Building the mindset to create Inter-Generational Family Wealth
The Mission of our website and every Newsletter is;
“To enable more families, from more countries, to use the strategies of Inter-Generational wealth creation, through the stock market, to create more wealth, for more family members, on a revolving basis.”
It Is possible!
Everything begins in the mind. In yours; and mine, too.
All of the investment experts I will introduce to you (in various Newsletters) have said it repeatedly. Well, those were not their exact words but, they implied it. You and I can become wealthy and be the reference person (icon) for the beginning of wealth in our family like some of the illustrations they have shared with us. We can, if we have a certain mindset.
Then, Henry Ford who conceptualized and started Ford Motor (is it one of your ‘permanent residents?”) said it a little more explicitly many decades ago. My guess is that many fortunes have been made since by otherwise ‘normal’ people because, they believe Mr. Ford’s dictum and jumped right in. And are now counting their money! Or, having their accountants do it because they, accountants, have the skillset for that activity.
And what did Mr. Ford say? “Whether you think you can, or you think you can’t, you are right”. In other words, he was talking about our minds, and implying that every outcome is related to our attitude towards it. So, the thing to be done may not, necessarily, be the most important consideration. Instead, it is our attitude towards it. And he, Mr. Ford, demonstrated his conviction in the validity of his assertion by doing something that nobody, anywhere on our planet earth, had ever done…he started making motor cars!
So, if we accept Mr. Ford’s thesis, how do we make the transition from who are now to who we want to be remembered as…(i.e. the icon who is the foundation of this Family’s wealth) generations down the road on the Family Tree!? As I keep saying (because it is true) nothing worth our while comes free anymore and hence, many times, in order to pursue what we define as our priority, we have to wade through (sometimes) unwelcome challenges and make tough decisions, in order to focus on that one important objective. Sometimes we even have to make big sacrifices.
Strategies for Building the mindset for family wealth through the Stock Market
Yes, I recommend a three-prong strategy for guiding us to the decision but first, what is that mindset of which we speak? The mindset is the settled decision that this is what we want and are going to do. Full stop. And now, the question is on the ‘how’. The answer (Strategy) is tofollow the following three steps
Step 1.
Believe that you can do it too. Yes! You already know the formula for Building wealth from other Newsletters especially Newsletter #2 and Wealth Building Digest at the Homepage. It is
- Own an asset that throws off periodic cash flow
- Re-invest the ‘thrown off’ cashflowback in the same (or another) asset that produced it. This is called compounding.
- Let time, as measured in decades (like the years in your own life) perform its magic of ‘turbo-charging’ the number of shares (and hence the value of the investment.) The longer you keep this investment, the more valuable it will become)
Step 2.
You also know, from Newsletter#2 that if you do the things at Step 1 you will go through the metamorphic process of
- Transitioning from those who work for money to
- To Those who are making their money work for them
(Ofcourse, since you still at the ‘start of the curve’, you know you will, yourself, be working for money for many more years but, at least, you will have the satisfaction of knowing that finally, and at last, you have started doing what the experts have long been recommending that we do. You now only need a place, or platform, where you can perform Steps #1 and #2 above.
Step 3.
The place, or platform, must have three characteristics, on which to start the building of your family wealth
- you must be able to understand it (i.e. it must be transparent)
- your children, and their children, must be able to understand it too
- (once set up) it must be able to operate without your, or their personal involvement. Put another way, it must operate successfully, and independently of us on an absentee-owner basis. The stock market fits all three criteria.
What is the Inter-Generational Wealth-Transfer Strategy?
This is the cultivated mindset where each family, in each generation, continues to practice the concept of building wealth on the bases as outlined under Step 1. The two cornerstones of the Family Wealth-Transfer Strategy are
- Enshrinement of the ‘Living Family Commitment’
- Leave a tangible legacy of wealth, however small, for the incoming generation (so that they do not have to start ‘from scratch’ in building their own lives)
What is the ‘Living Family Commitment’?
This is a cornerstone understanding of inter-generational-wealth building that is drilled into the consciousness of each family and transmitted from one generation to the next. It is to become an important ingredient in each family member’s DNA.
We can now summarize
The building of wealth in the family (it takes decades/generations) is not necessarily easy. It may require that you make many sacrifices to start and usually, except in cases of receiving an inheritance, (because, somebody earlier on the Family Tree had done what you are about to) the sacrifice could be a ‘heavy’ one to make.
Ever heard of little Bob Marley, from little Jamaica, and how he gave Reggae music to the whole wide world so now everybody, in every cranny, knows Reggae? (Yes. Others have played big very roles too)
And ever heard of little Sam Walton who started a little store in little town of Rogers, and now everybody, everywhere, knows of, and wants to shop at Walmart?
Well, in terms of building family wealth, and transmitting the mindset for continuing to do so in succeeding generations, where do you stand? Everything starts with the 1st step.
Yours!
It is possible!