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Book of the Month: The Rationale Optimist

Each month Heritage recommends a read from one of our staff — a book we feel our readers and clients will enjoy. Our April recommendation comes from Matt McGuire, President, Heritage Institutional, who says this read showcases why the world is getting better and our role in it.

The Rationale Optimist: How Prosperity Evolves by Matt Ridley41MLwBkcIKL._SX330_BO1,204,203,200_

From the publisher:

Life is getting better—and at an accelerating rate. Food availability, income, and life span are up; disease, child mortality, and violence are down — all across the globe. Though the world is far from perfect, necessities and luxuries alike are getting cheaper; population growth is slowing; Africa is following Asia out of poverty; the Internet, the mobile phone, and container shipping are enriching people’s lives as never before. The pessimists who dominate public discourse insist that we will soon reach a turning point and things will start to get worse. But they have been saying this for two hundred years.

Yet Matt Ridley does more than describe how things are getting better. He explains why. Prosperity comes from everybody working for everybody else. The habit of exchange and specialization—which started more than 100,000 years ago—has created a collective brain that sets human living standards on a rising trend. The mutual dependence, trust, and sharing that result are causes for hope, not despair.

Reviews:

This bold book covers the entire sweep of human history, from the Stone Age to the Internet, from the stagnation of the Ming empire to the invention of the steam engine, from the population explosion to the likely consequences of climate change. It ends with a confident assertion that thanks to the ceaseless capacity of the human race for innovative change, and despite inevitable disasters along the way, the twenty-first century will see both human prosperity and natural biodiversity enhanced. Acute, refreshing, and revelatory, The Rational Optimist will change your way of thinking about the world for the better.Ridley writes with panache, wit, and humor and displays remarkable ingenuity in finding ways to present complicated materials for the lay reader.” — Los Angeles Times

In a bold and provocative interpretation of economic history, Matt Ridley, the New York Times-bestselling author of Genome and The Red Queen, makes the case for an economics of hope, arguing that the benefits of commerce, technology, innovation, and change—what Ridley calls cultural evolution—will inevitably increase human prosperity. Fans of the works of Jared Diamond (Guns, Germs, and Steel), Niall Ferguson (The Ascent of Money), and Thomas Friedman (The World Is Flat) will find much to ponder and enjoy in The Rational Optimist.

Learn more about the book here. 

First Look: Heritage Offices

Construction is moving along at The Heritage, formerly known as the Journal Record Building in downtown Oklahoma City. Here’s a first look at what the Heritage Trust offices will look like in our new space. Stay tuned for more updates before our move early next year.

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Professional Perspectives: Business Succession Planning

by Greg Jones CPA, CVA, Partner,  Eide Bailly LLP

The vast majority of businesses in the United States are closely held, family businesses. As a Certified 6692Public Accountant in public practice, I have had the opportunity to work with hundreds of individuals who own and work in a closely held business. I’ve found that the personalities of owners vary. Some are entrepreneurs who have made (or lost) more money than I will see in a lifetime. Others are conservative, never borrowing money and preferring to take the safe road rather than risk everything. Regardless of their style, each successful business owner will probably ponder a question similar to this one: “Who will run my business when I am gone?” If you are that business owner, this question may keep you awake at night. It is a question in which the answer is usually unclear. Fortunately, there are solutions; the best strategy includes designing a succession plan.

Before a plan can be put in place, I usually ask my clients a few basic questions:

  • What role does your business play in your family’s life? Possible answers may include:
    • Providing income
    • Providing employment for family members or long-time employees
    • Providing an opportunity for family members to work together
    • Providing a family identity, such as a legacy from an earlier generation
  • What would you like to see happen to your business in the future? (To whom do you want to transfer the business to?)
  • What is the annual after-tax income you want during retirement (in today’s dollars)?
  • As it relates to your business, what would you like to see happen to your family in the future?
  • In your absence, is the company positioned to run without you?
  • How much time do we have to execute a plan? (What is your desired retirement date?)

Once the above questions are answered, an owner will generally know whether the business will be transferred to a third-party, key employees or family members.

A third-party (perhaps a competitor) can simply purchase the business from the owner. This transaction is simple and typically efficient. The sale can be structured to achieve the selling owner’s goals while limiting the tax burden.

In some cases, a business owner may want to transfer ownership of the company to a key employee or group of employees. This strategy can yield wonderful results if the management team of the company is strong enough to manage the business without the owner. A shortfall is that the key employee(s) may lack the funds to buyout the owner; the owner may end up financing much of the buyout.

In the case of a desired transfer to family members, harmony among the family is an important factor. It is not uncommon for one child to work in the family business while his/her siblings pursue other careers. This is a difficult situation and one that cannot be ignored. Too often I see a family business split several ways when the owner dies. The owner may know one child should receive controlling ownership in the company, but wishes not to upset the rest of the family by creating a succession plan. In a recent case, the son of a business owner, who already managed the business prior to his father’s death, was left with a minority interest in the company. Thus, he was forced to consult his siblings on every major decision of the company, even though those family members knew nothing about the business.

An important component to a business succession plan is to include it as part of a well thought-out and executed estate plan. Gifts of stock, for example, may be part of the succession plan and a part of the overall estate plan. Coordinating the business succession plan with the estate plan is critical.

Family meetings are always a good place to begin discussions about business succession. Additionally, open up communication with key employees and find out their goals. Find trusted advisors to help you work through the business, financial and emotional aspects of a business transition. The sooner you develop and implement a plan, the better the chances that your family and business will be successful for years after your departure.

Greg has more than seven years public accounting experience and provides tax planning and preparation services to a variety of clients, including oil and gas companies, manufacturers, professional service firms and closely held family groups. As a Certified Valuation Analyst, he provides business valuation services for clients in connection with estate planning, buy/sell agreements, partner disputes and employee stock ownership plans. Learn more about Greg here. 

5 Ways to Show Your Financial Plan Some Love

Valentine’s Day is typically about roses and chocolates, but nothing is lovelier than a beautiful investment strategy. Below are five things a savvy investor does to show their financial plan some love. womanheart

1. Stay Curious

Whether you manage your own investments or pay someone to manage them, be informed. Every person should have enough understanding of financial nomenclature to ask educated questions regarding his or her investment accounts, stocks, bonds, mutual funds, etc. Also, be sure to review your statements. It is very important to keep up with your financial position. You never know when you might come across something in your statement that needs clarification. If you do have questions about your financial statement, financial position, or performance, do not be afraid to ask questions. Being inquisitive is key to understanding your financial position, and it is likely you will learn in the process. Your financial advisor should always be willing to provide answers to your questions in terms you can understand, as well as provide you with your financial statements. If your advisor is being evasive, proceed with caution.

2. Control Expenses
Remember that fees, trading costs, and timing of tax gain/loss recognition are the only controllable components of investment returns. Your goal should be to maximize your NET return after subtracting trading costs, management fees, taxes and inflation. If possible, investments should be held for at least a year to recognize favorable capital gain rates, and if you do not know how much you are paying in fees, ask! If your financial advisor leads you to believe you are not paying a fee, find out how they are paid. Is it through 12b-1 fees, loads or commissions? If so, ask yourself if that advisor is truly working in your best interest or working in their own best interest by making investments that increase their commission.

3. Increase Your Savings
At the beginning of every year, you should make it a point to increase your retirement plan contributions and/or personal savings.  Don’t just stop at the amount your employer will match, and if applicable take advantage of Roth options.  While it seems simple, most people do not actively follow a budget and instead, think they intuitively know what they spend and where. But by being intentional about your family’s budget, it will ensure you can accomplish your long-term goals and sets a good example for your children and grandchildren. Make sure you talk with them about the savings process and help pass on these important disciplines.

4. Rethink Charitable Giving
If your individual stocks saw significant capital appreciation last year and you are planning on making a gift to a charity this year, consider making a gift of those shares of stock.  By gifting appreciated stock, you will get the full tax deduction, without having to sell and recognize capital gains.  This allows the charity to receive more, and you’re able to give (and deduct) more.  Also, if you are 70 ½ and are required to take a distribution from your IRA or retirement plan, that amount can also be gifted directly to a qualified charity without recognizing the income.  Contact the business development officer at your favorite charity to find out if this is an option.

5. Talk About Death
Finally, no one likes to talk about the inevitable, but you need to make that a priority this year. That’s what investment is all about: taking care of you and yours. Talk with your family about your estate plans. Take time to create a will or revocable living trust if you do not already have one. Be sure to check the beneficiaries listed on your IRAs, 401(k)s, payable-on-death accounts, and insurance policies. Has someone preceded you in death, been married or divorced? Update the beneficiaries on those accounts if necessary, as they are not subject to your will or probate. Taking time to think through and talk about these issues with your loved ones will ensure your wishes are carried out.

Happy Valentine’s Day from our family to yours. We love serving you.

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INVESTMENT OUTLOOK – First Quarter 2016 Heritage Market Brief

SECURITY SELECTION COMMITTEE VIEWPOINTS

First Quarter 2016

THEMES

  • The Federal Reserve raised rates by 25 basis points in December 2015 for the first time in nearly 10 years, signaling confidence in the U.S. economy.
  • Despite recent interest rate increases, the FOMC remains committed to gradual increases while balancing long-term goals of maximum employment and inflation of 2%.
  • Inflation remains below target as indicated by the year-over-year core Personal Consumption Expenditures Index (PCE less food and energy) reading of 1.33%.
  • The U.S. economy added 292,000 jobs in December, and the unemployment rate remained unchanged at 5%.
  • While wage inflation moderated some in 2015, wages still advanced a respectable 4.5%.
  • Consumers appear healthier as year-over-year real disposable income increased 3.1%, and consumers are saving income at a 3-year high of 5.5%.
  • While consumer health has improved, declining consumer confidence from 99.1 in October to 90.4 in November has kept consumers from spending discretionary income saved from lower oil prices and higher wages.
  • In November 2015, manufacturing entered contraction territory for the first time in 36 months as the strong dollar continues to weigh on exports.
  • While interest rates remain range bound, individual bonds held to maturity should continue to provide downside protection.
  • It is likely that volatility will continue as the Federal Reserve is expected to continue raising interest rates, S&P 500 stocks no longer appear cheap relative to earnings, and revenue growth remains challenging.
  • Emerging market economies remain at risk to rising U.S. interest rates; however, the asset class should be additive to long-term returns as demographics are favorable and the sub- asset class remains attractively valued at under 11 times next year’s estimated earnings.
  • Structural unemployment as well as a slow recovery from a severe recession may be playing a key part in the lowest labor force participation rate in nearly 40 years.

ASSET ALLOCATION

Even after the Federal Reserve raised interest rates for the first time in nearly a decade in December 2015, we expect the central bank to remain committed to an accommodative monetary policy which should keep current yields low relative to historical levels. Thus, we believe an overweight in stocks relative to bonds is appropriate from a risk/return perspective. Our focus on valuations

has led us to believe that U.S. small-cap stocks are becoming more attractive
after underperforming their large-cap counterparts for the last two calendar years. We are still maintaining our underweight to U.S. small-cap equities
but to a lesser degree than over the past couple of years. Despite weaker growth outside the U.S., we remain disciplined and maintain a strategic allocation to foreign markets, especially emerging markets where valuations appear much more attractive. Foreign small-cap stocks should be additive to the portfolio return in the long-run as small-cap companies tend to enjoy higher earnings and cash-flow growth relative to large-cap companies. Since, much of our small-cap exposure is in European small-cap companies, European accommodative policy should prove to be beneficial in the long-run as well. While our fixed income exposure remains underweight due to the current risk/return profile, we continue to purchase individual fixed income securities as bonds play a vital role in the portfolio.

We believe alternative exposure remains vital to portfolio diversification. While
we maintain a position in U.S. REITs, we have taken the opportunity to trim where necessary due to our belief that the asset class has potentially reached overvalued territory after outstanding growth throughout the recovery.

These views represent the opinion of the Security Selection Committee which are based on qualitative as well as quantitative factors. These quantitative factors are primarily driven by valuation research which then forms our subjective assessment of the relative attractiveness of asset classes and subclasses over a 3- to 5-year time horizon.

What Our Heritage Team is Grateful For

In honor of Thanksgiving, we asked some of our team members at Heritage to share what they are grateful for about the OKC community. We’d love to hear what you’re thankful for in comments.

maps_logoIn the community, I am most thankful that in 1993, Mayor Norick had the foresight to encourage a “yes” vote for MAPS at a time when the city was not doing at all well economically.  We all know the results – Billions in investment and a much stronger and vibrant economy.  One person can make a vast difference through strong leadership. – Lance Johnson

I’m most thankful for the opportunity to work with individuals who truly care about their clients. It makes for a very enjoyable place to work and allows us to work better as a team on a daily basis.” – Garrett D. Johnson

imagesI’m grateful for the #OKStandard project by the Oklahoma City National Memorial.  The movement has reminded us of how strong we Okies are and that we do have an amazing spirit of generosity.  We are challenged to continue fulfilling our standard of character by volunteering with an act of service, honor or kindness. – Jennifer Pellow

Being a nearly life-long resident of Oklahoma City, I’m very thankful that this fine town has developed such a pride for itself over the last decade.  It has always been a good place to live…now it is a great place to live…and the sense of pride that now exists around town has been a key driver of that transition. – David Luke

I am grateful for the Brookdale/Statesman Club independent living facility in 33357-1Oklahoma City.  They provide a wonderful atmosphere that keeps seniors engaged and socially active for a better quality of life. – Cathy McKinzie

As Oklahoman’s we are all too familiar with tragedies that touch us all. I am thankful for the outpouring of support, unity and love Oklahoman’s give to one another in the most difficult of times. – Shannon Reed

From the Heritage family, Happy Thanksgiving!

Heritage Book Review: PEOPLE OVER PROFIT

by Kenny Brown, Heritage Trust

November Book of the Month: People Over Profit: Break the System, Live with Purpose, Be More Successful by Dale Partridge41LrZCYGjpL._SX326_BO1,204,203,200_

I came across the book, People Over Profit by Dale Partridge and thought to myself, “most businesses operate the other way around, ‘Profit Over People.'”  I think most would agree it definitely feels that way.

In his book, Dale says, “How you make others feel about themselves says a lot about you.”  It sounded similar to what I have heard our president and CEO of Heritage Trust, Mike Carroll, say on a frequent basis, which is, “It’s about the people, stupid.”  In other words, doing what is in the clients best interest matters.  Being a good listener matters. Being honest matters.  After reading this book, I can confidently say Heritage Trust is a people-over-profit organization.  Whether as CEO of a company or a consumer of goods and services, I would encourage you to read this book and let it challenge and encourage you to be an agent of change in creating a people-over-profit world.

I believe we’re homesick for a version of capitalism we can trust. In my book, I have provided a strong case that companies who value people over profit are actually more profitable. If your heart is calling for a better way, I’m excited to take you on the journey to create the business world we all crave. – Dale Partridge

From the publisher: Sevenly founder Dale Partridge uncovers the seven core beliefs shared by consumers, starters, and leaders behind this transformation. These beliefs have enabled Dale to build a multimillion-dollar company that is revolutionizing the marketplace. He believes they are the secret to creating a sustainable world that values honesty over deception, transparency over secrecy, authenticity over hype, and ultimately, people over profit.

To learn more about the book, check it out here or at your favorite book retailer.

Heritage Trust Investment Process Starts with the Client

John McCollum, CFA, led the team that developed the investment process Heritage John McCollumTrust uses today. In the interview with John below, who now serves as Senior Vice President-Investments with Argent Financial Group, we find out the nuts and bolts behind the Heritage Trust process and how our clients benefit from it.

Why is it necessary to have an investment process?
All investment firms have philosophies that guide their approach to managing portfolios. These core beliefs underpin our entire investment process. The process is i05n place to guide the management of portfolios during normal times but importantly, can also serve to protect portfolios from the human emotions that come with times of euphoria and stress. The process serves as a constitution of sorts.

How was the process developed?
The investment process at Heritage Trust was developed over years of study, observation, and reflection and resulted in an approach to managing investment portfolios that struck the proper balance between the art and science of investing. We set out to develop an approach to portfolio construction that took the best parts of Modern Portfolio Theory, the well accepted idea that diversification reduces risk, and blended it with a system of in-house asset class and security valuation, a focus on the minimization of fees and taxes, a recognition that it is difficult to outperform in many asset classes and finally the use of a dedicated portfolio manager to interpret the individual risk and return needs for each account. The result is customized portfolios that mitigate risk while enhancing return.

What are the strengths of the process that continue to make it work for Heritage Trust today?
Like the Constitution, the policies that underlie the Heritage Trust investment process should stand the test of time. Market conditions change. Valuations change. Expectations for growth, inflation, and productivity change. One’s overall approach to investment management must be adaptable to changing market conditions. The approach remains the same, even if the outcomes or the people involved in the process change. I think it is that aspect of the Heritage Trust approach that makes it so valuable to Heritage clients. It does not rely on the opinions or forecasts of one person. It has been embedded in the organizational approach to managing investments.

How do Heritage Trust clients benefit from the process?
The values of Heritage Trust are rooted in our fiduciary duty to always act in the best interest of clients, and our investment process was developed around that. We understood that excessive, and in many cases unnecessary, fees harmed investor’s long-term returns. We also understood that unnecessary trading and frequent portfolio adjustments mostly detracts from long term results. As a result, the established investment process provides a customized portfolio based on the individual’s needs, time horizon and risk tolerance while minimizing fees for the best possible net return.

John, you’ve been involved with Heritage Trust since 2000 and you’re now a leader in our sister company Argent Financial. What is one aspect of Heritage Trust that has kept you involved?
I most appreciate the people and the way clients are valued at Heritage Trust. The team at Heritage genuinely puts client interests first. I think the Heritage Trust investment process is driven by the motivation to do the right thing for clients’ long-term investment performance even if it means not doing the popular thing.

Learn more about John’s new role with Argent Financial Group here. 

INVESTMENT OUTLOOK – Fourth Quarter 2015 Heritage Market Brief

SECURITY SELECTION COMMITTEE VIEWPOINTS

Fourth Quarter 2015

THEMES

  • Despite a 5.1% unemployment rate and second quarter GDP revision up to 3.9%, the Federal Reserve did not raise interest rates on September 17th as the committee feared higher U.S. interest rates would further strengthen the U.S. dollar and cause further weakness among emerging markets
  • During the third quarter, the market experienced its first correction in four years upon heightened concerns surrounding China’s slower expected economic growth, the strong U.S. dollar, weak oil prices, and reduced capital spending in response to the former
  • While corporate credit spreads have increased over the last 6 months, the current default rate of 2.3% remains relatively low compared to the historic default rate of 4.5%; therefore, we currently view this as an opportunity to buy corporate debt where necessary and appropriate rather than viewing it as an economic health warning
  • U.S. auto sales soared 16% in September and are on track to reach a 10-year annualized high of 18.17 million units
  • Housing remains strong with new home sales at the highest level since February 2008
  • U.S. consumers remain healthy as signaled by a 3.2% year-over-year increase in disposable income
  • With September nonfarm payroll additions of only 142,000 relative to an expected 200,000, continued global growth uncertainty, and inflation levels below 2% with no sign of increasing as indicated by TIPs and commodity prices, it is very likely the Fed will postpone its first rate hike until 2016
  • While interest rates remain range bound, individual bonds held to maturity should continue to provide downside protection
  • It is likely that volatility will continue as long as the market remains concerned about the timing of rate hikes and global economic health
  • Emerging market economies remain at risk to rising U.S. interest rates; however, the asset class should be additive to long-term returns as demographics are favorable and the sub- asset class remains attractively valued at just 10.7 times next year’s estimated earnings.
  • Structural unemployment as well as a slow recovery from a severe recession may be playing a key part in the lowest labor force participation rate in 37 years.

ASSET ALLOCATION

We expect the central bank to remain committed to an accommodative monetary policy which should keep current yields low relative to historical levels. Thus, we believe an overweight in stocks relative to bonds is appropriate from a risk/return perspective. Our focus on valuations has led us to believe that U.S. small-cap stocks are rich relative to historical long-term averages. Therefore, we have taken the opportunity to trim from U.S. small-cap equities in order to lock-in gains and increase our exposure in asset classes that are more attractively valued. Despite weaker growth outside the U.S., we remain disciplined and maintain a strategic allocation to foreign markets, especially emerging markets where valuations appear much more attractive. Foreign small-cap stocks should be additive to the portfolio return in the long-run as small-cap companies tend to enjoy higher earnings and cash-flow growth relative to large-cap companies.

Since, much of our small-cap exposure is in European small-cap companies, European accommodative policy should prove to be beneficial in the long-run as well. While our fixed income exposure remains underweight due to the current risk/return profile, we continue to purchase individual fixed income securities as bonds play a vital role in the portfolio.

We believe alternative exposure remains vital to portfolio diversification. While we maintain a position in U.S. REITs, we have taken the opportunity to trim where necessary due to our belief that the asset class has potentially reached overvalued territory after outstanding growth throughout the recovery. Additionally, we continue to hold our strategic weight in commodities despite recent lackluster performance. We believe that the long-run inflation hedge as well as diversification benefits will be well rewarded in time.

These views represent the opinion of the Security Selection Committee which are based on qualitative as well as quantitative factors. These quantitative factors are primarily driven by valuation research which then forms our subjective assessment of the relative attractiveness of asset classes and subclasses over a 3- to 5-year time horizon.

Click on here to view the PDF version. 

Heritage Book Review: THE OPPOSITE OF SPOILED

by Kenny Brown, Heritage Trust

October Book of the Month: The Opposite of Spoiled by Ron Lieber51pk7D-zV3L._SX331_BO1,204,203,200_

My wife, Erin, and I recently traveled to Denver, Colorado and visited a popular candy store downtown. Anyone who knows me knows how much I love candy and my inability to discipline myself, either when purchasing or consuming it. I paid for my lack of self-control later that evening when I consumed almost a pound of gummy bears. Why do we, even as adults, continue to make poor decisions when we know the consequences of our actions? My initial thought when we entered the candy store was “I am on vacation, I can spoil myself as I worked hard this week and I deserve it!” Unfortunately, for many of us it is this same attitude we have about our money. We make poor financial decisions, because we work so hard and the thought of having to wait to make that purchase makes it almost impossible. It wasn’t until I had read The Opposite of Spoiled by Ron Lieber did I realize my behavior as an adult was a reflection of the habits I developed as a child. The good news is that inside Ron’s book are great ideas and suggestions from other parents that can help to establish and reinforce the behaviors that can create long-term financial success for generations to come.

According to the author, “The Opposite of Spoiled is a generational manifesto first and foremost—a promise to our kids that we will make them better at managing money than we are and give them the tools they need to avoid the financial traps that still ensnare so many adults.” So, I have to fully disclose: I don’t have kids, which is sort of ironic that I would be reading such a book. But here is the thing: I really want kids. My role as a relationship manager at Heritage Trust and as a future parent led me to this book, and I knew I had to read it!

  • The first part of the book does a great job of breaking down and analyzing why it is so difficult to even talk about money especially with our kids. The biggest take-away from reading this book was the reality that if I remained silent on the issue of money when I have my own kids, that someone else “wouldn’t” be. Now I feel much more prepared to answer questions about money and handle decisions regarding giving an allowance or teaching them to be disciplined and comfortable with delayed gratification.
  • Overall, I highly recommend the book even if your children are already grown and you want to learn more about it yourself. I think it gives great insight in a practical sense of our own biases and views on money – especially the final chapter when the author ask the readers, “How much is enough?” I love the author’s final plea as not to overemphasize the topic of money, “So over the 20 years or so that our children live with us, we should try to have just enough conversations about money and the values behind our financial decisions. Only then will they have a complete picture of where we stand, what we stand for, and how we make financial decisions.”

As one who may be a parent in the not too distant future, I really appreciate the author’s decision to do this project and incorporate so many great ideas from others who have had to learn the hard way. Get the book here or your favorite book retailer.

The Greatest Gifts

by Phil Buchanan, Argent Financial Group

My mother was born just prior to the stock market crash of 1929 and the ensuing Great Depression. Although only a child during this period, she quickly learned to be a good steward of finances. It was a trait that followed her for the rest of her life. It was also something that she sought to instill in my sister and me. I can now look back and realize that her teachings with regard to the honor and value of work, of the necessity of saving and investing, and of the nobility of philanthropy, were among the most important and greatest gifts she gave to me.

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In a society where financial information is more readily accessible than ever, I observe many families who are not engaging their rising generations in meaningful conversations with regards to wealth, its purpose, its capacity and its stewardship. While the immediate risks of not engaging in such dialogue are limited, the longer term impacts can be quite negative.

At an appropriate age (most professionals tend to suggest between 14 and 17), children of families with means need to be brought into discussions as to the foundational beliefs and values that the family shares with regards to wealth. A basic primer on the structure (not value) of the family’s wealth situation (business interests, core portfolio holdings, royalty interests, etc.) is usually advisable at this time as well.

As children continue to demonstrate interest and maturity towards learning more, these discussions and teachings should continue. One of the greatest risks a family can take with regard to wealth is failing to educate and prepare future generations. With a bit of effort and patience along the way, you can ensure proper stewardship of wealth for generations to come.