What is the Fate of Generational Wealth

Rice patty to rice patty in three generations is a proverb that describes the loss of generational wealth over three generations. We know it as shirtsleeves to shirtsleeves in three generations.

Generational Grid

The first generation makes it (G1).

The second generation preserves it (G2).

The third generation loses it (G3).

Many financial strategies, estate planning, legacy planning, philanthropy and family business succession strategies simply accelerate the velocity of going from G1 to G3.

In the words of John Adams (our 2nd President) to his wife Abigail in 1780, “I study politics and ware so that my sons have the right to study mathematics and philosophy such that their children will have the freedom to study painting, poetry, music, architecture, porcelain and tapestry.” Although John Adams was talking about the rights and freedom of the time, he captured in the fewest words possible the nature of people.

Family Building is a powerful strategy to overcome this degradation of human and intellectual capital and in so doing, change the direction of generational change.

Dr. Ron Law