Okay, let’s start with the summary. Parents build an empire; entitled children squander the inheritance; grandchildren (usually educated courtesy of the grandparents) have to fend for themselves but never attain the level of wealth of the grandparents.

So, back to the question: “Whatever happened to the family dynasty?”

What is it that we are (not) teaching our children that makes them not carry the baton of wealth forward? Is it that our consumer-based lifestyle indoctrinate them with an acquisition-&-spend mentality? Does that lifestyle instill a craving for convenience, all of which we reinforce with the upbringing we give them? Who, then, will teach the principles of acquiring and maintaining wealth to the third generation?

Who will teach the principles of acquiring and maintaining wealth to the third generation?

Throughout my career in banking and accounting, I’ve been fortunate enough to see the back-end view of people’s finances. That, coupled with keen observation and an analytical mind, has given me the perspective I am going to share. Mind you, this is from what I have seen and does not cover all scenarios.

I am the kind who walks into a store, restaurant, event and starts calculating the business income based on patronage and assumed associated activities. Sometimes that was good because that tendency, along with my “insight” into actual data from branch banking, allowed me have a basis for evaluating the local economy and determining whether the analyses spouted by economic pundits held water or not. On the other hand, sometimes I overspent because I felt guilty, like I was taking advantage, when I surmised that I was in one of those restaurant-on-the-brink scenarios.

I have seen where some of the most humble persons would die leaving legacies while, too often, some of the flashiest spenders were flirting with bankruptcy.

However, I was able to evaluate which local businesses were stable and steady earners (accounting, wholesalers, hairdressing and car repairs) and which were flash–in–the–pans (new technology, fashion boutiques). Through branch banking, I was able to interact with some of their owners and managers and gain insight into the why.

What I learned was never to judge a book by its cover since some of the most humble looking persons would die leaving legacies while, too often, some of the flashiest looking spenders were flirting with bankruptcy. One revelation I remember to this day was that the house (in the best residential area) which the bank leased for it’s expatriate General Manager (President in US terms) was owned by a man who lived in my neighborhood (a regular part of town).

So how does all this relate to the original question and how can you benefit from this perspective? Let us look at three aspects: Financial attitude, income generation, and living arrangements.

Financial Attitude

It starts with financial attitude—understanding the difference between being rich versus being wealthy.

One is a fragile, in-the-moment position that requires daily maintenance, while the other is an asset-secured position that provides long-term stability against fluctuating fortunes.

Become wealth-focused and investigate and understand the steps to attaining and maintaining wealth.

Then teach your children from a young age to be financially responsible and just as determined to maintain that status.

Over the years, I noticed that people who shared multi–generational family homes saved more, borrowed less, and carried lower credit card balances than persons from single family homes. It seems that independence from family, like convenience, comes with an imperceptible cost.

Career Choice and Income Generation

Another observation was that the wealth progression of persons earning similar incomes differed according to the financial stability of their close family and well as their cultural norms.

Put another way, those who earned significantly more than their close relatives (usually first generation university graduates) and were from cultures which valued close, large extended families tended to become funding sources for the clan. Now compare that to those from families whose relatives were on a more level financial plain These folks were able to retain more of their income for wealth building.

Choose stable careers/businesses for income/revenue generation. Doctors who beget doctors who beget doctors create dynasties. Pilots who beget racing car drivers who beget realtors don’t. Diversification is good if the clan covers sectors beneficial to all such as banking/finance, legal/accounting, medical/engineering, even some government/politics.

Choose stable careers/businesses for income/revenue generation. Doctors who beget doctors who beget doctors create dynasties. Pilots who beget racing car drivers who beget realtors don’t.

This does not rule out getting involved in new technologies and emerging sectors. While the lure of hitting it big with developing a new Microsoft is heady, remember you stand a greater chance of steady success in any new technology by providing support that is transferable across technologies rather than supplying a unique part for one machine.

In other words, with new technologies write and maintain the code rather than design the program. Supply the parts rather than build the housing. It’s not that I am advocating for thinking small; just recognize there is space for only a few Bloomberg, Gates, Musk per industry/generation, but that maintaining the systems they create is long-term and transferable.

Living Arrangements

Take a look at multi–generational living arrangements using a high profile example of the British royal family. Same houses over the centuries; that is wealth retention. Not each generation marching off to the bank for a mortgage (sometimes three time in a lifetime) that goes out the door many time before the loan is paid off. So much wasted interest paid that could be used to build family wealth.

Choosing a location for the family–dynasty residence should be the most important factor. It must be a location that will withstand societal migrations and devaluation from urban blight; so choosing locations in proximity to historical neighborhoods or large tracts (preferably undeveloped) of government properties is key.

Additionally, the property should be large enough to comfortably accommodate three generations. I am not advocating for the ridiculous 1000+ sq. foot per person requirement that seems to have taken hold in recent years; remember someone has to clean the windows and floors. A duplex/triplex townhouse or a similar multi-apartment building in the city, or a multi-entrance house on a larger tract of land a little distance from town is more like it. An arrangement that provides sufficient autonomy and privacy for each family unit and still allows for family control is ideal, but there are many possible hybrid situations to consider.

Determine what arrangements could be made with parents or grandparents to secure their property for generations.

Initially, a larger property will be more expensive but will maintain value through several generations. Then again, you could start by looking first at what the family already has that meets the above criteria. Determine what arrangements could be made with parents or grandparents to secure their property for generations while continuing to provide them with financial security plus the physical safety of an extended family life.

When I was growing up it was normal for several generations to share the same home, with each person’s contribution to daily life being valued. Besides parents and siblings, shared housing with cousins, auntie and/or uncle was not uncommon.

Children always had the supervision (read no cost childcare) of the older folks and so were more mannerly and respectful.

In turn, they were expected to do for their grand parents in terms of fetching, lifting, and carrying (read free labor) as well as doing age-appropriate chores.

Parents provided financially for the household having benefited from reduced (read no mortgage/rent) accommodation costs. They were also the final arbiters of discipline; usually following the phrase “Come here, your grandmother said …”

Other Important Aspects

That’s a lot to take in at one go and should make for some interesting discussions if not disagreements—but that’s family life. However, there is more, much more that just these three topics to consider when thinking as grand and long-term as dynasty planning. This may sounds pretentious to some, but it’s just practical to me.

So, what next? Start by looking at the articles below. Then browse around the website for other articles and keep coming back for new ones. Like everything here, there are a few ideas that you can implement right away, but most will take thinking, planning and a bit longer to put in effect. Remember, Time = Life. As long as we’re alive, we have the time to make the life we want. So, get moving. Now.