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Transitioning to Wealth During Your Lifetime

The statistical odds of retaining family wealth until the third (12%) and fourth generations ( 3%) ar
The Business of Family
Transitioning to Wealth During Your Lifetime
By Mike Boyd • Issue #12 • View online
The statistical odds of retaining family wealth until the third (12%) and fourth generations ( 3%) are well cited, as I’ve written about before. What I hadn’t seen until recently were the statistics around New Wealth created each generation and the numbers are simply staggering.
Approximately 80 percent of the wealthy are not raised with wealth, it’s obtained during their lifetime.
Whether they come into money via a windfall inheritance or lottery win, or, more likely via entrepreneurship and savvy investing, the vast majority of wealthy people are learning what it means to be wealthy for the first time.
The implication is ominous: People are streaming out of the metaphorical Land of Wealth at a much faster pace than they are pouring in. Only by this massive exodus could the 80/20 proportion of acquirers outnumbering inheritors remain in place, by so wide a margin, so consistently, over so long a period of time. - James Grubman
If 80% of wealth is newly made each generation and 70% of families lose it by the second generation, there’s a glaring opportunity to investigate why that is and how it can be avoided.

Recommended Book:
An original and innovative approach to the challenges facing familes of wealth.
An original and innovative approach to the challenges facing familes of wealth.
This week’s book recommendation, Strangers in Paradise (James Grubman), does just that - taking a fascinating look at the psychology of money, cultural upbringing and how ‘immigrants to wealth’ from the working and middle classes struggle to adapt to their new found wealth “Paradise”.
Written by a prominent wealth psychologist, Strangers in Paradise takes an innovative approach to the challenges facing wealth’s “immigrants and natives.” Combining clear reasoning with real-world stories, Strangers in Paradise outlines for the first time how the key process for families of wealth - like all immigrant families - is adaptation.
Wishlist:
  1. There are many new followers on this newsletter. Please don’t be shy, “hit reply” and introduce yourself - I’d love to hear from you.
  2. Q&A - have a question, topic or issue that you’d like to see me research and share? Please send me your requests.
  3. The podcast is growing tremendously and as always I appreciate your support. If you can spare a moment to leave a review on iTunes it would be a great help, thank you.
This Week's Podcast Episode:
Covie's episode is fun & upbeat, it highlights success stories of family wealth.
Covie's episode is fun & upbeat, it highlights success stories of family wealth.
Interesting links:
Book: Raised Healthy, Wealthy & Wise
Netflix Movie: ALL THE MONEY IN THE WORLD - Official Trailer (HD)
The British Banking Dynasty That’s Even Older Than the Rothschilds - Bloomberg
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.
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Mike Boyd

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

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