Profiles In Generational Wealth

Today we meet the family behind the oldest private bank in Britain.

Now in their 12th generation, they set the gold standard for service:

"In an emergency, we would not hesitate to deliver cash to a client's home."

They are the Hoare family👇 In 17th century England, explosive economic growth brought new demands for financing.

For centuries, goldsmiths were critical sources of funding for new ventures.

To meet new and international demand, goldsmiths expanded their services to providing credit & currency exchange.

Investing family money is very different from personal investing.

I recently helped a family design their long-term investing strategy.

They gave permission to share their story↓ The family recently sold an interest in their business to investors.

They decided to invest the proceeds for the benefit of the entire family.

Problem: How do we invest for 35+ members in 4 generations?

Solution: The Family Investor Allocation

Your family builds wealth by developing one skill that people really value.

Your family preserves wealth by developing people with many valuable skills. Creating financial wealth is incredibly difficult.

It’s critical that children have the knowledge and skills to steward financial wealth for future generations.

That's successful families devise a wealth education plan their children

Family wealth is a long-term game played by long-term people.

To win, you need structures that keep your wealth "in-house".

That's why you need a Family Bank.

Here's how it works: The Family Bank is a wealth structure families use to build generational wealth.

Every family's long-term wealth includes:

• Social Capital - member's relationships
• Human Capital - members & their well-being
• Intellectual Capital - members' skills & knowledge

Building financial wealth isn't just about offense.

You also need good defense, and that means protecting your assets with a risk management strategy.

All families should carry umbrella liability insurance.

Here's a surprisingly common scenario... You're commuting to work and get into an accident.

You exchange insurance information with the other party.

After a quick search of your name, they know you have sufficient assets and decide to sue you for damages.

Profiles In Generational Wealth

Here's the story of a family's journey from humble traders to world-renowned jewelers.

They are the Mellerio Family👇 Mellerio dits Meller, the family enterprise, enjoys lofty status as a premier bespoke jeweler.

The family's brand represents centuries of dedication to the highest levels of craftsmanship.

Now in their 15th generation of wealth creation, the family offers many valuable lessons.

Families who thrive for centuries have a knack for developing wealth creators in every generation.

Children are ahead of the game when they know everything around them was created by someone who wanted it there. Today, most approach the world like a read-only file they can't edit.

But in your family, you want them to have a read-write perspective.

Here's how to help your family’s younger generation see the world as a malleable place:

The Role of Elders In Family Wealth:

To build generational wealth, you need the wisdom and leadership of family elders👇 Historically, being an elder of a tribe was seen as life's greatest honor.

Today, society helps people get as old as possible while doing nothing to help them become elders.

But smart families know their elders are invaluable:

Family Wealth Tip:

The more successful your family is, the more younger generations need to understand how hard it is to create wealth.

Here's how smart families go about it👇 Creating significant family wealth requires unbelievably hard work over a long period of time.

Those who inherit financial capital often have no idea how difficult it was for the family founder to create.

This lack of understanding compounds into bigger issues down the road.

Great reflection question:

“What will you as an entrepreneur regret if you do not prepare your future generations to manage & grow the wealth you pass on to them?”

You'll get the best answer by expanding "wealth" beyond finances to its root: "well-being". What separates personal wealth from family wealth is the participation of your family.

It's a very respectable thing to pass on financial assets to children and grandchildren.

It's a greater achievement to pass on children and grandchildren who can thrive when they inherit it.

Family Wealth Strategies: Ultra Long-Term Thinking

How to develop it and use it to your family's advantage👇 Ultra-long term thinking is the ability to think in terms of generations.

This is the #1 skill of families who successfully preserve their wealth for generations.

It is the difference between renting and owning your family.

Family Wealth Strategies: Tax-Loss Harvesting

The simple strategy that adds millions to the bottom line of long-term investors.👇 I work closely with family investment committees to evaluate their investment strategies.

Wealth-building families are long-term investors with long time horizons.

Tax-efficiency for these families is essential - any tax-savings will compound for generations.

I recommend families use an index strategy for investing their financial independence “bucket”.

This is the allocation set aside to meet their long-term living expenses.

Here's why financial brokers will try to talk you out of it.👇 1. Indexing is not profitable for the investing "industrial complex."

Index funds are a broker's worst nightmare.

Jack Bogle, founder of Vanguard, said it best:

"The problem with low-cost, no-load index funds is that almost all the darn money goes to the investor!"

A big key to success for families building generational wealth is proactive thinking.

It is wise to recognize that very predictable issues will pop up that create friction and conflict.

So ask yourselves: "How should we deal with this when this issue happens?" These could be:
•Critical estate planning issues like medical emergencies that require power of attorney documents
•Shareholders in the family business wanting to sell their shares
•Family members wanting to do other work besides the family business

Profiles In Generational Wealth

Today we meet the family behind one of the world's most important wineries.

Now in their 13th generation of wealth creation, they're a model of the unity and intentionality required to thrive for centuries.

They are the Hugels👇 The Hugel story takes place in the French village of Riquewihr.

From this beautiful area of France, the family exports its prized wine all over the world.

Their commitment to family & quality has remained strong in the face of centuries of instability.

The inaugural 8-week Founders Circle group is more than half-way over.

Working closely with small group of family wealth founders has been a terrific learning experience.

Here's my 3 biggest takeaways so far👇 Most of my work the last 15 years has been advising established families in their 4th+ generation of wealth creation.

In Founders Circle, most are in their 1st-3rd generation and taking steps to ensure future success.

The opportunity ahead for these families is enormous.

Profiles In Generational Wealth

Today we meet the 15th generation family who owns the oldest business in the US.

They are the Zildjian family👇 The Zildjian story is a mixture of Old World charm and New World opportunity.

While the setting will change from Constantinople to Boston, the focus stays the same:

The family & their secret formula to make one of the most recognizable instruments in the world.

Let's dive in.

Here's all the family wealth profiles we've covered together so far 👇 The Laird-Norton Family

https://twitter.com/500YearFamily/status/1595414106831470599?s=20&t=aaLF9yVAVbidi10CVYTwUA

Profiles In Generational Wealth

Today we meet the family behind one of the world's most valuable luxury brands.

Now in their 6th generation, they see the family enterprise as something "borrowed from our grandchildren".

They are the Dumas family👇 The story of the Dumas family & the story of Hermès are intertwined.

Hermès is an heirloom passed down through generations.

What started with an orphaned immigrant's boutique saddlery shop has become one of the most sought after brands on the planet.

Let's dive in.

Profiles In Generational Wealth

Today we meet a family tribe in their 7th generation.

They've mastered the art of blending tradition and innovation.

They are the Klebergs👇 The Klebergs hold a unique place in US history.

Their story is intertwined with the story of Texas and the American frontier.

Today, they own all 825,000+ acres of King Ranch - larger than Rhode Island.

Our story begins a world away from Texas with a man named King.

Family: The Ultimate Luxury

What the greatest families have in common with the strongest luxury brands 👇 The best luxury brands operate very differently than companies who cater to mass market.

In many cases, they do the exact opposite of what’s taught in business schools.