Truist-Perspectives-AUGUST_2021
Truist Perspectives magazine makes the complex clear by offering tools and tips for investing, financial planning, and more.
Truist Perspectives magazine makes the complex clear by offering tools and tips for investing, financial planning, and more.
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Insights: Family<br />
Here are three reasons why creating a<br />
mission statement can be beneficial to you<br />
and your family.<br />
1 Preserve your family legacy.<br />
A family mission statement can be an essential navigation<br />
tool in wealth planning, particularly in light of<br />
wealth-transfer data: According to a 2003 study by Roy<br />
Williams and Vic Preisser, the odds of sustaining wealth<br />
across three generations are as low as 30%. Lack of<br />
communication or mission, unprepared heirs, and lack of<br />
strategic planning within the family can be contributing<br />
factors. Financial literacy and communication are key in<br />
transferring generational wealth to your kids. By creating<br />
a welcoming environment for open and honest communication,<br />
your family can stay better connected and work<br />
toward successful wealth preservation.<br />
2 Get everyone on the same page.<br />
For a mission statement to be successful, it must resonate<br />
for everyone within the family. Plus, allowing your<br />
children to have a seat at the table for the conversation<br />
is a great way to strengthen relationships and provide a<br />
learning opportunity for everyone involved.<br />
“This open and honest communication between family<br />
members leads to greater trust, which helps prevent<br />
conflict,” say Grieve and Medici.<br />
Everyone within the family must feel that their input is<br />
accepted and appreciated. But it’s important to not rush<br />
the process. In fact, the process can be just as important<br />
as the end result. It can be exceptionally gratifying,<br />
revealing, and productive to hear everyone’s point of<br />
view and to think through what values will drive your<br />
family’s decisions and choices.<br />
3<br />
Guide you through conflict and tough decisions.<br />
“In the end, families will be rewarded with far more than<br />
a piece of paper,” say Grieve and Medici.<br />
By creating a mission statement, you’re outlining your<br />
belief systems as a family unit in a way that’s clearly understandable<br />
to everyone. Should a tough conversation,<br />
decision, or conflict arise, you and your family can look<br />
back to your mission statement and remain true to your<br />
defined values to help guide your path forward. Consider<br />
your mission statement a covenant that preserves your<br />
family values and a compass that keeps your family on<br />
track to hit their goals.<br />
To learn more about why family mission statements are<br />
beneficial in legacy planning, read Grieve and Medici’s<br />
white paper: “Mission statements for families of wealth:<br />
Identify the values and reap the reward.”<br />
August <strong>2021</strong> | 9