Steffi Claiden,”Preserving the Family Fortune,” RealAssets Adviser, March 2017
The Takeaway: Holding onto money across generations can be an enormous struggle, says Claiden.
70 percent of the wealthy lose their money by the second generation, and 90% go bust by the 3rd generation.
What’s behind this money vanishing act? Here are the main culprits, which can haunt middle-income people as well as the uber-rich:
- Unreasonable lifestyle expectations and spending levels.
- Splitting money among multiple children, which divides the family fortune.
- Poor or no planning.
- Lack of business or financial skills.