"Nothing sedates rationality like large doses of effortless money."
<br/><span class="body-2 opacity-80" style="padding-top:0.75rem">~ Warren Buffett</span>
In the quote above, Warren Buffett is talking about investments and investment strategies. However, his sage perspective can easily apply to families looking for advise on how to raise responsible children in the presence of wealth.
[Effortless] Money turns up the volume on those character traits already evident in someone. For the narcissistic, money makes them more self-centered; they will believe the world is there to serve them with white gloves and on bended knees. For the enterprising, it enables them to strive for the next great idea. For the compassionate, it is the tool they need to change humanity. And for the immature and unmotivated, it is the drug that will sedate them into perpetual apathy.
Knowing when and how to transfer assets to the next generation is not about trusts and transfer strategies, it’s about understanding your children and what makes them tick. You must learn their operating system. You must appreciate what motivates them and why they do what they do. You must dig deep and build relationships that are predicated on trust, an acceptance of who they are, and an openness to understanding their unique journey.
They are not you, and in my opinion, your mandate is to understand them and recognize their individuality. By doing this, and only this, can you determine whether effortless money will be a catalyst or a sedative.
