There is a saying:
“Wealth is created in the first generation, consolidated in the second, and lost in the third.”
In today’s fast-paced world, wealth can sometimes be lost even in the second generation.
Why?
The generation that created the wealth has experienced the sacrifices, discipline and hardships that went into building it. The next generation often inherits the wealth without experiencing the journey behind it.
And wealth that took decades of discipline to create can disappear surprisingly quickly when there is no similar discipline in managing it.
Recently, we had an interesting discussion on this with a senior, wealthy client.
He came up with a fascinating idea.
He proposed transferring, say, ₹5–10 lakh to his son’s account and allowing the son to independently engage with a financial adviser—whose fees would be borne by the father.
The son could discuss the investment strategy, understand the rationale behind it and manage the portfolio with a 5 – 10-year horizon.
The important part?
The money cannot be withdrawn during this period. After the stipulated period, the portfolio becomes entirely his.
The son could even maintain another portfolio of his choice and compare the outcomes over time.The objective is not simply to create wealth.
It is to teach the next generation how to manage wealth.
It encourages discipline, patience and long-term thinking—and hopefully helps the next generation avoid being swayed by finfluencers, social media noise and short-term investment strategies.
We at Naveen Rego Capital, a fee-only financial planning firm and a corporate SEBI Registered Investment Adviser, are proud to launch initiatives that help families prepare the next generation for responsible wealth management.
Introducing Family Office Advisory Services
Under our newly launched Family Office Advisory Services, the entire family can be covered under a single engagement.
So, if you have a younger son or daughter with a relatively small portfolio—even a few thousand rupees—and you want them to start learning the right way, they can have a separate advisory engagement at a very nominal incremental cost.
We are also extending this approach to spouses who may not currently engage with us regularly.
The objective is simple:
We want every member of the family to become financially aware, financially disciplined and appropriately guided.
Because true wealth management is not just about managing money.
It is about ensuring that the values, discipline and knowledge required to preserve wealth are passed on to the next generation.
And if an unforeseen event affects the wealth creator, the family should still be equipped to carry forward what was built over decades.
Wealth should not just be transferred across generations.
Financial wisdom should be transferred along with it.
If you are an existing client—or considering becoming one—and would like to bring your family onto the path of financial freedom, connect with our team at 9740457582.
If you have missed any of our previous articles, please visit https://naveenrego.com/blog-grid.php?aW5pdGlhdGl2ZXNfdHlwZV9pZA=MQ
Happy Financial Planning!
Naveen Julian Rego – CFP®
MD & Principal Officer
Naveen Rego Capital
SEBI Registered Investment Adviser
Reg No: INA000019211
BSE Membership ID: 2178
Disclaimers:
- Investment in the securities market is subject to market risks. Read all related documents before investing.
- Registration granted by SEBI, enlistment as IA with Exchange, and certification from National Institute of Securities Market (NISM) in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
- Financial products recommended by us that are under the jurisdiction of other regulators are beyond the scope of SEBI’s grievance redressal mechanism.
