View profile

Build Your Family Bank

As James E Hughes Jr. points out, a family’s wealth is not limited to its financial assets but includ
The Business of Family
Build Your Family Bank
By Mike Boyd • Issue #14 • View online
As James E Hughes Jr. points out, a family’s wealth is not limited to its financial assets but includes its arguably more important forms of wealth: its human and intellectual assets. That means a family’s total assets are far greater than its financial assets alone.
This week’s recommended book, Build Your Family Bank, builds on the seminal work of Hughes and offers practical and concrete steps to take to ensure your family’s successful generational transition.
“The Family Bank approach recognizes that the traditional method of succession and wealth-transition planning, which focuses on controlling financial assets and minimizing and deferring taxes, gets the order of the work backwards.
The Family Bank approach, in contrast, pays close attention to the human elements of the family, then explores governance strategies and considers legal structures that meet the family’s needs.”

Source: Build Your Family Bank (Griffiths-Hamilton, 2014)
Source: Build Your Family Bank (Griffiths-Hamilton, 2014)
“The Family Bank approach requires effective communication built on trust, effective preparation of the Family Bank members, and a shared vision of what the Family Bank wants to achieve in the future. Along with that shared family vision comes the recognition that each generation is encouraged to become their own wealth creators while simultaneously stewarding the inherited Family Bank.
In all of these areas, the Family Bank leaders have an essential role to play. A successful Family Bank depends on each member earning a voice on the Family Bank board and on the three Ps: a shared Purpose, an agreed-upon Process, and the creation of Policies before need.”
Recommended Book:
Why I love this book: it written by a Family Enterprise Advisor who herself is a third generation inheritor of family wealth. Emily’s professional training and unique first-hand experience have given her a deep understanding of the benefits of family wealth and family-business transition planning.
This Week's Podcast Episode:
Thank you for your support - every bit of encouragement is greatly appreciated.
Thank you for your support - every bit of encouragement is greatly appreciated.
If you would like to leave a review for the podcast, this unique link will prompt you to open iTunes directly where you can leave a comment. Thank you so much for your support!
Interesting links:
How to Build a Company That Will Last for 100 Years | Inc.com
Wealth Transfers: How To Reverse The 70% Failure Rate
Mike Boyd
This interview with Paolo has been popular. My personal takeaways were the stories about:

1. Pruning the family tree
2. The Family Archive &
3. Family Charter examples

As a visual learner, I found this sketch useful too. https://t.co/SiJkWPayZ1 https://t.co/JfyhbVJMR9
Stay in touch
Mike Boyd is the co-owner and CEO of the Vroom Group, Founder of Prosura insurance, Investor at Mudbrick Capital, Host of The Business of Family Podcast and an active member of YPO.
Did you enjoy this issue?
Mike Boyd

I'm inspired by multi-generational businesses and the families who steward them.

Join me as I learn how some of the world's most interesting families share values, knowledge, resources, and wealth with the next generation.

If you don't want these updates anymore, please unsubscribe here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Powered by Revue