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Kids, Wealth, and Consequences: Ensuring a Responsible Financial Future for the Next Generation

Kids, Wealth, and Consequences: Ensuring a Responsible Financial Future for the Next Generation

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by Jayne A. Pearl, Richard A. Morris
Publisher: John Wiley & Sons
Release Date: February 2010
ISBN: 9781576603482
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Book Description

Leaving children with a substantial amount of money can be a boon or a burden. High-net-worth parents need to give their children an education to navigate today's complex world. The question becomes how to raise children with a sense of reality and balance, imparting a strong work ethic, and making them good stewards of their wealth.

Kids, Wealth, and Consequences enlightens high-net-worth parents about the unique issues they need to explore. The book addresses the "hard" financial issues, such as investing and estate planning, as well as the "soft" emotional issues relating to values, family, and communication. Morris and Pearl detail strategies and techniques to help parents raise children who appreciate and know how to manage the wealth they inherit.

Richard Morris spent many years working for his family's multimillion dollar business, and learned firsthand the challenges of business ownership and family wealth.

Jayne Pearl is an experienced journalist who writes about families, family businesses, and money.

Table of Contents

  1. Copyright
  2. Foreword
  3. Acknowledgments
  4. Introduction
  5. I. Financial Choices
    1. 1. Calculating Your Family's Future
      1. 1.1. Self-Survey for Intergenerational Equity
      2. 1.2. What Is Money For?
      3. 1.3. Current Spending versus Future Intergenerational Equity
      4. 1.4. Other Factors
      5. 1.5. Comparing 1929 and 2008
      6. 1.6. Where to Go from Here
    2. 2. To Trust and How to Trust
      1. 2.1. A Little Disclaimer
      2. 2.2. Self-Survey about Trusts
      3. 2.3. Intelligent Trust Design
      4. 2.4. Trustee Selection and Oversight
      5. 2.5. When and How to Tell/Involve Beneficiaries
      6. 2.6. Handing Over Trust Control
    3. 3. Portfolio Management
      1. 3.1. Self-Survey about Portfolio Management
      2. 3.2. Asset Allocation
      3. 3.3. Asset Location
      4. 3.4. Portfolio Manager and Advisor Selection
      5. 3.5. Breaking Up Is Hard to Do
  6. II. Intellectual Choices
    1. 4. Financial Literacy
      1. 4.1. Self-Survey about Financial Literacy
      2. 4.2. Financial ABCs
      3. 4.3. Financial Values
      4. 4.4. Imparting Financial Values
      5. 4.5. Financial Boot Camp for Teens
    2. 5. Skills and Experience
      1. 5.1. Assessing Financial Skills
      2. 5.2. Schedule Spontaneous Time
      3. 5.3. Create Class Time
      4. 5.4. Play Games
      5. 5.5. Expose Kids to the Real World
    3. 6. Goals and Purpose
      1. 6.1. Self-Survey about Goals and Purpose
      2. 6.2. The Importance of Goals and Purpose
      3. 6.3. How to Find Goals and Purpose
      4. 6.4. How Parents Can Guide Children to Find Their Purpose
      5. 6.5. What If Purpose Just Doesn't Surface?
  7. III. Spiritual/Emotional Choices
    1. 7. Success and Happiness
      1. 7.1. Self-Survey about Success and Happiness
      2. 7.2. Transitory versus Sustained Happiness
      3. 7.3. Traits of Happy People
      4. 7.4. What Drives Drive?
      5. 7.5. The Success Trap
      6. 7.6. Can Wealth Help You Find Happiness?
    2. 8. Communication
      1. 8.1. Self-Survey about Communication
      2. 8.2. The Instinct to Avoid Talking about Money
        1. 8.2.1. What Should We Communicate?
        2. 8.2.2. Who Should Tell Your Kids?
        3. 8.2.3. When: The Perfect Time
        4. 8.2.4. How to Broach the Topic
    3. 9. Navigating the High-Net Worth Environment
      1. 9.1. Self-Survey about Your High-Net Worth Environment
      2. 9.2. Media and Money
      3. 9.3. "Old" versus "New" Money
      4. 9.4. Keeping Up with the Neighbors
      5. 9.5. Transcending External and Internal Economic Shocks
      6. 9.6. Discretionary Wealth
      7. 9.7. Staying Safe and Secure
      8. 9.8. Taking Inventory of Your Lifestyle and Values
      9. 9.9. Connections and Disconnections between Wealth and Lifestyle
  8. IV. Integrating Your Choices
    1. 10. The Family Glue
      1. 10.1. Self-Survey about Family Glue
      2. 10.2. The Ingredients of Family Glue
      3. 10.3. Strengthening Your Family Glue
      4. 10.4. When All Else Fails
    2. 11. Pulling It Together
      1. 11.1. Getting on Track
      2. 11.2. Integrating All the Pieces
      3. 11.3. Intergenerational Equity, Revisited
      4. 11.4. Designing Your Choices
    3. 1. Checklist of Financial Skills Assessment
    4. 2. Money Messages
    5. 3. Inventory of Your Lifestyle
    6. 4. Strengthening Your Family Glue
    7. 5. Self-Surveys
      1. E.1. Intergenerational Equity
      2. E.2. Trusts
      3. E.3. Portfolio Management
      4. E.4. Financial Literacy
      5. E.5. Skills and Experience
      6. E.6. Goals and Purpose
      7. E.7. Success and Happiness
      8. E.8. Communication
      9. E.9. Your High-Net Worth Environment
      10. E.10. Family Glue
    8. 6. Unintended Consequences
    9. 7. Teachable Moments
  9. About the Authors
  10. About Bloomberg