the meeting.
  • Develop an action plan: Set a project schedule, outline individual responsibilities, and tasks and plans that need to be done with the family. Always think of the unexpected, inform your loved ones about new developments in the topics under discussion, and after the meetings think about what can be improved.

Promote lifelong financial education

Financial literacy (which is not always the case with all family members) is important for the success of a family inheritance strategy. It is therefore not surprising that the generation that inherits wealth is more likely to spend it more freely than the generation that earned it. With fortune comes great responsibility. Teaching your family advanced financial practices can help you maintain your family’s wealth.

You don’t have to send your whole family to business school to get financial skills. The emphasis should be on simple and effective lessons. Provide materials such as financial education guides, videos and online courses, make them available to your family, and organize trainings and seminars for your loved ones together.

Planning meetings with your accountants and financial advisors can help everyone get a better idea of ​​your family’s current financial situation, plans and possible strategies for the future. Fisher Investments Europe invites you to organize a financial education discussion with the help of a professional. A professional can also help dispel your doubts and answer questions.

Finance future growth for sustainable prosperity

Encouraging family members to take an active role in managing and increasing their wealth helps to better understand the value of money. This may include, for example, participating in an existing family business, financing a new business or investing in financial markets.

Many people who inherit great wealth do not know how to invest properly. People are often too cautious about their investments, often forcing them to keep large portions of their wealth in cash or in so-called “safer” securities such as bonds. After all, their inheritance is usually much more money than they had before, hence their willingness not to take excessive risks. Fisher Investments Europe believes that the advice of a reputable financial professional can benefit heirs with little investment experience by guiding them in the right direction for the strategic growth of their wealth.

Inheritance can change a family’s life, but it is important not to take its longevity for granted. Thoughtful conversations, financial education and strategic planning will ensure the wealth of your family for future generations.

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Fisher Investments Europe – trade name used by Fisher Investments Luxembourg, Sàrl in France (“Fisher Investments Europe”). Fisher Investments Luxembourg, Sàrl is a limited liability company registered in Luxembourg under number B228486 and regulated by the Financial Supervision Commission (“CSSF”). Its registered office is located at the following address: K2 Building, Forte 1, 2a rue Albert Borschette, Third Field L-1246 Luxembourg.

This material reflects the general views of Fisher Investments Europe and should not be construed as a personal investment or tax recommendation or a reflection of a client’s business. There is no guarantee that Fisher Investments Europe will retain these views, which may change at any time if new information or analysis is sent to it or if it is re-evaluated. The information contained in this document is in no way a recommendation or forecast for the development of market conditions. They are for reference only. Current or future market conditions may differ significantly from those presented here. In addition, no guarantee is made as to the accuracy of any assumptions made to illustrate this document. Investing in financial markets involves the risk of losing all or part of the invested capital, and there is no guarantee that this amount can be recovered. Past performance is neither a guarantee nor a reliable indicator of future performance. The value of your investment and the return on it may vary depending on changes in financial markets and world exchange rates.