I recently spoke with a happy family. Family members are very eager to share me some of their families in their journey to become the work has been carried out “aggressive.” And, in fact, I would say that they do some really great things, especially the transparent and open communication around the establishment, while working to prepare successors.
However, I’m curious. I want to know why. Why is this so important to them? Why do they make every effort to set foot on the course of their families intentional? The reaction is quite simple: “Money is toxic.”
You see, this family of nine is worried about one of two things: how their wealth will affect their family members. And they want to take active measures to avoid Institute EAD rights and the ability to create the environment. Does this sound familiar? I know a lot of people might feel the same when it comes to their own families.
Why is the wealth of a magnifying glass?
Although there is more money, can definitely make your life easier in some ways, it can get very complicated family relationships and amplify them, especially for significant family wealth. For many families, members or affiliates owned and controlled thoroughly assets; however, a lot of wealth in the family, to distinguish their characteristics, their assets are often intertwined. Other vehicles, such as, most of the assets are in a family or closely held companies, family trusts, family limited partnership, investment accounts or need shared decision-making. The family of a “financial life” a combination of their “family life” and had a degree of complexity increase.
Decisions, Decisions …
This complexity into various economic decisions must be made wealthy family. How to protect and develop the assets of the family, then there is on the maintenance and use of assets such as decisions financial decisions houses, cars and boats and planes possible.
Wealth offered is not available to other people select the host – selection around education, tourism and lifestyle, each involving a range of discrete decisions.
Some of my decisions and issues faced by customers including their children (there are many!):
- How do we DEF National Bureau of Statistics of the family?
- Who is included and the aim?
- Tell us what is the extent of the members of our family wealth?
- When and how do we tell them?
- How much we give our children and other family members, when we gave it to them, we know how to prepare them what to do with it and how, once they understand it?
- How much is enough?
- How can we make our families to take advantage of all, let our wealth, it does not define who they are and create awareness of their rights?
- Do we treat children are equal or fair?
- How we use our wealth to help others, support the charity, we care?
- How do we ensure that our financial wealth today serve the family, as well as to stalk ations it?
What
Consider the need for a very rich family all the usual problems, examples of these non-financial decisions.
Everyone has the demand
A strategy of aggressive home use, helping them to relevant knowledge, use, management decided to invest and manage its assets navigation – and affect their wealth in their families – is “systems thinking.”
The results enterprising families recognize that in a group of at least three interrelated systems, their financial and family life combination.
- Home System – wherein all family members as part thereof.
- the owner or creator of the system – it is up to those family members who actually have benefited from such a collection of all family members.
- Enterprise System – This refers to a business, other assets jointly owned, or even just wealth has been used as a tool to achieve common goals.
Complexity each
- who make up the system have different priorities, interests and needs: from the fact that the institution of the family business produces. In the range of perspective produced a series of basic household needs dialogue of these differences.
- Different priority overlapping configuration such systems.
- Family members play different roles with respect to telecommunications equipment manufacturers in each of SYS.
- Per family member role plays may change over time.
Let us look at a few that demonstrate these complex example.
If the system family business in key assets is a family operation of business, how do you see the main interests and priorities master position may be (shares of those who owned businesses, but not within the scope of business operations)? Their interests and priorities of how those may be from a different position in the enterprise (those who work in the enterprise, but not all)? This can be a challenge, not invested time and energy fighting at home with the family dynamics of the classic scenes.
As an owner, you can give priority to profits and dividend distribution. As a non-business owner to work – may also be the manager of the enterprise – you may be too prioritize profits, but profits may be required reinvest in growing the business rather than distribute them.
This is not an unusual situation, as it relates to the owners and employees, except when the person in question is a man, their relationship independence business. They will see each other at family gatherings. They can even live in the same household. This results in a potential difference between the enterprise and spread to the negative impact of family affairs – and vice versa.
May not even have any real conflict, as it relates to business; relative to the conflict may be pure family problems. The plane CHallenge then becomes how to ensure that their family business difference is not contagious.
When you think of the complexity of the system, and draw out of this relationship becomes apparent. When you consider that these relationships may change
Greater challenge here. A family member may not be in today’s business ownership, but their ownership interest and mature inheritance may change.
At any given moment, family members must consider which role they are viewing the situation and play the interests of all parties.
You have identified your system to fit your family business and , in which other people within your family with you? What are the implications Oukai system for your business in your family will gather from Lo Wu?
When you stop to admire these circumstances the degree of complexity, it is easy to understand how families are falling into misinformation, misunderstanding and mistrust, as in the end of the third who lost most of their family’s wealth the next generation – Why enterprising family to spend time thinking about and planning, these potential difficulties.
In my previous column ( “The right plan can bond with their families better than super glue”, “My family drives me (financial) nuts” and “stop pushing my buttons! Family relationships tight, you can prevent long-term planning “), I shared research shows the vast majority of the reasons for the generation of wealth transfer failure is non-financial . One kind dditionally, I pointed out the consequences that may exist, if the family does not fulfill highly specific non-financial factors related to their lives in. We also discussed how you can become an enterprising family and talked about how emotionally complex family systems, and grow. Now, we looked at some of the unique financial wealth and how to navigate the complexity of their families.
The next step how to go
Have to help your family to create key concepts close to the family dynamics framework. We will continue in the coming months by exploring:
- Multiple dimensions
- Wealth, or “family capital” rather than see the wealth, because only financially oriented
- Next: how to start your journey in becoming Enterprisin G family.
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