GTB 737 banner Yudala banner

Wasted wealth: How to keep your family fortune from slipping away

By Mandy Collins on 29/06/2017

Share on facebook Yahoo mail icon Gmail icon

Views: 665


Family fortunes take a long time to build but are easily lost if subsequent generations don’t have the financial savvy required to maintain them.

Imagine taking $100 and turning it into more than $100-million. And then imagine growing it to $200-million – that’s $300-billion in today’s money. You could never spend that much, right?

Wrong. That’s exactly what happened to the Vanderbilt family fortune. The descendants of patriarch Cornelius “Commodore” Vanderbilt managed to spend the whole lot. Lavish homes and opulent parties soon lapped up their wealth, and some members of the family died penniless.

The Commodore began his business in 1810 when he borrowed $100 from his mother and started piloting a passenger boat on Staten Island. He expanded into steamboats and went on to build the New York Central railroad empire, which stretched across the US and created a rail service monopoly in and out of New York City.

But subsequent generations squandered the family fortune by building grand mansions and throwing extravagant parties. Theirs was a life of excess as they used their money to rise to prominence in New York’s social scene in the late 20th century.

Members of the Vanderbilt family built many of America’s most extravagant private homes, such as “The Biltmore” in Asheville, North Carolina, and “The Breakers” in Newport, Rhode Island. They also owned 10 mansions on Fifth Avenue in Manhattan, dominating prime real estate in the world’s wealthiest city.

But while the first of the Vanderbilts’ Fifth Avenue mansions in Manhattan was completed in 1883, by 1947 all 10 had been demolished, once their contents had been auctioned off. Within just 30 years of the death of the Commodore, not one member of the Vanderbilt family was among the richest in the US – simply because they went from being producers of great wealth to being great consumers of it.

Jamey Lipschitz, head of wealth management at Sanlam Private Wealth, says making sure heirs do not spend the hard-earned family fortune should be a priority.

“It starts with the parents,” he says. “It’s vital that parents discuss money and inheritance with their children. It shouldn’t be a taboo topic. In families where money is discussed from a young age, children grow up better appreciating its value.”

Lipschitz says most parents want to give their children a good life, but teaching solid values around money is just as important. “Children need to know that maintaining the family fortune takes a combination of hard work, discipline and wise investments. If you can instil those values, then one day they will be better equipped to preserve the family fortune.”

He adds that the greater the wealth, the greater the responsibility of the parents. “Great wealth brings great influence and power. When that wealth transitions to the next generation, it buys great freedom and choice, and the children need to be properly placed to receive it.”

Or, as Cornelius “Commodore” Vanderbilt is purported to have said to his son: “Any fool can make a fortune; it takes a man of brains to hold onto it.”

•Credit: Sanlam Private Wealth.

 

Source News Express

Posted 29/06/2017 9:05:32 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

 

You may also like...
Why Babangida removed me from power in 1985:...

Governors' Forum Chairman threatens showdown with EFCC

Kaduna Govt. boosts learning in public schools with...

Meningitis: UNICEF places Ekiti under surveillance

NBTE boss predicts more job losses

Ogun bridge not stalling Lagos-Ibadan rail project: Commissioner...

Rivers APC hits TAN and Jonathan, says Port...

Royal Foundation International holds National Leadership Summit June...

Flood: NIHSA confirms monitoring water from Cameroon, as...

BREAKING NEWS: Many feared dead as explosions rock...

KILL & GO: Anger, violence as grand jury...

Shine your eyes, Nigerians: OBASANJO, A HARBINGER OF...

 

Latest News Ekwueme: SGF heads National Burial Committee Anambra PDP kick-starts reconciliation moves •Embraces zoning, fixes dates for state congress Why we won’t send husband killer to prison: Police Prof. Adebayo Williams: Celebrating my Mentor, Beacon of Hope, Inspiration and Voice of Courage, By Friday Olokor 2019: APGA chieftain tasks politicians not to destabilise Imo State over zoning Wall Street Journal’s Africa Bureau Chief to give Keynote Speech at AUN’s 12th Founder’s Day Biafra: FG taking due advantage of our disunity — BNYL Activist petitions Imo Police boss over illegal detention Mnangagwa takes over power in Zimbabwe BREAKING NEWS: Atiku dumps APC Soccer star bags 9 years jail term for alleged gang-rape 40 human traffickers nabbed

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (295,892 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (279,554 views) Shameless Genevieve Nnaji exposes breasts in public (225,971 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (190,123 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (181,561 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (166,645 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (144,540 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (130,827 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (127,659 views) Lagos plane crash: Journalist releases victims’ names (116,749 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (114,009 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (108,519 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (31) Business (2,781) Business Verdict (26) Columnists (771) Complaints & Requests (93) Enterprise & Opportunities (187) Entertainment (408) Features (511) Global Business Monitor (192) International (1,655) Interviews (138) Live Commentary (28) Love Matters (85) News (30,487) Opinion (838) Pidgin (9) Politics (4,128) Religion (649) Sports (1,357) Stock Watch (24) AMA & Al Jazeera Global Update

 

UBA mobile app

CBN Words on marble

 

 

Argentina vs Nigeria

 

APO Group Partner

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!