Wealth comes in many forms of capital albeit financial capital tends to be the dominant one that occupies every person’s mind when it comes to planning, especially in the beginning stages of wealth accumulation. Tax, financial services, retirement, and investments all focus on preserving and growing financial capital. However, even that growth did not happen in a vacuum. Family human capital is very much integral to building the financial capital and is very much a force to reckon with if you are to successfully sustain wealth among and across generations. In many ways even more so after moving beyond the original wealth creators to multiple branches of families.
A long term strategy for nurturing family human capital is essential if it is to remain effective in the continued growth of financial capital. Communication, trust, conflict resolution, wealth education, group decision making, self-identity and life purpose are some of the challenges family members inevitably face when it comes to shared wealth. A family strategic plan focuses on defining a vision, mission, shared purpose and core values; developing practices for staying connected within the extended family; creating structures for decision making; learning to collaborate, compromise, and manage conflict with one another in a healthy way to preserve family relationships; and committing to educating rising generations in support of their stewardship goals. In other words, keep your eye on the long game.
Want to read more?
Please login below. If you don't have an account, feel free to sign up and get access to the entire WealthCAP HUB®.