Family Dynamics

Question 1

Family wealth timelines

Answer 1

70% wealth lost by 2nd generation
90% wealth lost by end of 3rd gen
<10% transfers to 4th gen

Question 2

Reason for wealth timeline

Answer 2

60% due to breakdown in communication

Question 3

Reas

family wealth research

Answer 3

2/3 of wealth people expressed desire to engage in better communication. 1/3 actually do it.

Question 4

Immigrants to the land of wealth meaning

Answer 4

80% of wealthy americans created it themselves

Question 5

Natives to the land of wealth meaning

Answer 5

20% of wealthy americans. 90% change advisors with 2-3 years of family wealth transfer.

Question 6

SEC family office rule

Answer 6

family offices excluded from advisers act reg. A FO only gives advice to family clients, wholled owned/controlled by families, doesnt hold itself to be a public investment advisor.

Question 7

Family Education Plan (FISH)

Answer 7

Financial capital
intellectual capital
social capital
human capital

Question 8

Financial Education - Competency- ESSIS

Answer 8

Earn, Save, Spend, Invest & Share

Question 9

Family Governance Goals (THINK SUCCESSION(

Answer 9

1. Define process for family decision making
2. Clarify family roles, rights and responsiblities
3. develop policies and procedures
4. Engage and empower next gen

Question 10

Steps for effective family meeting

Answer 10

1. obtain agreement
2. establish purpose and goals
3. design collaboratively and creat expecations
4. clarify expectations and format
5. obtain info and invite participants
6. creat a safe environment