fbpx
U

The #1 Reason Why 70% of Wealthy Families Lose All Their Money

February 22, 2019

Your kids, grandkids, great-grandkids could go broke if you do not fix this problem. Yes, that may seem a bit harsh, but when you look at the statistics of generational wealth building it is very somber.

  • 70% of rich families lose their wealth by the 2nd generation
  • 70% of family-owned businesses fail and/or sold by the 2nd generation
  • 86% of millionaires are first generation.

Contrary to a commonly held belief that most wealthy people are born into their wealth, most millionaires are self-made. However, this earned wealth struggles to be maintained or grown by second and third generation family members. We call this the wealth wash cycle.

Tune in to this week’s episode of The Money Guy Show as we reveal the secrets to sustaining your wealth through future generations. Learn the practical steps you and your family can implement to keep your wealth for generations to come.

Here’s What You’ll Find Out in this Episode:

The steps you can follow to extend wealth beyond the first generation.

  1. Open Lines of Financial Communication: Why you shouldn’t avoid the money conversation with your adult children, and how to start including them in important financial discussions.
  2. Foster Financial Behaviors that Create Future Success: What a timeline of things that you can do throughout the different stages of life to nurture good financial behaviors in your children:
    • Kids Under 18: Teach the basics of how money works. Talk to your children early and often about finance.
    • College Graduates: Show them that every dollar needs a plan. Share books that can inspire them to understand their money even more.
    • Married Children: Be their counselor for big life decisions like joining money with a spouse, buying their first home, preparing for emergencies, and getting finances in order before having children.
  3. Share Your Estate Plan: How you can make your children aware of your estate plan and the decisions you’ve made and why. Consider having a family meeting to share your estate plan with your children. It is important for your family to know this information and where it is located.

Break The Cycle: Find out how to break the cycle of generational wealth dissipation and why bringing in an outside voice, a financial expert, can help facilitate productive discussions that can lead to successful generational wealth maintenance.

You can end the Generational Wealth Wash Cycle by applying these steps to go beyond common sense and make sure that your children and grandchildren are building a legacy that works just as hard as you did building those assets.

Resources Mentioned in This Episode         

Enjoy the Show?

Tune In and Go Beyond Common Sense with the Money Guys

This show would not be what it is today without the support of our wonderful listeners. We strive to continue making the show better, and your feedback is an important part of that process.

If you have any questions/suggestions/comments/concerns (or just want to say hi!), feel free to reach out to us: [email protected] and [email protected] You can also join the conversation on Facebook or connect on Twitter @MoneyGuyPodcast.

If you enjoyed this episode, be sure to join our community! You’ll never miss special announcements and offers, plus you’ll get future podcasts and blog posts delivered straight to your inbox so you can get in on the action right away.

Most Recent Episodes

How to Be Wealthy By Age! (Can You Catch Up?)

How much does it take for you to meet your retirement goals by age, and what are some common traps your peers fall into? Learn more about how to be wealthy, mistakes to avoid, and exactly what a little extra saving can do for your retirement income. In this episode,...

Can Money Buy Happiness? (Here’s the Truth)

Money and happiness aren’t directly correlated, but they are intertwined. Some believe that once they have a large, pie-in-the-sky amount of money, they will finally be happy. Others are working towards a more specific retirement number they hope will bring happiness....

Passive Income EXPOSED: 3 Ways to Actually Make Money (2022 Edition)

Passive income is a dream for many looking to get out of their 9-5 or just create extra income on the side. In this episode, we’ll break down different ways to actually earn passive income in 2022. In this episode, you'll learn: The easiest and hardest side hustles...

Millionaires Share Their Secrets to Financial Success! (2022 Edition)

It’s that time of year again: our annual Money Guy Wealth Survey episode. We’re back with all-new data for 2022, including new questions. You’ll learn who millionaires are, what they did to get there, and how they built their wealth. In this episode, you'll learn: The...

Dumb Financial Decisions That Americans Make! (Do You?)

Throughout our years of doing the show, we’ve seen more than our share of financial mistakes. Some are more common than others - in this episode, we’ll discuss some of the dumb financial decisions Americans make - and what you can do differently. In this episode,...

3 Things You SHOULD Spend Money On (Even During a Recession)

When is it okay to start spending money on things you want, but may not need? In this episode, we'll discuss when you can start spending money on "unnecessary" purchases, and what goods, services, and experiences are worth spending money on. In this episode, you'll...

3 WORST Types of Financial Crooks (Don’t Get Scammed!)

In the financial world, there are a lot of crooks that try to get into your pockets. From metaphorical crooks selling a bad product to literal crooks stealing your money, we'll cover the different types of financial crooks to watch out for and how you can protect...

Financial Advisors React to NFL Players Spending Their First Million!

Not many Americans will ever make over one million dollars in a year, but professional athletes regularly make that and more. In this react video, we'll see how NFL players spent their first million dollars after making it into the league. As we review their mistakes...

Everything You Need to Know About Real Estate Investing!

Over the years, we have had some great conversations about real estate investing. In this episode, we put together the ultimate guide to show you everything you need to know about real estate investing! In this episode, you'll learn: How to get started in real estate...