Invest in your family’s future

 In News

Intergenerational wealth is simply investing in your family and their future. It’s an area of finance not commonly discussed but will grow to be increasingly important within the next 15 years, when the baby boomers move into retirement. To ensure your family’s wealth transfers smoothly to the next generations, it’s important to start seriously considering setting up a plan, now.

The idea is to protect and grow the wealth you’ve generated in your lifetime, pass it to on to the next generation to continue its growth, spending only a portion of it in your lifetime to rather than losing it all. It’s a matter of thinking in the long run; in decades not months or the next few years. The 1800s saying “shirt sleeves to shirt sleeves in three generations” still applies today; where you have the first generation who work hard and build the wealth, then the second generation spend it, taking the cycle back to the start to start again.

The fear is that the future generations in your family won’t maintain the traditions and spend all the money you worked hard to provide them alongside not knowing if they are prepared to take on the responsibility that comes with managing intergenerational wealth. When you pass on your wealth you also pass on the leadership which is why MW Lomax have set up a plan to reduce the risk of your fears coming true:


Understanding the Purpose

It’s important to define the family vision and values. Writing everything down, including family assets, helps to ensure all family members have a mutual understanding and agreement regarding the purpose of wealth; to understand the importance of growing family wealth rather than using it when it’s inherited by the next generation.


The Family Plan

Have a clear strategy in place that is designed to preserve and grow the family wealth. All family members should work together, hold and invest specific assets, moving towards the outlined purpose above.

Make sure you cover family governance, succession and estate planning. Outline risks that could potentially arise and have a clear structure for each family member’s role on how to tackle an unforeseen risk.

Including an agreed level of focus, time and capital to making a contribution in the community in which all family members are passionate and dedicated to. It’s encouraged to also document it into the family wealth plan.


Roles & Opportunities

Give all family members the opportunity to participate in managing the family’s assets. Include the next generation by clearly defining their roles to educate and encourage them to embrace the purpose and plan that they will eventually manage.

Schedule regular family meetings to discuss issues of importance.


Trusted Advisors

Bring in experts who are constantly updated with industry changes that can help you structure and change your plan when needed. For family wealth that has and will be passed on, it’s important to have an advisor who knows the family, their roles and understands the purpose and strategy the family has put in place.


The best way to grow your family wealth is through investing your money for the long term and there are a number of ways to invest your money. Have a MW Lomax advisor put the best strategy in place that suit your lifestyle and level of comfort with risk. To put a plan in place, contact our Melbourne office on (03) 9866 5888 or Sydney office on (02) 8404 6700 to see how you can start growing your family wealth.


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