Four tips for preserving your family’s heritage

There are many resources available to investors to help them build a legacy that can be passed on to future generations, but unfortunately there is less teaching them on how to preserve this wealth. Here are four tips from Fisher Investments Europe to help secure your family’s wealth.

Start talking about money

It’s not always easy to talk about money as a family. However, avoiding the subject can seriously reduce the chances of successfully passing on your wealth to the next generation. Depending on the person, money may have a different meaning (status, security, influence, control, etc.), making the question difficult to discuss.

Many wealthy individuals simply do not know how to talk about money with their children and grandchildren. They often fear the change of attitude that might happen to their heirs if they know more about the family heritage, or fear what might happen to their fate when they lose control of it. The process can be daunting, but learning how to educate the next generation about money will help you a big favor. If young people don’t always have the same level of financial knowledge and skills, that doesn’t mean they don’t want to learn how to manage their money responsibly.

Start small and deliberately develop an understanding of the topic within your family. Important questions to consider include the amount of money, financial goals of the generation, your family’s principles, budget management, and planning investments. It is important that these conversations about money do not happen on an ad hoc basis. On the contrary: regularly talk about money with your family.

Involve everyone in family meetings

One of the best ways to help with the conversation about estate planning is to host a family reunion. Thoughtfully, it can provide an opportunity for everyone to participate in the process.

To prepare for your family gatherings, set the agenda to meet their goals and needs. The best practices below can help you organize a successful family reunion:

  • Set an agenda: As you prepare this agenda, ask all family members for their ideas and questions. You can also include topics such as your family values, education, investing, charitable goals, etc. Family members may be more or less interested when it comes to money. Try to include social interactions after your meeting to keep everyone involved.
  • Choose a location for your meeting: If possible, think of a neutral place, without specific connotations to your family. Travel expenses will be borne by the family patrimony, to alleviate any fears related to the cost of attending the meeting. Depending on logistical constraints, virtual meetings are also possible.
  • Establish a regular schedule: Organizing regular family meetings will help your loved ones realize the importance of the topic. Start by establishing an initial calendar for the next 12 to 24 months.
  • Specify the terms of participation: Joining all family members will help them gain ownership of the ultimate goal: planning for the financial well-being of those around you. In addition, the diversity of points of view can bring important and unique perspectives. Encourage respectful and active listening and participation.
  • Take notes: Monitoring the meetings helps to make those who attend more accountable. Send a copy of these notes to family members after the meeting.
  • Develop an action plan: Set a project timeline, outline individual responsibilities, and tasks and plans that need to be followed in the family. Always think of the unexpected, keep your loved ones informed of new developments on the topics discussed and, after the meetings, consider asking what improvements can be made.

Promote lifelong financial education

Financial literacy (which is not always present in all members of a family) is essential for the success of the family patrimony delivery strategy. So it is not surprising that the generation that inherits wealth is more likely to spend it more freely than the generation that gets it. Fate comes with great responsibility. Teaching your family best financial habits can help maintain your family’s wealth.

You don’t have to send your whole family to business school to gain financial skills. Emphasis should be placed mainly on simple and effective lessons. Provide materials, such as financial education manuals, videos, and online courses, make them available to your family, and organize skills training sessions and workshops for your loved ones. life to attend together.

Scheduling meetings with your accountants and financial advisors will help everyone get a clearer picture of your family’s current financial situation, plans and possible strategies for the future. Fisher Investments Europe invites you to organize financial education discussions with the help of a professional. A professional can also help dispel your doubts and answer your questions.

Finance future growth for sustainable prosperity

Encouraging family members to take an active role in managing and growing their wealth helps to better understand the value of money. This could include, for example, joining an existing family business, funding a new business or investing in the financial markets.

Many people who inherit great wealth do not know how to invest properly. People often approach their investments too carefully, which often leads them to keep large portions of their wealth in cash or in so -called “safer” securities, such as bonds. After all, their inheritance is usually more money than before, so is their willingness not to take too many risks. Fisher Investments Europe believes that the advice of a reputable financial professional can benefit heirs with little investment experience, pointing them in the right direction to strategically grow their wealth.

Inheritance from an inheritance can change the life of a family, but it is important not to underestimate its durability. Careful communication, financial education and strategic planning will ensure that your family’s wealth will last for generations to come.

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Fisher Investments Europe is the trading name used by Fisher Investments Luxembourg, Sàrl in France (“Fisher Investments Europe”). Fisher Investments Luxembourg, Sàrl is a limited liability company incorporated in Luxembourg under number B228486 and regulated by the Commission de Surveillance du Secteur Financier (“CSSF”). Its registered office is located at the following address: K2 Building, Forte 1, 2a rue Albert Borschette, Third floor L-1246 Luxembourg.

This material reflects the general views of Fisher Investments Europe and should not be considered a personal investment or tax recommendation or a reflection of client performance. There is no guarantee that Fisher Investments Europe will retain these opinions, which may change at any time if new information or analysis is communicated here or if they are reviewed. The information contained in this document does not in any way constitute a recommendation or a prediction about the evolution of market conditions. These are provided for information only. Current or future market conditions may differ significantly from those presented here. Further, no warranty is made regarding the accuracy of any assumptions made for the purposes described herein. Investing in financial markets involves the risk of losing all or part of the capital invested, and there is no guarantee that this amount will be recovered. Past performance is not a guarantee or a reliable indicator of future performance. The value of your investments and the income from them can change with changes in financial markets and global exchange rates..