How do I raise my children in such a way that they will be motivated and inspired to maximize their potential and thus live a fulfilling and happy life? This is a type of rich person’s concern that is not so easy to address with the more technical solutions that we have discussed so far.
The saying shirtsleeves to shirtsleeves in three generations summarizes best how your next of kin is at least as much, if not more, a threat to family wealth as any of the other rich person’s concerns that we have discussed so far.
Concerns about the readiness of the next generation to build on family wealth cannot easily be addressed by technical solutions such as a proper investment portfolio, a life insurance policy, or a solid wealth structure. This type of concern enters the realm of psychology and is less tangible than the type of concerns that we have addressed so far.
As the mental preparedness and, with that, the degree of happiness of the next generation has an immediate impact on the ability to preserve the wealth in the family, in this final part of the text we elaborate on this common and important rich person’s concern about the education of children in a wealthy setting, as well as how your private banker could be of added value in this respect.
In Chapter 17 we first provide a general insight into the ambivalent relationship between wealth and ...