How to Keep Your Family Wealthy

We are in the midst of a historic transfer of family wealth: Right now, $1 trillion is being passed to heirs every single year In all, Baby Boomers are expected to bequeath $30 trillion to their heirs over the next 30 to 40 years. But if history is a guide, this story won’t end well. In 70% of cases, family wealth does not make it past the second generation, according to Sloan Management Review. The old saying, “shirtsleeves to shirtsleeves in three generations” is all too accurate.

To help our clients beat the odds, Optivest Wealth Management has launched a hands-on Family Wealth Advisory program to evaluate and improve families’ readiness to transfer wealth. Optivest starts with a few simple questionnaires to evaluate readiness. Then the experts at Optivest guide participants through a three-step process tailored to families’ specific needs:

• Organize their information on the OptiWealth online financial aggregator platform;

• Lead clients through a thought-provoking exercise in understanding and articulating their personal legacy;

• Engage deliberate tools for the transfer of a family’s legacy, including assets, to their heirs.

Why doesn’t family wealth last? The biggest reason has to do with family dynamics: the thoughts, emotions and actions present when family members interact with each other. In too many cases, broken trust and communication leave heirs ill prepared to steward their newly received wealth. Lack of appropriate “practice” managing wealth is another concerning factor that can stifle subsequent generations.

Having significant wealth to transfer can be a satisfying marker of success. But studies show that parents have serious concerns about entrusting large amounts of money to their children. According to the U.S. Trust Survey of Affluent Americans, the biggest concerns include:

• “Too much emphasis on material things” (65%)
• “Naïve about the value of money” (55%)
• “Spend beyond their means” (52%)
• “Initiative could be ruined by affluence” (50%)
• “Won’t do as well financially” (49%)
• “Hard time taking financial responsibility” (42%)

Optivest’s program, led by Chief Executive Officer Mark Van Mourick, is geared toward addressing such concerns and helping to instill confidence in parents and children alike. The program includes an estate and tax-planning document vault, white papers, books, workbooks, family meeting outlines and personal coaching.

Mark is uniquely qualified to lead the Family Wealth Advisory program. He has invested hundreds of hours educating himself alongside America’s wealth-transfer leaders at the Institute for Preparing Heirs, Tiger 21 and the Half-Time Institute.

Just as important is Mark’s 37 years of professional experience working with wealthy families. “I’ve learned important lessons from families who have transferred their wealth well and others who did not.”

Optivest’s program is tailored toward families concerned about passing wealth on to children who are less than well-prepared. Please contact Shannon Kavlich to learn more: Email [email protected] or call 949.363.8686

Please also view our Family Briefing & Wealth Transfer Webinar by clicking HERE

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