Publisher's Synopsis
Over the next several decades, there will be a great migration of inherited money flowing from wealth "creators" down to their children and grandchildren. Some estimates of the amount in motion from the Baby Boomer generation (G1) peg the amount of the financial migration at nearly $59 trillion! While some of that shockingly large amount will find its way to charities, taxes, and the like, the majority of it will find its way to a generation of children (G2) and grandchildren (G3). Therein lies the problem. The G2 and G3 generations are unprepared to receive and responsibly manage the wealth. As a result, through poor decision-making, naivete, and youthful inexperience, this wealth will likely be wasted, flushing the hard work and legacy of G1 wealth creators down the drain in spectacular fashion! In fact, there is already a global phenomenon of wealth transition failure between generations. For example, it is typical for nearly 70% of first to second generation wealth transfers to end in failure (as defined by complete wealth dissipation). Furthermore, a full 90% of wealth transitions go awry by the time the 3rd generation inherits, completely wiping out the financial legacy G1 strove to provide to their heirs. Strangely, this is a global phenomenon, transcending geography, nationality, and cultural upbringing. How to Pass Your Wisdom Before Passing Your Wealth shines a light on why it is so easy for this lifetime of wealth created by G1 to be dissipated by subsequent heirs. There are unique and special challenges that go along with successfully transitioning wealth from one generation to the next. This lack of preparation is the financial equivalent of tossing a young child in the deep end of the pool and hoping they can figure out how to swim before drowning! More importantly, the book provides a pathway that G1 wealth creators can take to systematically prepare G2 and G3 inheritors to responsibly manage the wealth that is eventually coming their way, thus protecting the legacy of hard work and sacrifice which created it to begin with. An equally important benefit of the responsibility building methods outlined in the book is the development of family unity, harmony, and trust. This is the legacy we all dream of for our families! To have our life's work respected, protected, and responsibly managed; and to have the financial benefits of that hard work be a continual blessing (not a curse!) to our children and grandchildren over time. That is the mission of this book. To provide a vision, motivation, and the practical steps necessary toward the development of a stewardship mindset in the lives of those who have created wealth and those who will eventually inherit it.
