“It didn’t matter how big our house was; it mattered that there was love in it.” – Peter Buffett
When it comes to including family members in your business or wealth management, there are several things to keep in mind. To begin with, family governance and fundamental beliefs should be used when making decisions. This will ensure that everyone is on the same page and that any problems will be addressed fairly and equally.
It is also important to remember that not all children are interested in or suited for a career in the family business. Many would prefer a more traditional job and to live a more “normal” life. That is okay! There is no need to force anyone to do something they do not want to do.
Create a family culture of communication and trust so that everyone feels like they are a part of the team. It is essential to support open lines of communication. It is also an innovative idea to have regular meetings when everyone can come together and provide updates. This entails discussing your plans with your family members and listening to their input on how they want to be involved. It is also critical to set clear expectations and responsibilities within the business or wealth management strategy.
If you are not careful, some of your children may come to resent you if they believe that you’re giving more responsibility and/or money to their siblings than them. You should do whatever possible to prevent creating an appearance of unfairness – meaning all your children should be given the same treatment; this applies whether they help with the family business or not.
Another mistake families often make is giving their children too much money too soon. This can be harmful to their development and lead to problems down the road. Aim to give your children money in a way that encourages them to work for it and learn how to manage it responsibly.
If family dynamics influence business decisions, it can create issues. This can turn into a bigger problem if members of your family disagree about how the company should function or how wealth should be divided. To prevent this, have transparent rules in place that explain how these types of disagreements will be managed among your family members.
In the end, incorporating family members into your business or wealth management strategy might help foster unity and solidarity within your family. However, it is critical to do so in a balanced and fair manner that takes all your children into account. Following the guidelines above will help ensure that your family is well-equipped for success now and in the future.
“The strength of a family, like the strength of an army, lies in its loyalty to each other.” – Mario Puzo
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Peter T. Waldron is a registered representative of Lincoln Financial Advisors Corp. Securities offered through Lincoln Financial Advisors Corp., a broker-dealer (member SIPC). Investment advisory services offered through Sagemark Consulting, a division of Lincoln Financial Advisors Corp., a registered investment advisor. Insurance offered through Lincoln Marketing and Insurance Agency, LLC and Lincoln Associates Insurance Agency, Inc. and other fine companies. Waldron Partners is not an affiliate of Lincoln Financial Advisors. Lincoln Financial Advisors Corp. and its representatives do not provide legal or tax advice. You may want to consult a legal or tax advisor regarding any legal or tax information as it relates to your personal circumstances. CRN-4952643-091522