Do You Have to Inherit to Be Wealthy?
People often refer to the ‘wealthy 1%’ of our society in a way that makes their wealth sound unattainable. They assume that the only way these people could have made this wealth is by inheriting it, or by striking it lucky as a hedge fund manager.
In fact, as revealed by M. Carney, R. Nason, D. Miller & LeBreton-Miller*, the last decade has seen the rise of an ‘entrepreneurial class’ within the top 1% of households, and a substantial part of them are owners of medium-sized family businesses, who actively generate new income from business ventures.
The emergence of this class makes a great deal of sense in a time when the stock market has been running at its peak and interest rates at their lowest ever level; arguably in this environment, entrepreneurship provides the biggest and most sustainable dividends.
In addition to building their own private wealth, this collective of wealth creators is vital to the economy because they stimulate cash flow by taking risks and investing their own capital into factories, machinery and man power, providing employment and prosperity to many stakeholders. It is this consistent creation of wealth that makes family businesses so valuable, sustainable and successful.
Acknowledging this newly recognized form of wealth is important for succession planning, because if you identify yourself as part of the ‘entrepreneurial 1%’, you may wish to consider how you can ensure your legacy of active and self-replenishing wealth creation can be passed on to the next generation.
The Legacy Line team works closely with international clients to properly plan and structure their acquisition of assets worldwide, manage the structures once they are acquired and consolidate regular reporting to provide a clear picture for future investments and opportunities.
Each family benefits from an individual and bespoke approach that brings all considerations under one umbrella, with access to knowledge and experience in global tax, legal, property, and citizenship to secure their family’s future and sustain their legacy.
If you would like to start a conversation about securing your family’s legacy, contact:
Karim Ghandour: firstname.lastname@example.org
Craig Brown – TEP: email@example.com
* Nason, R., Carney, M., Miller, D. & LeBreton-Miller, I. Who cares about socioemotional wealth? SEW and rentier perspectives on the 1% wealthiest business household. Concordia University Working Paper.
**Disclaimer: We have taken great care to ensure the accuracy of this communication. However, it is written in general terms and you should seek specific advice before taking any action. No responsibility can be taken for any loss arising from any action taken or refrained from on the basis of this communication.
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