Catching this headline in one of the many industry rags we read weekly, a thought as mentioned in last weeks preview post – “That seems too dramatic!”
We mention frequently this platform serves as a digit diary many times … so the search was on for prior Inheritance reviews… 21 posts, not including the preview post last week going back to 2009 on the subject – Digressing for a moment, the oldest post a 2009 about working with professional athletes was interesting …. but nothing as dramatic as this study….
Digging deeper into the aforementioned specific article, the initial thought was it was much smaller inheritance dollars. The study was for average inheritances of $133k. Certainly not tiny dollars for almost half to dispense of in less than a year!
Then it has to be age – This study also focused on those receiving being age 50 or greater… Dangit …
Looking outside of our research and writings here… the news became even less bright…. fun fact, the author of this article has interviewed and quoted us in the past! Jogged memory from the 17 years of writings search for this post….
In a study by Family business institute, they found 70% of the wealth leaves in the second generation… and its almost all gone by the third Generation….
While even more dire – From the article
“Only about 30% of family-owned businesses survive into the second generation; 12% are still viable into the third generation. Only about 3% of all family businesses operate into the fourth generation or beyond, according to research by the Family Business Institute.”
At least they offer a solution in this article, as the headline states “Letting go of the Reins” meaning having the next generation participate at an earlier age, rather than the Australian example of the son gaining responsibilities at the spry age of 65! At least this makes some sense!
For the record, the gathering of these statistics and accuracy is tough… but if only partially correct, garners more discussion!
Ok…so we have worked hard at building, saving, investing and being wise with the family Estate ….
There are observations of success and failures we have observed over the last four decades that we will share in our next post/Part 2 on this subject that we believe were missed in these articles…
Have a Great “Inheritance Statistics Updated” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: AI created the Domino splash image. All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
