Your family has a 91% likelihood of failing to transition wealth to the third generation
- 1st Generation 100%
- 2nd Generation 30%
- 3rd Generation 9%
- 4th Generation
In all cultures, in all geographies, in all economic systems and at all points in the economic cycle, families typically create and lose their wealth within three generations
This is why, in every society, there are phrases ingrained in tradition to reflect this point:
"Wealth rarely survives three generations"
"Wealth comes like a turtle and goes away like a gazelle"
"Chi la fa, chi la mantiene e chi la distrugge"
"One who makes, one who maintains and one who destroys"
"Erwerben, vererben, verderben"
"Acquire, leave, ruin"
"From shirtsleeves to shirtsleeves in three generations"
Traditional English saying
What can your family do to prevent losing your wealth within three generations?
- Financial Capital
- Human Capital
The most successful families preserve their wealth by focusing on human capital as much as they focus on financial capital
Think of it like this...
Preparing the money for your children
Preparing the children for your money
So, what is human capital?
Human capital is the value of your family's skills and the quality of your interactions.
... it involves your family educating the next generation, effectively reaching decisions together, and addressing partental concerns to successfully transition wealth to the next generation.
Let's take a closer look...
What are the different aspects of human capital?
Preparing your children for the money
- Financial education
- Teaching communication skills
- Addressing parental concerns
- Reaching decisions together
- Effective governance structures
- Defining the family legacy
- Resolving family conflict
- Next generation education
Oxford Place is a unique organisation
We teach families specific skills to enhance human capital and preserve their wealth.
Please browse our site to read more about what we do.
So, let's talk about how
we do it
Click on an area below to explore