Tuesday, June 3, 2014

Wealth Tends to Decline over the Generations

There are, unfortunately, many people in this world who don’t subscribe to the belief that wealth management strategies are important. These people just expect the money to keep rolling in and accumulating with little to no effort on their part, and, according to Fox News, more often than not, these people are not the people who made the money in the first place. Instead, they are the heirs who have received family money through no actions of their own.   


Cerulli Associates, a research firm, predicts that, between 2031 and 2045, about 10% of the wealth in the United States will be “changing hands” every five years. It also predicts, however, that each time the wealth changes hands, it will decline. Typically, wealth increases in the first generation to acquire the wealth and then begins declining by the second or third generation, ultimately becoming non-existent or at least modest in later generations.


If you’ve worked hard to build your fortune, and inevitably you have, don’t let it all go to waste once your heirs get ahold of it. Teach your heirs and yourself proven wealth management strategies to make your money last. You can learn and begin implementing those strategies through the help of a skilled wealth management firm, such as Platinum Financial Associates of Naperville.

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