Page 39 - Waterfall City Issue 10 October 2023

CREATING SUCCESSFUL

INTERGENERATIONAL

WEALTH

By Nirdev Desai, Head of Sales, PSG Wealth

F or many years, the concept success of previous generations, and

of self-made success was
that a reframing of how to ensure
considered by many to be
sustainable wealth for generations to
the ‘making of the man’,
inability of the 90% to successfully
with each generation expected to come is needed. Notwithstanding the
prove their self-worth by being at transfer their family wealth, there
least as financially successful as the are still 10% of families who are
generation before. However, the successfully creating and passing on
adage “shirtsleeves to shirtsleeves in lasting legacies, and these legacies
three generations” – meaning that often become the backbone of
wealth gained in one generation will economic growth the world over.
be lost by the third – continues to this
day. A recent Harvard Business Review It is this 10% that brings long-
article by Stark and Foley found term value to global productivity.
that 70% of wealthy families According to the latest research by
studied lost their wealth the Family Business Network, family-
within the second generation, owned assets account for 70% of
“...a robust and flexible plan and 90% within the third. global GDP.

that caters for the needs and
aspirations of family units is It is clear from such research What the 10% are getting right
that wealthy families do not
and how we can apply key
invaluable.” appear to be well equipped learnings to intergenerational
to build on the financial financial planning: >

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