“Shirtsleeves to shirtsleeves in three generations.” The saying is true, and the cycle is real. As the expression indicates, after the buying, the building, and the selling, there’s rarely anything left of a family’s wealth for the fourth generation. Multi-generational planning focuses on breaking that cycle by allowing your heirs to have the knowledge and stability necessary to build a foundation for future financial success.
At the core of successful wealth planning is a family that’s intentional and can arrive at a vision incorporating values consistent with what the family strives for, works toward, and tries to achieve. The first step towards a multi-generational wealth planning strategy is to get everyone on board with a single plan. Everyone must come to the table, including outside trusted advisors—such as financial professionals, attorneys, accountants, business partners, and even charitable organizations—so everyone works collaboratively and is on the same page.
Begin with a plan. Understand the family’s history, create a family charter, and be open to communication and flexibility regarding future wealth management.
- A family charter is a document that describes the values, vision, mission, roles, and responsibilities of family members. It should also contain sections on the charter’s purpose, how it’ll change throughout the generations, and which members have decision-making capabilities. Lastly, a family charter should detail members’ accountability, participation, and, most importantly, transparency.
- Look past the tangible aspects of financial planning and become genuinely involved in the overall well-being of future generations. It’s this new perspective that allows a family’s wealth to take a giant leap toward long-term sustainability. Explore the “dimensions of wealth“—financial, human, family, structural, societal—as a means to clarify the values, ideas, and traits your family wants to pass along to future generations.
Once the discussions are on track, it’s time to incorporate a wealth-transfer plan. Successful plans take on a holistic approach that should include:
- Retirement planning
- Estate planning
- Tax planning
- Charitable giving
- Business succession planning
Creating and implementing a multi-generational plan is no easy task. It takes a lot of hard work, long hours, family cooperation, and professional guidance to see it come to fruition. The satisfaction that comes with knowing your family will be financially stable for future generations is the priceless reward for completing the planning process. Every family is different, and your circumstances are unique, so give us a call at (540) 720-5656, and we’ll help you start planning.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.