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Copyright © 2017 by Michael Cole. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data is available:
ISBN 978-1-119-26470-5 (Hardcover)
ISBN 978-1-119-26473-6 (epdf )
ISBN 978-1-119-26480-4 (epub)
Cover Design: Wiley
Creating substantial financial resources requires a combination of skill, luck, and timing. Very few people are successful at creating and accumulating wealth that provides more than what is necessary to maintain their standard of living and sustain them throughout their lives. A gifted, fortunate few build levels of wealth that have the potential to last well beyond their lifetime and create impact far beyond their earthly existence.
For these fortunate few, it is an incredible gift and a substantial burden to enjoy, manage, transfer, and sustain the fortunes they have created or inherited. Several studies document the fact that 70 percent of the time significant wealth evaporates by the third generation. In addition, only 12 percent of family businesses are still in operation by the third generation. How many successful entrepreneurs think of the business they created as their legacy that will survive over time and generations? The fact is only one in nine family businesses survives the test of time and succession.
If these unique and exceptionally talented individuals and families have been so successful in creating great wealth, then why are so many of them failing at long‐term wealth management and sustainability? Is it poor investment performance, inadequate tax planning, ineffective legal structuring, or substandard advice? Certainly, all these aspects play a part in the preservation of wealth over time. However, extensive research demonstrates that 95 percent of the failures are due to other causes, including poor communication and lack of trust among family members, inadequate preparation of the next generation, and the absence of a shared mission or vision among the family.
