A study by The Williams Group, which tracked 3 200 families over two decades, has found that 70% of wealthy families lose their fortunes by the second generation, and 90% by the third. Interestingly, this trend transcends geography and culture, as reflected in the Chinese proverb: “Wealth does not last beyond three generations”, which echoes the American saying “Shirtsleeves to shirtsleeves in three generations”.
This is particularly relevant considering that the biggest global transfer of wealth is currently underway. In the coming years, baby boomers are set to pass down more than $68 trillion – that’s more than double the size of the whole US economy. This, however, is not only an American – or developed market – phenomenon, but a global one, affecting wealthy families around the world, including…
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Star South Africa (Digital) - 1 Issue, 2025-02-28