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RICHER TO POORER
For 9 out of 10 affluent families,
the outlook for the future is grim.
What one advisor is doing about it
will surprise you.
Business Financial Planning
by Brad Haga
Jose Feliciano thinks we should have
a lot more compassion for the woes of the rich. And in the
world of financial planning for wealthy families, he’s
not alone. Feliciano, a Financial Planner & Wealth Consultant,
is a member of The Heritage Institute, an organization that
educates advisors to affluent families in a unique version
of values-based legacy planning. He knows that asking us to
feel sorry for families with seven figure bank accounts may
be stretching it for folks who struggle to pay the rent each
month. “The problem,” Jose says, “is that
we’re so used to hearing about the rich from society
columns and tabloid TV that the truth about family wealth
in America just slips between the cracks.”
It’s Lifestyles of the Rich &
Famous for some of America’s 3.5 million households
with over $1 million in net worth, he says, but not for most.
For the majority of affluent families, the champagne wishes
and caviar dreams give way pretty quickly to discount beer
and crackers. According to U.S. Trust Bank, only 10% of the
millionaires in the US inherited their money; most create
it the old-fashioned way, working up through the ranks or
in their own businesses.
But that wealth creation comes with a
surprising price tag: studies show that in 6 out of 10 familes
where new wealth has been created, the money will be gone
by the time the first generation of children are grown. When
you look out to the third generation, 9 out of 10 wealthy
families will have blown through the family fortune.
Feliciano’s mission- and
the reason he is in such demand as a family wealth consultant
and seminar speaker- is to alert families and their advisors
to this sobering reality, and to provide a proven antidote.
Unless they deal with the root causes, the fortune they have
worked so hard to attain will probably be gone by the time
their grandchildren are grown.
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