SPONSORED | juliusbaer head of wealth planning Roger Stutz highlights reserving wealth for one or more lifetimes requires long-term, strategic thinking.
Some inheritors are expected to manage not just cash but family businesses too. For families whose primary source of wealth has been a family-run business, it’s prudent to consider whether this business is the best reserve of wealth going forward.
To preserve one’s lifestyle, it might be necessary to extract capital from the business or sell — fully or partially — to ensure adequate cash flow. If pursuing the family business makes sense, and if the next generation is unwilling or unsuited to taking the reins, seeking external leadership such as a CEO may be appropriate.
Think about how future generations will carry on your family's legacy, preserving not only wealth but also values that have the power to stand the test of time and create positive impact.Just like markets, family dynamics are hard to predict, so it’s just as important to hedge against potential family disputes as it is against global events.
When it comes to wealth erosion, there’s truth in the adage “shirtsleeves to shirtsleeves in three generations”. More often than not, future custodians of wealth need guidance on how to preserve what their elders have accumulated. There are many steps families can take, but some are more important than others.Great fortunes are often lifetimes in the making, so it stands to reason that one would want to preserve this wealth long into the future.
About the author: Roger Stutz is head of wealth planning at Swiss wealth manager Julius Baer. Picture: SUPPLIED: Some things in life are difficult to discuss, such as death, divorce, and remarriage. Still, they are relevant for wealth preservation. Additionally, in cases where large-scale wealth generation has ceased, future generations may need to adjust their lifestyle as funds become diluted through inheritance.
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