Keeping the money in the family

Published 2:24 pm Friday, June 28, 2019

Give your family the best shot at preserving wealth from one generation to the next.

As more baby boomers approach retirement, they’ll start thinking about transferring wealth. Many plan to leave generous inheritances, but that’s not always as easy as it sounds. In fact, approximately 70% of family wealth disappears when distributed across multiple generations.

A common reason is many families lack the ability to make joint decisions or can’t implement a system that works with multiple stakeholders. To increase your odds, bring everyone together and create the strongest family unit possible. The goal is for each succeeding generation to preserve wealth for the good of the family and the world around them. The question is how to achieve it.

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Start the process early: Talk with your children and grandchildren as soon as possible and make sure they understand their responsibilities when it comes to being good stewards of wealth.

Share the plan: At the right time, share your wishes for the future in detail. Introduce your kids to your professional advisors, who can help answer any questions.

Don’t divulge everything at once: The promise of sudden wealth may inspire your children to rest on your laurels, so to speak. Encourage them to make a financial life of their own.

Educate: Share how your wealth was built in the first place and how you view money’s purpose. This will help heirs recognize the importance of diligence, delayed gratification and good stewardship.

Make strategic joint decisions: While you may not always agree with your kids, give them a say in how the family wealth should be used. This strengthens the family bond and gives you a better chance of success.

Reduce bailouts: The more children face and conquer obstacles on their own, the more tools and resilience they will develop for later.


Did you know conversations about money can also teach values? In fact, they can help kids become thrifty, modest, patient and generous – which helps when it comes to transferring wealth.

Something simple, like allowance, is a great place to start. Encourage young children to divide their allowances into three buckets:

Spending: For spending, of course.

Saving: To teach the virtues of building a cushion for the “what ifs” that may come their way, as well as the benefits of perseverance and patience in allowing the balance to grow.

Giving: To promote the value of generosity and giving to those less fortunate.

You might be amazed at the results!

While these guidelines might not fit every family, they should provide a great starting point as you plan your legacy and family’s future.


• Put wealth transfer wishes on paper.

• Start age-appropriate conversations.

• Reach out to your advisor for guidance.

Raymond James and its advisors do not offer legal advice. You should discuss any legal matters with the appropriate professional.

Sources:; Raymond James research; James Hughes, author of “Family Wealth: Keeping it in the Family”

Material created by Raymond James for use by its advisors.

The information contained herein has been obtained from sources considered reliable, but we do not guarantee that the foregoing material is accurate or complete. Raymond James is not affiliated with any other entity listed herein.

© 2019 Raymond James Financial Services, Inc., member FINRA/SIPC. 19-BDMKT-3508 BS 4/19

Stephen P. Poitevint, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services. 

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC.  Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc.

Stephen P. Poitevint, Financial Advisor, is located at 908 Tallahassee Highway, Bainbridge, Georgia, and can be contacted at (229) 246-7208 or