Identify Multigenerational Needs

Identifying your needs and goals is part of every financial plan. In wealth planning, you need to identify the next generation's needs in addition to your own. Being "wealthy" typically means you won't outlive your assets, but you also need to position your assets wisely for your lifetime and the generations that come after you.

Position Assets Correctly

Each generation will share some goals with other generations, but each generation also has its own unique goals and concerns. You need to position key assets for each generation by asking and answering the right questions. Which will best support you? Which should be set aside and grown for your kids/grandkids? Do you want to plan for generations beyond that? Are there charitable bequests to consider?

Develop The Right Strategies

Based on each generation's goals and the assets you position for you and your heirs, you need to develop and identify the right strategy at each level. You may be more concerned with cashflow for your needs, while you are interested in more asset growth for other assets. You should not take a one-size-fits-everyone approach. You need to develop a different strategy to meet each generational level's goals.

Manage Investments Wisely

Investment management is crucial in the wealth planning process. The right combination of stocks and bonds, public and private investments, and liquid and illiquid assets will determine how successfully you meet all your goals across the years, decades, and beyond. You need to get this right, but you will also need to make critical adjustments as time advances. You and your family will move through different life phases over time, so your asset allocation and investment management must adapt accordingly.

Protect Your Castle

The entirety of your net worth is your family's castle, but even if you've built the perfect castle for your family, you need to build the right moat to protect it. Life is full of risks and unpleasant surprises. Being wealthy does not exempt you from these risks. In fact, the more you have, the more you stand to lose. You need to build a moat consisting of proper risk assessment, sufficient diversification, successful risk mitigation, and efficient risk protection.

Prepare the Next Generation

Even if you've done all the above, you still need to prepare the next generation to take over. This is a unique aspect of wealth planning. You need to identify who will lead the next generation in managing your wealth. 

Your kids are not all the same; they have different talents and desires. Someone who doesn't want to manage investments, operate a business, or handle real estate should not be forced to do so.

You need to develop a succession plan while you are still alive and then start training your successors while you are still present. Ultimately, you need to hand the baton to skilled and experienced leaders.