In this episode, I’m talking about the modern meaning of intergenerational wealth.

Generational wealth refers to having more wealth than what one generation needs. Intergenerational wealth refers to having more wealth than what two generations need.

In both scenarios, financial advisors provide strategies to optimize the transfer for tax efficiency. For generational wealth, lawyers help with the will and accountants might provide ideas. For intergenerational wealth, accountants and lawyers are also involved in the integrated strategy.

To be an intergenerational strategy, it is more than a technical strategy. It is also a philosophy that is passed down through multiple generations.

If you leave $10M through an inheritance, and the beneficiary frivolously spends it all in a few years and struggles to have a comfortable life thereafter, is that a transfer of wealth? No. It was just a transfer of assets.

Wealth has no serious relationship to a person’s financial value. It’s knowing how to be smart with your financial value.

Thus, the modern meaning of intergenerational wealth is that it's mostly a strategy to pass financial intelligence with the intent that the intelligence continues through multiple generations. It also comes with the expectation that the value continues to grow sustainably from generation to generation.

With this modern meaning of intergenerational wealth, it applies to everyone.

How do you achieve this?

Most people don’t want to talk about financial intelligence with their family as it introduces the hazard and risk of fueling greed. Thus, financial intelligence is primarily a philosophy that is learned through osmosis.

The best way I know for you to enable this strategy is to have you and your family listen to this podcast, particularly this episode. The more it becomes a philosophy that you know naturally without reminders, it becomes something that transfers through by osmosis.

What complements this intelligence is to have yourself and your family exposed to other sources that also possess the same intelligence. Like a financial advisor that expresses the philosophy in the context of every meeting. When exposed to other sources that don’t possess this intelligence, it will encourage the intelligence to fade away.

Contact me at informedcanadianinvestor@gmail.com