PFwise.com
Search
  • Home
  • Blog
  • Tools
  • Know-how
    • Insurance 101
    • Annuity 101
    • College Planning
    • Real Estate
    • Retirement Planning
    • Smart Investment
    • Stock Ideas
    • Tax Planning
  • About Us
  • 中文
  • Resources
    • Personal Finance Reading List
    • Financial Aid Resources
    • Personal Finance Calendar
    • Retirement Planning Calendar
    • ETF list
    • Financial Glossary
  • Newsletters Archive

Five Key Lessons for “Value Transmission” Within A Family

4/11/2019

0 Comments

 
While estate planning and passing on wealth to the next generation (in a tax-efficient manner) is a standard conversation for affluent clients, a recent book by Tom McCullough and Keith Whitaker entitled “Wealth of Wisdom: The Top 50 Questions Wealthy Families Ask” highlights that for many families, figuring out how to pass on their family values is equally or more important than “just” passing on their wealth alone.

Accordingly, five key lessons for “values transmission” within the family include:

1) Values are caught, not taught (meaning that actions speak louder than words, and the best way for families to communicate values to their children is by living and doing them, not just saying them… although establishing a family mission statement or family values statement may still help the family to at least crystallize its thinking of the 
values to express in the first place);

2) Values are different from beliefs, preferences, and choices (in essence, “values are the compass that each of us uses to direct our behavior, often unconsciously” and serve as the organizing principles of our lives, such that Christianity or Judaism are preferences or choices while “spirituality” would be the unifying value, or environmental conservation or the arts are preferences while “generosity” is a value);

3) Leading a life that is consistent with your values is the greatest predictor of happiness (as it’s the congruence between life and values that drive happiness and satisfaction, while misalignment between the two leads to frustration and stress, though the demands of growing and maintaining wealth can often challenge affluent families to stay in congruence, and teenagers will have a natural tendency to challenge their parents’ values are part of their own development);

4) Storytelling is a powerful means of sharing values (as telling stories is a way to express your own life’s work, in the context of what’s most important to you, and what your values are); and

​5) If the family is to flourish for multiple generations, the attention to human capital should be as serious as that to financial capital (which means focusing on both maintaining healthy family 
relationships, and using financial resources to enhance the life experiences and opportunities of each member of the family).
0 Comments



Leave a Reply.

    Author

    PFwise's goal is to help ordinary people make wise personal finance decisions.

    Archives

    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013

    Categories

    All
    Annuity
    Book Reviews
    College Finance
    Finance In Formula
    Financial Scams
    For Entrepreneurs
    Healthcare
    Insurance
    Investment
    Miscellaneous
    Real Estate
    Retirement
    Savings
    Savings Ideas
    Stock-ideas
    Tax
    Tax-related

    RSS Feed

Copyright © 2013 - 2022 PFWise.com, All Rights Reserved. 
IMPORTANT DISCLOSURES
PFwise.com does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.

To the extent that any material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
About Us | Contact Us 
中文