The way we manage our finances differs because everyone has unique needs and requirements, as well as there being a vast range of individual and family resources. For high-wealth families it can be a particular challenge to maintain their standard of living, while also making sure that capital growth continues in order to guarantee a secure future for the next generation. There are several areas that need to be addressed, and each of these need to be properly managed to ensure a positive outcome.
Attitudes to money
For wealth creators it can be a challenge to ensure that their offspring grow up with a healthy attitude to money. Every parent, no matter their status, wants to provide the best environment for their children to grow up in, but this can present difficulties for those with money as much as it can for those without.
A knowledge that somewhere further down the line a large inheritance will come their way can make a child grow up with a lack of desire or ambition of their own. Teaching them money management not only helps avoid Oscar Wilde’s adage about knowing the price of everything and the value of nothing, it can also help prevent the unscrupulous from taking advantage of their wealth in later in life.
Success or failure
Wealth being passed from generation to generation is not a certainty, and some might say it is the exception rather than the rule. Although there are many world-famous dynasties that have successfully transferred wealth across generations, only one in three businesses actually pass to the next generation. Studies of high-net worth families have shown that an effective estate plan is essential if the future security of acquired wealth is to be assured.
Although many wealth generators will be knowledgeable in their own sphere, the skills for long-term financial planning may not come easily to them. This is where money management comes into the picture; individuals such as Cleon Papadopoulos working in the financial industry play an important role in advising high-net worth families.
Papadopoulos, born in Athens, Greece, is a company director based in London, and has spent the majority of his career working in the financial sector there. A graduate of the renowned London School of Economics and Political Science (LSE), Papadopoulos has more than 25 years’ experience as a senior executive at various financial institutions including SG Warburg, Swiss Bank Corporation (SBC) and UBS.
Today he uses his experience and knowledge to help a wide range of clients with their financial management needs.
Money comes, money goes
Although wealth can bring with it a sense of timelessness due to the way it can protect families from the rigors of the outside world, the way influence of international geopolitics on financial developments means it can never be taken for granted, perhaps more so now than ever. Therefore, effective wealth management is the only way to ensure continuity and provide a secure future for forthcoming generations.
Courtesy TheTopTier Digital Media