How can a family office help keep wealth across generations?
Short answer: He describes a family enterprise office for discussing family roles and a donor advised fund that makes repayable loans to charitable projects.
The speaker presents at a wealth management event.
Include children in planning
He says some business owner families have not included their children in financial, estate or succession planning. He recommends managing expectations and making the process less secretive.
Discuss family roles
He calls the family enterprise office a business school. The family can discuss who controls what and how mom and dad see those roles.
Lend charitable dollars again
A donor advised fund makes a loan to the ranch, which would operate as both a charity and a for profit business. The loan is repaid with interest, so the fund can lend those dollars again. He says a family can reuse a dollar instead of giving it away once.
"the next generation does not know how to manage wealth and they're not being taught how to manage wealth"
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Anu Aga: Check before you give. Study the work of an NGO, ask more questions, and visit it if you can. This leads to an informed decision.
- Tim Draper: Make your customers your sales force. Hotmail put a message at the bottom of the screen inviting people to get free email. It spread to 11 million users.
- Don Wenner: Commit to scale. Don's major turning point came when he decided to build a great company that makes an impact. Making money and being successful was not enough for him.
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How can a family office help keep wealth across generations?
He describes a family enterprise office for discussing family roles and a donor advised fund that makes repayable loans to charitable projects.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.