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recent bookmarks from jerrykingReview: Rogers v. Rogers chronicles a critical moment in the history of Canadian telecom - The Globe and Mail2024-02-19T20:48:58+00:00
https://www.theglobeandmail.com/arts/books/reviews/article-rogers-v-rogers-chronicles-a-critical-moment-in-the-history-of/
jerrykingbooks book_reviews family_businesses feuds heirs oligopolies Rogers telecommunicationshttps://pinboard.in/https://pinboard.in/u:jerryking/b:0279341eba9a/The Greatest Wealth Transfer in History Is Here, With Familiar (Rich) Winners2023-05-17T00:06:10+00:00
https://www.nytimes.com/2023/05/14/business/economy/wealth-generations.html
jerryking>In an era of surging home and stock values, U.S. >>family wealth<< has soared. The trillions of dollars going to heirs will largely reinforce inequality.<<
An intergenerational transfer of wealth is in motion in America — and it will dwarf any of the past......By 2022, total family wealth in the United States had more than tripled, reaching $140 trillion. Of the $84 trillion projected to be passed down from older Americans to millennial and Gen X heirs through 2045, $16 trillion will be transferred within the next decade........Heirs increasingly don’t need to wait for the passing of elders to directly benefit from family money, a result of the bursting popularity of “giving while living” — including property purchases, repeated tax-free cash transfers of estate money, and more — providing millions a head start.......The wealthiest 10% of households will be giving and receiving a majority of the riches. Within that range, the top 1% — which holds about as much wealth as the bottom 90%, and is predominantly white — will dictate the broadest share of the money flow. The more diverse bottom 50% of households will account for only 8% of the transfers.....A key reason there are such large soon-to-be-inherited sums is the uneven way boomers superbly benefited from price growth in the financial and housing markets...............The boomers who benefited most from decades of price growth in real estate and >>financial assets<< were, in general, already rich, white or both — attributable, in part, to years of housing discrimination and a lack of access to financial tools and advice for people of color...............But the wealth transfer in its full scope, like any widespread financial phenomenon, will have many nuances: A patchwork of lower-wage earners may be able to move into a parent’s paid-off home in a hot housing market — or may receive a small windfall still meaningful enough to pay off debts......And there will be millennials, Gen X-ers and young boomers in the upper middle class set to inherit lump sums — seemingly winners — who will wrestle with the substantial headaches of a “sandwich generation,” dealing with the expense of caring for aging parents and children at once.
There are few aspects of economic life that will go untouched by the knock-on effects of the handover: Housing, education, health care, financial markets, labor markets and politics will all inevitably be affected.
**The Role of the Tax Code**
High-net-worth and ultrahigh-net-worth individuals — those with at least $5 million and $20 million in cash or easily cashable assets — make up only 1.5 percent of all households. Together, they constitute 42 percent of the volume of expected transfers through 2045...... That’s about $36 trillion as of 2020 — numbers that have most likely increased since........The scale of the transfer is made possible in part by the U.S. tax code. Individuals can transmit up to $12.9 million to heirs, during life or at death, without federal estate tax (and $26 million for married couples).
As a result, although high-net-worth and ultrahigh-net-worth individuals could inherit more than $30 trillion by 2045, their prospective taxes on estates and transfers is $4.2 trillion.]]>wealth_management wealth_transfers baby_boomers family Generation_X generational_wealth generations heirs high_net_worth income_inequality inheritances tax_codes family_wealth financial_assetshttps://pinboard.in/https://pinboard.in/u:jerryking/b:d0190c2635d4/For Juneteenth, Black Family Heirlooms Carry the Past into Today2022-06-20T02:28:09+00:00
https://www.nytimes.com/interactive/2022/06/17/arts/black-family-heirlooms-juneteenth.html
jerrykingAfrican-Americans ancestry collectibles contextual family family_history family_records family_trees generational_wealth heirloom heirs Juneteenth memories narratives oral_history origin_story personal_connections photography pictures posterity preservation private_records record-keeping storytelling kinship traditions family_ritualshttps://pinboard.in/https://pinboard.in/u:jerryking/b:4d37ac7d653d/Opinion: To understand where you came from, and leave behind who you are, save your family history - The Globe and Mail2021-12-19T18:38:06+00:00
https://www.theglobeandmail.com/opinion/article-to-understand-where-you-came-from-and-leave-behind-who-you-are-save/
jerrykingancestry contextual family family_history family_records family_trees folklore gift_to_the_future heirs kin_work legacies lessons_learned narratives origin_story personal_connections pictures posterity record-keeping storytelling oral_history memories photography private_recordshttps://pinboard.in/https://pinboard.in/u:jerryking/b:3042adf5a0e5/The Art of Passing Down Heirlooms - Barron's2020-03-29T02:04:19+00:00
https://www.barrons.com/articles/the-art-of-passing-down-heirlooms-51585396802?mod=hp_minor_pos26&adobe_mc=MCMID%3D89429908468012366312439885021486734959%7CMCORGID%3DCB68E4BA55144CAA0A4C98A5%2540AdobeOrg%7CTS%3D1585447367
jerrykingcollectibles generational_wealth heirs wealth_transfers family transcendentalhttps://pinboard.in/https://pinboard.in/u:jerryking/b:99fd812cb351/Europe’s Old Money Mingles With Tech Startups2020-03-09T01:37:22+00:00
https://www.wsj.com/articles/europes-old-money-mingles-with-tech-startups-11583511875?mod=lead_feature_below_a_pos1
jerrykingEurope family-owned_businesses start_ups technology Atomico family_office founders heirs high_net_worth old_money vc venture_capitalhttps://pinboard.in/https://pinboard.in/u:jerryking/b:67d537d2cb4a/What’s Left After a Family Business Is Sold?2019-08-28T22:39:57+00:00
https://www.nytimes.com/2019/08/09/your-money/whats-left-after-a-family-business-is-sold.html
jerryking>shared identity<< and conferring a status in the community established by previous generations.
Without the company, the family’s perception of itself [i.e. = "self-perception"] and its purpose can change, and it is often something that members are not prepared for. Their focus was on running the business and then on the sale; little thought went into what comes next......“The key to doing it successfully is how you prepare yourself and how you prepare your family. It’s really a lifestyle choice.”
If families do not do it right, splitting apart is almost inevitable. “A shared business becomes very much a glue,” ....“When the business is sold, what we see in almost every situation is some family member splits away.” .....Most advisers say the sale of a family business should focus on the transition from operating a company to managing a portfolio of money, not on the money itself. Sometimes the magnitude of the sale becomes an issue for a family’s identity, particularly if the acquisition price becomes public......some families focus more on the money than the traits that made the business successful, and fail to grasp the difference between an operating business and financial capital. ....years before the sale, the family had been formulating a plan for its wealth that focused on family values but also held the members accountable. A family scorecard, for example, tracks their progress on 40 items that the family has deemed important, including working hard, investing wisely and the protecting its legacy.
Mr. Deary said the family used the scorecard to objectively answer the question: “Are we constantly trying to get a little bit better every day at what we do?”
As the wealth stretches out and families grow, those values can become a substitute for the company......continuing education about a family’s values, particularly when the company was gone, allowed successive generations to understand where their wealth came from.
Those values often work best when they are broad — honesty, integrity, hard work — and not so specific that family members chafe. “The loose binds bind best,” [i.e. = "family dynamics"]
Family relationships can suffer when there are no shared values but strong financial connections, like a large trust or partnership that manages the wealth.
]]>accountability exits family family_business family_office family_scorecards family_values generations generational_wealth purpose relationships Second_Acts self-perception unprepared values wealth_management heirs money_management liquidity_events family_dynamics shared_identityhttps://pinboard.in/https://pinboard.in/u:jerryking/b:b629f57a09a0/Andrea Illy: adapting a family business to a multinational world2019-07-24T22:11:08+00:00
https://www.ft.com/content/45d20f58-a6e4-11e9-b6ee-3cdf3174eb89
jerrykingalliances boards_&_directors_&_governance climate_change coffee coopetition dynasties family family_business family-owned_businesses financial_buyers heirs high-quality investors JAB licensing Nestlé premium private_equity privately_held_companies stewardship sustainability the_counsel_of_the_dead virtuous_cycles Illycaffè Generation_Z millennialshttps://pinboard.in/https://pinboard.in/u:jerryking/b:edb91d70a635/Family offices become financial titans - Super-help for the super-rich2019-01-21T00:09:07+00:00
https://www.economist.com/briefing/2018/12/15/family-offices-become-financial-titans
jerrykingfamily_office heirs high_net_worthhttps://pinboard.in/https://pinboard.in/u:jerryking/b:157f4c569b09/An unusual family approach to investing2018-05-31T22:33:43+00:00
https://www.ft.com/content/1bb6e766-6329-11e8-a39d-4df188287fff
jerryking>long-term growth<< provided the business is efficiently run.
This is more congenial than heading a public company and contending with a huge variety of shareholders, including short-term and activist investors. It is also less risky than being bought by 3G Capital, the cost-cutting private equity group with which Mr Buffett teamed up to acquire Kraft Heinz. While 3G is expert at eliminating expenses it is less so at encouraging growth.
]]>coffee dynasties high_net_worth holding_periods investing investors JAB long-term Nestlé private_equity privately_held_companies Unilever unusual Warren_Buffett family cafés Pret_A_Manger 3G_Capital discretion entrepreneur boring family_business Pritzker heirs long-term_growthhttps://pinboard.in/https://pinboard.in/u:jerryking/b:641a603fd0fb/What It Was Like to Finally Write My Will2018-04-03T21:27:14+00:00
https://www.nytimes.com/2018/04/03/smarter-living/writing-will.html?rref=collection%2Fsectioncollection%2Fsmarter-living
jerrykingestate_planning personal_finance lists wills heirshttps://pinboard.in/https://pinboard.in/u:jerryking/b:3630c15958ba/To Find the Right Financial Adviser, ‘Do a Beauty Contest’ - The New York Times2018-03-26T20:22:12+00:00
https://www.nytimes.com/2018/03/22/your-money/financial-adviser.html
jerrykingpersonal_finance financial_advisors beauty_contests howto heirshttps://pinboard.in/https://pinboard.in/u:jerryking/b:23e523a03f1a/Trump, Kushner and the businessman fallacy2018-03-10T13:07:58+00:00
https://www.ft.com/content/5633a3ba-2199-11e8-a895-1ba1f72c2c11?segmentId=afe650f4-0d57-e9b2-a3b3-2fd03cff56c0#comments-anchor
jerrykingSimon_Kuper Donald_Trump Jared_Kushner nepotism White_House conflicts_of_interest oversimplification privately_held_companies family-owned_businesses hubris generalists businessman_fallacy heirs self-imageryhttps://pinboard.in/https://pinboard.in/u:jerryking/b:e681ba0c7530/Why wealthy families lose their fortunes in three generations - The Globe and Mail2017-01-26T23:06:00+00:00
http://www.theglobeandmail.com/globe-investor/globe-wealth/eroding-family-fortunes-how-the-cycle-can-be-broken/article33757468/
jerrykingattrition_rates wealth_management family values generational_wealth Tom_McCullough Northwood family-owned_businesses family_business Communicating_&_Connecting mission_statements entitlements mindsets family_office work_ethic stewardship heirs sense_of_entitlementhttps://pinboard.in/https://pinboard.in/u:jerryking/b:7f01977114b1/How the Superwealthy Plan to Make Sure Their Kids Stay Superwealthy -2015-10-13T13:57:08+00:00
http://www.bloomberg.com/news/articles/2015-10-01/how-the-superwealthy-plan-to-make-sure-their-kids-stay-superwealthy
jerryking>failure rate<< is still commonly cited by advisers as a reason to engage their services.
“In our experience, there’s no amount of money that can’t be lost,” says Sheila Stinson, until recently director of family education at GenSpring Family Offices in Jupiter, Fla., a hamlet north of Palm Beach that’s been home to Michael Jordan, golfer Rory McIlroy, and Celine Dion. The firm, whose clients are worth at least $50 million each, created the Innovation & Learning Center in 2006 to lead workshops and teach classes.
One of its innovations is a board game called Shirtsleeves to Shirtsleeves that Stinson has played with clients and their children over cocktails or lunch, depending on their ages. Players get money in $1 million, $5 million, and $10 million denominations. They navigate a Chutes & Ladders-like board through obstacles such as: “Your beach house in Malibu has become the place to be for your kids. Even though they’re in their mid-thirties and can’t show up for a family meeting, they never miss the afternoon set. Wipe out! LOSE $9 million.”
For younger kids, Stinson has used a game called Money Matters, which features flashcards showing pictures of material goods. She asks the children to tell her if the item is a “need” or a “want,” something they can do without. She recently showed a picture of a purse to four girls aged 9 to 11. One girl called it a want. Another said no, a Tory Burch handbag is essential.
Ascent, a division of U.S. Bancorp, chose a youthful look for its offices, in Cincinnati, Denver, Minneapolis, San Francisco, and Seattle. The décor is all white, inspired by Apple stores and Virgin America aircraft cabins. In San Francisco, in a 21st-floor suite overlooking the bay, there’s a room where kids can relax while their parents talk to the staff. It has a couch, a white beanbag chair, and an Xbox.
Ascent’s craft has a lofty history. Family offices trace their lineage to 6th century royal stewards and, in the 19th century, advisers who managed art, collectibles, and homes for J.P. Morgan and other tycoons of the era. There are now some 3,000 such firms worldwide, at least half set up in the last 15 years, according to a 2013 Ernst & Young report.
Good help doesn’t come cheap. Ascent charges clients a minimum of $200,000 a year. Some don’t keep any money with the firm and only use its ancillary services, Cole says. The firm’s Center for Wealth Impact offers a director of family history and two “wealth dynamics” coaches trained in organizational psychology. The idea is to focus on the breakdowns in trust, communication, and education spotlighted in Williams and Preisser’s book.
Demons lurk for the wealthy, to the point that some researchers suggest that affluence creates a greater risk of depression, anxiety, and substance abuse. In one 1999 study of wealthy high school girls in a suburb in the Northeast, 1 in 5 reported clinically significant levels of depression, three times higher than the national average. Wealthy boys showed more anxiety than average in a study by Suniya Luthar, a professor emerita at Columbia. Later research across the country has produced similar results. Rich kids have to navigate a complicated psychological stew, including guilt over inherited wealth and stress from the pressures of living up to a family legacy.
Ascent tries to head off problems by getting families to think about their mission and purpose, much as corporations do. Amy Zehnder, a senior wealth dynamics coach, says she asked one family’s three boys, ages 15, 19, and 21, to create a visual representation of the clan’s core values. The boys returned with a drawing of a custom Jeep, each part corresponding to a different value. The antenna represented communication; the snowboard rack was work-life balance; the windshield, integrity; the engine, loyalty; the steering wheel, drive; the headlights, respect; the massive tires, ambition; and the lift kit, growth. Their dad was touched, Zehnder recalls. “As a family they made a decision that they were going to go and build this Jeep,” she says.
Cornerstone, the advisory firm in Belle vue, manages more than $3 billion. It taught its first class to three sets of siblings in 2006, after a client asked for financial instruction for her sons. Managing Director Sue Peterson went to a Barnes & Noble and found books for toddlers about quarters and dimes, some Suze Orman financial titles, and little else. Peterson developed her own curriculum, eventually expanding it to a half-day of lessons on budgeting, credit cards, and investments. Parents spend the time in their own session, comparing notes. “How do you teach your kids about how fortunate they are?” Peterson says. “If you drive past Bellevue High, most of the cars pulling into the parking lot are nicer than mine.”
Liam Whitfield’s mother, Diane, heard about the class through a friend of her husband, Bill, a real estate investor. The family lives in Broad-moor, a gated enclave with a private golf course where the median home lists for $2.1 million. The Whitfields have three sons: Liam, Stanley, 16, and Trammell, 8. They’d been thinking it was time for their older sons to start taking more ownership of their finances, Diane says. Liam might pay for all his friends to see a movie, while Stanley might spend his lunch money on video games.
“Just as much work goes into these kids that have money coming their way as kids that don’t,” she says. “The psychological component is huge: How do they mix with their friends? Do they only hang out with kids who have money?” Most of all, she’s tried to explain that with wealth comes responsibility. Whitfield was drawn to a famous tale of a man who brought his salary home in dollar bills to show his children where the money went. “You know when your kids say, ‘Why don’t we have a pool?’ ” she says. “It’s because, well, we’re choosing to take you to Europe instead.”
After warning them that, yes, it might be a few hours of total boredom, she brought Liam and Stanley to the Cornerstone course. For Liam, who entered college this fall, the class was part of preparing to live on his own; his parents later asked him to write a budget for the summer. He’s sometimes had awkward situations with friends. “I don’t carry cash on me, because I don’t like it when someone says, ‘Oh, Liam, you can afford it, so you should pay for it,’ ” he says.
As his persistent questioning in class showed, Liam is ready for more. He says he hopes to start joining in on family foundation meetings soon. An Eagle Scout who also swam, played football, and went to the district championships in shot put, he wants to become an orthopedic surgeon. He plans to take premed courses at Westmont College in Santa Barbara, Calif., the school where his parents met. He’s found that too many kids of his generation, used to instant gratification from social media, find it easy to coast.
“We have everything at our fingertips,” he says. “It’s absurd, actually.”
START!*
Your son gets a NetJets account.
Lose $850,000
Your daughter’s internship at the family business is going great. She persuades the sales team to target a new market.
Earn $10 million
Cousin Sally eloped? And there’s no prenup at all?
Lose a turn
The detox clinic gives your grandchildren a group discount.
Lose $14 million
It’s summer. The kids forgo a month in Southampton to volunteer together at a shelter.
Move ahead
Leonardo DiCaprio drugs you on an airplane, invades your dream, and persuades you to break apart your late father’s energy empire.
Lose $65 billion
“It’s not a cult, Mummy, it’s a mindfulness seminar.”
Lose $15,000
Junior gets a job! A part-time job. Which pays on commission. And doesn’t start until surf season ends. OK, yeah, this isn’t a real job.
Lose $9 million
Rich Kids of Instagram devotes an entire week of posts to your family.
Lose $75,000
The family votes to sign Bill Gates and Warren Buffett’s Giving Pledge.
Donate half of net worth
DIAGRAM: Heir Conditioning]]>high_net_worth parenting wealth_management family_office children generational_wealth heirs inheritances wealth_transfers family_records family_history family_wealth Gilded_Age family_values failure_rateshttps://pinboard.in/https://pinboard.in/u:jerryking/b:a07d13b8983b/Thomas Staggs: Disney’s Heir, Apparently - NYTimes.com2015-04-25T20:20:50+00:00
http://www.nytimes.com/2015/04/26/business/media/thomas-staggs-disneys-heir-apparently.html?_r=0
jerrykingDisney CEOs Robert_Iger boards_&_directors_&_governance Thomas_Staggs executive_management heirshttps://pinboard.in/https://pinboard.in/u:jerryking/b:9c75ce3e8bfc/How to Leave a Mark - NYTimes.com2015-01-27T17:27:25+00:00
http://www.nytimes.com/2015/01/27/opinion/david-brooks-how-to-leave-a-mark.html?_r=0
jerryking>Impact investors<< seek out companies that are intentionally designed both to make a profit and provide a measurable and accountable social good. Impact funds are frequently willing to accept lower financial returns for the sake of doing good — say a 7 percent annual return compared with an 11 percent return. But some impact investors are seeking to deliver market-rate returns....It’s >>hard to find<< a reliable way to >>measure<< the >>social impact<< of these dual-purpose companies. Impact investors have also had trouble finding scalable deals to invest in. It costs as much to do due diligence on a $250 million deal as on a $25 million deal, so many firms would rather skip the small stuff... impact investing is now entering the mainstream. An older generation used their (rigorous) business mind in one setting and then their (often sloppy) charity mind in another. Today more people want to blend these minds. Typically a big client, or a >>young heir<<, will go to his or her investments adviser and say, “I want some socially useful investments in my portfolio.”...Impact investing is not going to replace government or be a panacea, but it’s one of a number of new tools to address social problems. If you want to **leave a mark on the world** but are unsure of how to do it, I’d say take a look. If you’re a >>high-net-worth<< individual (a rich person), ask your adviser to get you involved. If you’re young and searching, get some finance and operational skills and then find a way to get involved in a socially useful investment proposition. If you’ve got a business mind, there are huge opportunities to build the infrastructure (creating measuring systems, connecting investors with deals).
++++++++++++++++++++++++++++++++++++++++++++++++++
From SSRN
Lehner, O.M. and Brandstetter, E., 2015, Opening the Market for Impact Investments: The Need for Adapted Portfolio Tools, Entrepreneurship Research Journal (ISSN: 2157-5665), 5 (2), 87–107,
Number of pages: 21 Posted: 15 Dec 2018
Lisa Brandstetter and Othmar Manfred Lehner
Upper Austria - University of Applied Sciences Upper Austria and Hanken School of Economics - Department of Accounting
Keywords: impact investing, social entrepreneurship, social finance, sustainable finance, portfolio management]]>David_Brooks capitalism impact_investing high_net_worth new_graduates skills passions passion_investing TBL social_impact measurements hard_to_find Michael_McDerment high-impact heirs social-service_philanthropy social_entrepreneurshiphttps://pinboard.in/https://pinboard.in/u:jerryking/b:8e269fb1de3e/Well-off baby boomers likely to favor comfortable lifestyles over leaving wealth to heirs - Pittsburgh Post-Gazette2012-08-30T11:49:01+00:00
http://www.post-gazette.com/stories/sectionfront/life/well-off-baby-boomers-likely-to-favor-comfortable-lifestyles-over-leaving-wealth-to-heirs-513628/
jerrykingbaby_boomers wealth_management high_net_worth lifestyles bequests heirshttps://pinboard.in/https://pinboard.in/u:jerryking/b:e8001473079c/Heirs to Old Money Plunge Into Tech - NYTimes.com2012-04-08T18:40:30+00:00
http://dealbook.nytimes.com/2012/04/04/heirs-to-old-money-plunge-into-tech/
jerrykinghigh_net_worth angels venture_capital family-owned_businesses heirs old_moneyhttps://pinboard.in/https://pinboard.in/u:jerryking/b:560c4a167e9f/