In The News Archives. Actionable Intergenerational Wealth Planning Practices - David Werdiger Skip to main content
Category

In The News

Family Office Priorities

Family Office Priorities

By Articles, Familosophy, Featured Posts, In The News, LinkedIn, original No Comments

Family offices (FOs) come in so many shapes and sizes that the term ceases to have specific meaning. It’s simply a set of services provided for a family. The origins of the FO often determine their primary focus: there are plenty of FOs that are simply vehicles for co-investment, or glorified reporting platforms. Having a FO essentially means taking a professional approach to managing the affairs of the family. It’s interesting that 92% of FO…

Read More
Wealth Guilt & Shame

Wealth Guilt & Shame

By Articles, Blog, Familosophy, Featured Posts, In The News, LinkedIn, original No Comments

Wealthy people are a soft target at the best of times. The media revels in sensational stories about wealthy families, especially when things go wrong. And if that wasn’t enough, neo-socialists in the US preach redistribution and question whether the world should have billionaires. The emerging “wealth minimisation” movement encourages inheritors to redistribute “excess wealth” for the betterment of society. In some cases, this is about making up for the “harm” done by the wealth…

Read More
Purpose in Family Business

Purpose in Family Business

By Articles, Familosophy, Featured Posts, In The News, LinkedIn, original No Comments

Family business has positives and negatives – our aim should be leverage the positives and seek to mitigate the negatives. One important distinguishing feature of family businesses is that they can embody a sense of purpose. The original purpose of the business founder may have been wealth creation. However, as the business evolves and additional family members join, it’s an opportunity for the family as a group to discuss and articulate their collective values and…

Read More
3 generation trope

The 3 Generation Trope

By Articles, Familosophy, Featured Posts, In The News, LinkedIn, original No Comments

It’s a most quoted statistic – “just 13% of family businesses survive the third generation” – and it has finally been challenged. It comes from a single study of US manufacturing companies in the 1980s, and for some reason it has stuck and become almost axiomatic. But it is deeply flawed. Most importantly, it never compared family businesses to non-family businesses (family businesses on average do last longer), and it also never considered the reasons why those…

Read More
The future of finance is women

The future is … female

By Articles, Familosophy, Featured Posts, In The News, LinkedIn, original No Comments

Research has shown that in HNW families, daughters were rarely encouraged nor received support to pursue entrepreneurship education. Entrepreneurial families often prepare their daughters and sons differently for their careers. Cultural factors and their associated gender biases may result in the problem being far more pronounced. Things are changing. Some 82 per cent of women from wealthy families expect to inherit substantial wealth over the next 20 years, but 41 per cent of women are…

Read More
Communications 2nd Generation

Communication isn’t important …

By Articles, Blog, Familosophy, Featured Posts, In The News, LinkedIn, original No Comments

Research has shown that 60 per cent of failed intergenerational family wealth transition are due to problems with trust or communication. Communication isn’t important in families. It is everything. If a family cannot communicate, it cannot function as a group. It’s that simple. What does poor communication look like? An absence or lack of communication (e.g. “it’s none of their business”, “they don’t need to know”, “we know what is best for them”) is patronising, infantilising,…

Read More
Fostering Entrepreneurship

Fostering Entrepreneurship

By Articles, Familosophy, Featured Posts, In The News, LinkedIn, original No Comments

Not every entrepreneurship story is “rags to riches”. Many high-flying entrepreneurs came from from upper-middle-class families. While they don’t owe their success entirely to mom and dad, without their parents’ help, be it financial or otherwise, they may have never gotten their ventures off the ground. Research has shown that 75% of entrepreneurs from 48 countries said that their family was involved in starting their businesses. Family money and background plays a critical role when it…

Read More
Family Business - Blood non-Blood

Family Business – blood non-blood

By Articles, Familosophy, Featured Posts, In The News, LinkedIn, original No Comments

Unless your family business is a “mom & pop corner store” (which is more akin to owning a job than owning a business anyway), you will need to have a mix of ‘blood’ and ‘non-blood’ people working in it. As any business matures and grows, there becomes a need for professionalisation and systemisation. While owners may put a high value on the people in the business (especially family), the true value created in any business…

Read More
Ownership & Management of Family Business

Ownership & Management of Family Business

By Articles, Familosophy, Featured Posts, In The News, LinkedIn, original No Comments

Family is (hopefully) for life. If the family business starts to interfere negatively with the relationships in the family, then there is imbalance. Family businesses are challenging because of the overlapping of family, business and ownership (known as the “three circle model”). Researchers from Harvard have extended this into four “rooms” by adding in the board room. Because family members wear multiple hats, are in multiple circles, or sit in multiple rooms, they need an…

Read More
Wealth and Happiness

Wealth & Happiness

By Articles, Familosophy, Featured Posts, In The News, LinkedIn, original No Comments

Q: If the world’s two richest men cannot keep their wives happy, what hope do we have? A: No, that’s not a real question – it’s a meme that circulated following the news of the divorce of Bill & Melinda Gates. Many people with wealth realise that money can’t make a wife (or anyone) happy, but that doesn’t stop them trying. In business, sometimes we decide to “throwing money at a problem”. That means directing significant resources…

Read More