Wealth of Wisdom

CHAPTER 12Understanding the True Goals of Wealth Preparation

James Grubman

It was the family's first family meeting, and naturally, everyone was a bit nervous. They were trying to grasp the implications of how Mom and Dad's chain of 13 “friendly local” home improvement stores across three states was bought several months ago for a staggering sum by a national conglomerate. The parents, in their late 60s, and their three adult children knew there was a lot to learn, but they all admitted to some confusion about the big picture: What was coming ahead? What did they need to know, and why? What will the young grandchildren need to be prepared for? It all felt very overwhelming. That was when I, as the facilitator, went to the front of the meeting room, set up a flipchart, and pulled out a marker. I asked one question and then, ready to write down their answers, I waited.

Families with new wealth often know they will need education about finances, estate planning, trusts, working with advisors, and a bewildering array of other tasks. Unfortunately, it usually just feels like a constant barrage of things to do in their new affluent life. Helping families think through a strategic plan, a big-picture framework, calms the process by integrating all the component tasks. The following exercise often dramatically puts things in perspective, unifies everything, and commonly reveals what these “immigrants to wealth” do not yet understand about preparing for wealth. It is, to say the least, ...