Transferring Wealth the Right Way

Transferring Wealth the Right Way

Why Intergenerational Wealth Transfers Fail 70% of the Time


According to a study that surveyed 3,250 wealthy families, 70% of the time when wealth is transferred to an heir, it is lost due to mismanagement, poor investment choices and other mistakes.

In their book, Preparing Heirs: Five Steps to Successful Transition of Family Wealth and Values, Vic Preisser and Roy Williams cite three reasons why wealth transfers result in so many catastrophes:

  • 15% of failed wealth transfers are a result of taxes, legal issues, and poor financial planning.
  • 25% of failed wealth transfers are because of inadequately prepared heirs.
  • 60% of failed wealth transfers are because of breakdowns in communication and trust within the family.
     

The problem I see is that the accumulation, management and retention of wealth is a direct manifestation of mindset and action. When families only focus on hard assets – the money – they lose sight of their most important assets.

You have three asset types and only focusing on the money or tangible assets leaves a gaping hole. If you are not able to properly pass on all assets to your heirs, you end up with break downs in family communication, misunderstandings, legal problems and squandered wealth.

Assets of Excellence


When most people think of assets, they think of physical things—money, homes, cars, jewelry—but these objects are a poor replacement for a person’s most valuable assets.

Your assets can be broken into three main categories:

  • Character Assets: Your meaningful relationships, values, health, spirituality, heritage, purpose, talents, and plans for giving.
  • Intellectual Assets: Your business systems, alliances, ideas, skills, traditions, and wisdom.
  • Financial Assets: Your physical wealth and how to pass along money in a way that is meaningful and is not going to harm its recipients by making them dependent and unhappy.
     

It is easy to pass along your financial assets. Simply set up a trust or foundation and they are distributed as you have instructed.

But what about your character and intellectual assets?


Often these assets are lost simply because there is not a structured way to identify them and pass them along. But there is a way to properly structure and create a meaningful legacy that takes into account your intellectual and character assets and may very well be the thing that preserves your financial assets.

When you look at the stats above, you'll see that 85% of failed wealth transfers are a direct result of not properly passing on intellectual and character assets and much of the remaining 15% could be solved by transferring these two asset types as well.

What is a Meaning Legacy?


Simply put, a Meaning Legacy preserves your life, lessons you’ve learned along your journey and vision for the future as a guide to those you care about. It’s not only about leaving behind something great after you have died. It’s about living life in a way that will positively impact those you love right here, right now.

A Meaning Legacy gives your loved ones so much more than good memories; it creates a dialog, a family narrative that will serve as the foundation for their decisions, loyalty and love. When a family is able to openly discuss important issues, have fun together, learn together and support each other, everything is better—from transferring wealth to family vacations.

Laura A. Roser
Life Transitions
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Laura A. Roser is the #1 expert in meaning legacy planning. She is the Founder and CEO of Paragon Road, a company that assists individuals in passing on their non-financial as ... Click for full bio

Rosie the Robot, Amazon, and the Future of RAAI

Rosie the Robot, Amazon, and the Future of RAAI

Written by: Travis Briggs, CEO at ROBO Global US

It’s tough to find a kid out there who hasn’t dreamed about robots. Long before artificial intelligence existed in the real world, the idea of a non-human entity that could act and think like a human has been rooted in our imaginations. According to Greek legends, Cadmus turned dragon teeth into soldiers, Hephaestus fabricated tables that could “walk” on their own three legs, and Talos, perhaps the original “Tin Man,” defended Crete. Of course, in our own times, modern storytellers have added hundreds of new examples to the mix. Many of us grew up watching Rosie the Robot on The Jetsons. As we got older, the stories got more sophisticated. “Hal” in 2001: A Space Odyssey was soon followed by R2-D2 and C-3PO in the original Star Wars trilogy. RoboCop, Interstellar, and Ex Machina are just a few of the recent additions to the list.

Maybe it’s because these stories are such a part of our culture that few people realize just how far robotics has advanced today—and that artificial intelligence is anything but a futuristic fantasy. Ask anyone outside the industry how modern-day robots and artificial intelligence (AI) are used in the real world, and the answers are usually pretty generic. Surgical robots. Self-driving cars. Amazon’s Alexa. What remains a mystery to most is the immense and fast-growing role the combination of robotics automation and artificial intelligence, or RAAI (pronounced “ray”), plays in nearly every aspect of our everyday lives.

Today, shopping online is something most of us take for granted, and yet eCommerce is still in its relative infancy. Despite double-digit growth in the past four years, only 8% of total retail spending is currently done online. That number is growing every day. Business headlines in July announced that Amazon was on a hiring spree to add another 50K fulfillment employees to its already massive workforce. While that certainly reflects the shift from brick-and-mortar to web-based retail, it doesn’t even begin to tell the story of what this growth means for the technology and application firms that deliver the RAAI tools required to support the momentum of eCommerce. In 2017, only 5% of the warehouses that fuel eCommerce are even partially automated. This means that to keep up with demand, the application of RAAI will have to accelerate—and fast. In fact, RAAI is a key driver of success for top e-retailers like Amazon, Apple, and Wal-Mart as they strive to meet the explosion in online sales.

From an investor’s perspective, this fast-growing demand for robotics, automation and artificial intelligence is a promising opportunity—especially in logistics automation that includes the tools and technologies that drive efficiencies across complex retail supply chains. Considering the fact that four of the top ten supply chain automation players were acquired in the past three years, it’s clear that the industry is transforming rapidly. Amazon’s introduction of Prime delivery (which itself requires incredibly sophisticated logistics operations) was only made possible by its 2012 acquisition of Kiva Systems, the pioneer of autonomous mobile robots for warehouses and supply chains. Amazon recently upped the ante yet again with its recent acquisition of Whole Foods Market, which not only adds 450 warehouses to its immense logistics network, but is also expected to be a game-changer for the online grocery retail industry.

Clearly Amazon isn’t the only major driver of innovation in logistics automation. It’s just the largest, at least for the moment. It’s no wonder that many RAAI companies have outperformed the S&P500 in the past three years. And while some investors have worried that the RAAI movement is at risk of creating its own tech bubble, the growth of eCommerce is showing no signs of reaching a peak. In fact, if the online retail industry comes even close to achieving the growth predicted—of doubling to an amazing $4 trillion by 2020—it’s likely that logistics automation is still in the early stages of adoption. For best-of-breed players in every area of logistics automation, from equipment, software, and services to supply chain automation technology providers, the potential for growth is tremendous.

How can investors take advantage of the growth in robotics, automation, and artificial intelligence?


One simple way to track the performance of these markets is through the ROBO Global Robotics & Automation Index. The logistics subsector currently accounts for around 9% of the index and is the best performing subsector since its inception. The index includes leading players in every area of RAAI, including material handling systems, automated storage and retrieval systems, enterprise asset intelligence, and supply chain management software across a wide range of geographies and market capitalizations. Our index is research based and we apply quality filters to identify the best high growth companies that enable this infrastructure and technology that is driving the revolution in the retail and distribution world.

When I was a kid, I may have dreamed of having a Rosie the Robot of my own to help do my chores, but I certainly had no idea how her 21st century successors would revolutionize how we shop, where we shop, and even how we receive what we buy - often via delivery to our doorstep on the very same day. Of course, the use of RAAI is by no means limited to eCommerce. It’s driving transformative change in nearly every industry. But when it comes to enabling the logistics automation required to support a level of growth rarely seen in any industry, RAAI has a lot of legs to stand on—even if those “legs” are anything but human.

To learn more, download A Look Into Logistics Automation, our July 2017 whitepaper on the evolution and opportunity of logistics automation.


The ROBO Global® Robotics and Automation Index and the ROBO Global® Robotics and Automation UCITS Index (the “Indices”) are the property of ROBO who have contracted with Solactive AG to calculate and maintain the Indices. Past performance of an index is not a guarantee of future results. It is not intended that anything stated above should be construed as an offer or invitation to buy or sell any investment in any Investment Fund or other investment vehicle referred to in this website, or for potential investors to engage in any investment activity.
ROBO Global
Robotics and AI
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ROBO Global LLC is the creator of the ROBO Global® Robotics and Automation Index series, which provides comprehensive, transparent and diversified benchmarks representing the ... Click for full bio