Estate Living Digital Publication Issue 6 June 2015 | Page 37

INVESTMENT SAVVY
Ratcliffe advises that a
stumbling block for many
wealthy families is the
transfer of wealth to
younger generations, who
may be completely illequipped and unprepared
to manage this wealth.
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South Africa is one of the continents
richest nations and a significant
proportion of this wealth is as a result of
an increase in wealthy families – those
that have created generational wealth.
This robust inter-generational wealth is
on the increase as South Africans strive
to provide financial well-being and
security to their children, grandchildren
and the rest of the extended family.

do not know how to prepare the next
generation to manage the unique
challenges and opportunities that they
will face. In addition to this, there are
many other factors that negatively
affect generational wealth such as
family feuding, differing management
styles and opinions and divorce. A major
factor is the lack of time for effective
management” explains Ratcliffe.

However, according to Andrew Ratcliffe
of Private Client Holdings (PCH), a Family
Office that specialises in generational
wealth management, for select affluent
families, there stands the risk that their
wealth may be substantially diminished
due to mismanagement and a lack of
knowledge and preparation of younger
generations.

Ratcliffe advises that a stumbling block
for many wealthy families is the transfer
of wealth to younger generations, who
may be completely ill-equipped and
unprepared to manage this wealth.

“The reality is that often, wealth transfer
plans break down because families

“Many young people are just about
able to manage their own finances.
For many they are experiencing new
commitments like paying bills for the
very first time, when they suddenly
become responsible for managing large

INVESTMENT SAVVY

WEALTHY
FAMILIES
RISK
LOSING
IT ALL