Over the past few weeks a couple clients have asked me about how and when to share their family wealth and social capital plans with their children and other family members. This of course is different for each person and each family so there is no hard and fast rule. There is however some general things that all wealth creators should consider when planning for the transition to the next generation or out into community:
1. How much is enough? As Warren Buffet said, "I want to leave enough for my kids so that they will do something, but not so much that they won't do anything." Allison Maher from Family Wealth Coach calls it Knowing Your Number. What do you need to live on and your inheritors to live on to be comfortable, what do you want government to take in taxes and what do you want your community to receive.
This morning I gave the keynote address at the CAGP conference in Banff, Alberta. The presentation is on Next Generation/Rising Generation philanthropists. Below is a copy of the transcript and the slides.
Partners In Health (PIH) is a ground-breaking global health and social justice organization that brings high quality health care to some of the poorest areas of the world. They do this not as an act of charity, but as a fulfillment of fundamental human rights.
For the second year in a row, Dexterity Consulting will be partnering with REAP Calgary to bring a social captial discussion as part of the Down to Earth Week in Calgary, Alberta April 11-15. The Capital for a Cause summit is being brought to you in part by Dolan Wealth Management - Raymond James and Toniic. We started exploring this topic when the price of a barrel of oil was still fairly strong. Since those initial planning days, the Canadian dollar has tanked, oil is still trading at $40/barrel and tens of thousands of people have been laid off. So why are we talking about social capitla management now? It might seem counter-intuitive. It is for this very reason that we are undertaking this discussion at this time.
In Canada it is the Family Day long weekend. Over the past two generations the make-up and definition of family has shifted from a nuclear - Mom, Dad and 2 kids to any combination therein including same-sex couples (thankfully our legislation is catching up with these shifts in family dynamics).
Before you say “I do,” it’s a good idea to sit down and discuss your finances. Even if you’re already married or in a committed relationship, scheduling a regular “financial date” to proactively talk about moneywill help avoid any unpleasant surprises in the future. Here are some ideas of what to talk about: