1. Define Purpose – Articulating and codifying goals, feelings and purpose for your wealth is a necessary first step to set yourself on the right decision path. Ask yourself, “What or who do I care deeply about?” The answer to that question should be a guiding principle for how your structure, grow and distribute your resources.
2. Build Process and Focus on Outcomes – The most thought-out plans and ideas will almost certainly fall short of expectations if you don’t create and maintain processes for carrying out your vision, both now and in the future. Ensure that you take steps to periodically review your goals and the action steps required to achieve them.
3. Involve Family – Foster a culture of lifelong learning in your family. The old adage that family generations often move from short sleeves to long sleeves and then back to short sleeves represents the idea that wealth is hard to create and even harder to maintain as time passes. If adequate time for education isn’t provided, family members who didn’t directly participate in the wealth creation phase won’t know how to handle what may be entrusted to them in the future.
4. Find an Advocate – Choose a close personal friend or family wealth professional to brainstorm ideas, make tough decisions and gain an outside perspective. Making these sorts of decisions can be stressful and emotionally draining. It is important to have a support system in place.
5. Know Your Limitations – Determining the desired trajectory for your wealth can be exciting, hard and painstaking. It is also a very complex task from a tax and estate planning perspective. Take time to understand what you can do on your own and when you should seek the assistance of professionals.