“What we do in life ripples in eternity” Marcus Aurelius

Good morning, It’s hard to believe that we are cruising into December already, time to get those lights up Clark!

I was reading an article in The New Yorker on the weekend, about former General Electric CEO Jack Welch…there was a section of it that struck me…. Welch, one of most powerful and wealth executives of his time, had an interesting and unfortunate relationship with his wealth and its impact on his family. The article references interviews of Welsh by author William Cohan, who wrote his acclaimed book Power Failure: The Rise and Fall of an American Icon…..Cohen states of “The only time he spoke about his children was when he told me that he ‘loved them to pieces’ but that he had made ‘a mistake’ when he gave each of them a bunch of G.E. stock when he first became C.E.O.,” Cohan writes. Because the stock had performed well, they each had something like fifty million dollars in company shares. Although two of his four kids went to Harvard Business School and one went to Harvard’s Graduate School of Design, they all quit their jobs, disappointing their father. “They turned out differently than I’d hoped,” Welch tells Cohan. “We’re close. But they got too much money. . . . If I had to do it all over again, I wouldn’t have given it to them.”

Interesting insight into a reflection from Jack Welch, who some view as either the greatest C.E.O. of his time, or some feel the worst. A fathers reflection, after a lifetime, on his relationship with his children, and concludes that their decisions did not align with his vision. What could Jack have done to avoid such a regret…..?

Our wealth has a ripple effect

A ripple effect occurs when an initial disturbance to a system propagates outward to disturb an increasingly larger portion of the system, like ripples expanding across the water when an object is dropped into it.

Whether we have 500 thousand dollars or 500 million dollars, our time and energy that we spend in creating wealth has an impact on the environment around us, including our family. We spend all of our time creating, protecting and growing, it’s not often enough that we spend time reflecting on our “Why”, taking time to understand our purpose, and developing meaning around our life’s ripples.

As an advisor to wealthy families, we believe that what happens to the wealth acquired in one generation depends on planning and thoughtful preparation. A successful family need to employ as much time and dedication into continuity planning as they have in to building the wealth that they have realized. We all have a family enterprise that, with proper planning and strategy, can continue to grow and thrive through generations.

Finding perspective can turn ripples of regret into waves of pride

My view is that wealth commands responsibility, discipline and intention. It’s this intention that serves to ensure that we develop our own perspective and understanding of what we want ultimately from wealth, a vision that clear for our family system to see. As long as we manage expectations and pass down this understanding, wealth can provide boundless opportunity for our family. In our work with families, we notice a common assumptions about wealth that is based on fear of wealth destruction and distrust of one’s children. In family meetings that we facilitate, we shift perspective based on work from Dr Dennis Jaffe, and suggest that wealth creators consider these more positive and empowering assumptions:

• I trust my children because I have taught them what I have learned and believe and helped them get a great education.
• Wealth is a gift that will allow my children to form wonderful lives and serve the community.
• Since I don't know what challenges my children will face, the best I can do is to prepare them to make wise decisions.
• I can prevent conflict in the next generation by teaching them how to work together with respect and compromise.

If we spend time in creating structures that promote communication through family meetings, we can ensure that wealth can continue to flourish across generations and provide the future opportunities to discover their own authentic happiness. Life begins when you take responsibility for where you are, where you want to be, and what you want to leave behind. These new assumptions can not only help alleviate the fears of the wealth holder but are also the foundation for the best kind of inheritance their children could receive.

“We are here but for a second, but our impact ripples through time” Neetal Parekh

As we head into the week, be mindful of your vision and intentional with your planning, every drop of wealth has a ripple effect on your world, build something that outlives you.

Be well and enjoy the moments

Derek