Preparing the Next Generation for Family Office Roles
Module 12 of Richard C. Wilson's short series on starting a family office focuses on next generation planning.
He describes ways families can involve children in work, share family values, set expectations for financial support, and discuss wealth plans early.
In this video: Richard C. Wilson (Presenter)
What they said
- Wilson's options for early responsibility. Wilson says families can involve children in the business, help them gain experience outside it, or start with one small residential rental. These are ways to give them an early role with room to learn. (at 0:32)
- Wilson's lemonade stand example. Wilson says his daughters' lemonade stands brought in $55 per day and, in a later stand, $250 per day in 90 minutes. He used the experience to teach them that money comes from creating value and making sales. (at 1:00)
- Wilson's family values example. Wilson says his family set ten values and posted them above the kitchen table. He uses those values when making decisions about hiring an au pair, where the family will live, and discipline. (at 3:17)
- Wilson's planned support for his daughters. Wilson says he and his wife plan to pay for their daughters' undergraduate and graduate education, medical emergencies, and a first home down payment of up to $150,000 or $200,000. He says they otherwise won't receive money as an inheritance. (at 5:07)
- Wilson's family fund lending approach. Wilson says the family fund will lend to children pursuing a business or real estate project, with the child putting some of their own money at risk. Family money would also be at risk, with the deal approved by whichever elders are alive at the time. (at 5:36)
In their words
"I didn't want to spend $400 on it just because they asked for it."
"Talk to them about contracts you're negotiating, fees, investment structures, what you've learned while creating your wealth to pass that down through stories"
Why it matters if you are building or preserving great wealth
Wilson says family values guide choices that affect everyone, including where they live. Sharing those values gives the next generation a way to understand family decisions before they take on responsibility for them.
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.
See the data
Frequently asked questions
What employee stories does Richard C. Wilson suggest sharing?
Richard C. Wilson suggests sharing scenarios such as a family helping an employee buy a first home with a bonus they can work off, or paying an employee during a five-month hospital stay.
What follows this module in the series?
Wilson says the next module covers investment in health and well-being, followed by family case studies and a conclusion with next steps and resources.
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.