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Where are these numbers coming from??

by sna1l 5y ago

ipaddr 5y ago
Random estimate or cherry picked stat. Questions that come up. - How do they define wealth 5/10 million or 100 million - How do they define lost it? Bill Gates is giving away most of his fortune if his daughter doesn't generate similiar wealth has she lost it or can she safely live on her 500 million and be considered rich - If you had 10 million and split between 4 kids does that make the next generation lose it because they are only worth 2.5 million or do they combine everyone's value - Do death taxes play a large part?
iso1210 5y ago
They seem to be commonly quoted, without sources. I found this "Approximately 70% of second-generation family firm successors are likely to close the family firm post succession due to succession process-related issues" in an abstract of a paper https://scholarworks.waldenu.edu/dissertations/10669/ https://scholarworks.waldenu.edu/dissertations/10669/ But nothing close to confirming the claim
FredPret 5y ago
Same place 83% of statistics come from!
rufus_foreman 5y ago
A study by Roy Williams from the Williams Group which is a wealth consultancy: "In 2002, Roy Williams of The Williams Group published the results of a 25-year survey of 3,250 instances of generational wealth transfer. He concluded that 70% of those transitions failed, where failure was defined as involuntary loss of control of the assets. That finding underscores and even quantifies the observation that Smith made centuries ago, but Williams took the analysis a step further and explored the reasons for those failures" -- https://www.bbh.com/resource/blob/12348/efb7f72e1db41ada8ef1d7d1a28f78f3/crossed-wires--why-most-generational-wealth-transfers-fail-pdf-data.pdf https://www.bbh.com/resource/blob/12348/efb7f72e1db41ada8ef1... He wrote a book with Vic Preisser titled "Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values" that has the results of the study. Looks like you can get a copy for $3.51 on Amazon.

Where are these numbers coming from??

by sna1l 5y ago

Where are these numbers coming from??

Random estimate or cherry picked stat. Questions that come up. - How do they define wealth 5/10 million or 100 million - How do they define lost it? Bill Gates is giving away most of his fortune if his daughter doesn't generate similiar wealth has she lost it or can she safely live on her 500 million and be considered rich - If you had 10 million and split between 4 kids does that make the next generation lose it because they are only worth 2.5 million or do they combine everyone's value - Do death taxes play a large part?

iso1210 5y ago

They seem to be commonly quoted, without sources. I found this "Approximately 70% of second-generation family firm successors are likely to close the family firm post succession due to succession process-related issues" in an abstract of a paper https://scholarworks.waldenu.edu/dissertations/10669/ https://scholarworks.waldenu.edu/dissertations/10669/ But nothing close to confirming the claim

FredPret 5y ago

Same place 83% of statistics come from!

rufus_foreman 5y ago

A study by Roy Williams from the Williams Group which is a wealth consultancy: "In 2002, Roy Williams of The Williams Group published the results of a 25-year survey of 3,250 instances of generational wealth transfer. He concluded that 70% of those transitions failed, where failure was defined as involuntary loss of control of the assets. That finding underscores and even quantifies the observation that Smith made centuries ago, but Williams took the analysis a step further and explored the reasons for those failures" -- https://www.bbh.com/resource/blob/12348/efb7f72e1db41ada8ef1d7d1a28f78f3/crossed-wires--why-most-generational-wealth-transfers-fail-pdf-data.pdf https://www.bbh.com/resource/blob/12348/efb7f72e1db41ada8ef1... He wrote a book with Vic Preisser titled "Preparing Heirs: Five Steps to a Successful Transition of Family Wealth and Values" that has the results of the study. Looks like you can get a copy for $3.51 on Amazon.