Let's Talk Money

Brian A. Magnan CFP®, AIF®
Director, Magnan Family Wealth Management

Thanksgiving is my favorite holiday, and this year it coincides with my birthday, though that’s just a happy coincidence. I love Thanksgiving because it is an opportunity to prepare a beautiful meal, participate in a morning football game or 5k run, have guilt-free eating, have leftovers, shop for discounts, and most importantly, have precious time with friends and family.  I propose that we make the most of this precious time by talking about money with our loved ones.

Michael Liersch, PhD in Behavioral Science and Head of Advice and Planning for Wells Fargo Wealth & Investment Management, hosts one of my favorite podcasts, “About Money.” In Season 1, he delves into the concept of MONEY SILENCE.

Why is MONEY SILENCE a concern?  It is estimated that 70% of families lose their wealth by the second generation and 90% by the third.  We believe the key issue is a lack of communication about money, values, and goals.  Thanksgiving can be a perfect opportunity to chat about these taboo topics.  Conversations don’t have to start with, “Please pass the butter, and oh, by the way, your mother and I have decided to be cremated.”  Michael has a much softer approach.

Michael’s Tips for Family Meetings

  1. Gratitude: Start by having everyone share something they are grateful for, particularly about being part of the family. For example, “I’m grateful for being in this family because we all help and support each other.”
  2. Values: Encourage each family member to share one financial value they see in the family. An example might be, “While we focus our money on essentials spending, discretionary spending is also deliberately and intentionally aligned with our values & goals.”
  3. Agenda Item: Discuss a financial topic of interest. This could be about a vacation, a big purchase, allowances, spending behaviors, saving, investing, or community giving. Guide your conversation toward the reasons why this action/item is important to you.
  4. Action Steps: Decide on the next steps based on your discussion. For instance, if the topic was community giving, determine what actions you will take together as a family. Review these actions in your next meeting to ensure follow-through and continue the conversation.
An additional service we offer is Family Dynamics Consulting.  A coordinated meeting with your estate planner, CPA, trustees, and children is essential to facilitate an enduring legacy.  We have tough conversations regularly with the families of our clientele.  Since MONEY SILENCE destroys wealth over time, we are on a mission to not allow that to happen.  We can host these meetings via ZOOM, but our preference is in person.  Our conference room or another safe location is a perfect place to gather for these intimate discussions.

May you have a joyful day this Thanksgiving.  May your holiday be full of blessings, love and an abundance of happiness.



https://finance.yahoo.com/news/generational-wealth-explained-experts-build-151600548.html
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