Over the next three decades, younger generations will inherit over $30 trillion. During this same period, thousands of prosperous small and medium businesses will also change hands. This massive transfer of wealth may cause some significant problems for those on the receiving end. You already know how critical money management skills are for both business and personal success and happiness. But, does the generation that will take over from you understand those lessons? You’ve worked too hard to see your wealth squandered by people with too little financial education.
Importance of Preparation
Mentors are critical for success in every area of life. You have benefited from many mentors. Are you a good mentor? Are you preparing the next generation to take over for you? Hall of Fame quarterback Steve Young was one of the most talented players ever to put on a helmet in the NFL. His talent was clear from his earliest college playing days. But, when he made it to the NFL, he sat on the bench for three years. He was more talented than almost any other quarterback in the league. But, instead of agitating to start, Young patiently sat on the bench and learned from the first-string quarterback, Joe Montana. Montana was a legend. Young actively watched and learned for three years. When Young eventually got his turn to be the starter, he made the most of it. He won two MVP awards and a Super Bowl championship. Being a backup prepared Young to be a great player. Even with his talent, Young still needed mentorship. You need to prepare the next generation so that when it is their time to inherit your wealth or take over your business, they are ready to improve upon what you have built. You can shorten their learning curve.
Business Succession Planning
If you’re a business owner, you need a plan for what will happen when you retire. Your business is a valuable asset that could help fund your retirement if you choose the right people to take over for you. You need a plan selecting your eventual replacement, and for how you will train them. Many businesses fail after the founder leaves because the next people don’t have enough experience running the business. You can avoid this by planning now for your exit, even if it is still decades away. Our Wealth Management Page can offer you insight into the OmniStar process.
If your children or grandchildren are going to be inheriting your wealth, you need to provide them with the skills to manage money. It can be disorienting to suddenly be responsible for an array of assets. If they don’t understand sound money and wealth management principles, they could easily lose all your hard-earned wealth in just a few years. But, if you are mentoring the next generation now, they will be prepared to take over and to build upon the foundation you have created for them. Having money doesn’t make people smarter, especially if they weren’t the ones who earned it. But, money management can be learned. You can cement your legacy by preparing your successors long before you leave everything behind.