Accountants, lawyers, financial advisors, we can all be guilty of the same fault when advising our clients about wealth management and inheritance tax. We can concentrate on the mechanics of helping our client, for example, saving tax, setting up a trust, or making the right investment choices, but ignore the gift of knowledge.
Only though knowledge can wealth be passed through the generations, this both true of our cultural wealth and our financial wealth. We professionals can happily work out how you can save inheritance tax and how gift your money but unless your heirs have the right knowledge all this planning may count for nothing.
Knowledge about wealth can help us enjoy its benefits without it slipping through our hands like sand. It can help us learn how to manage and invest wealth both so we are not taken in by the first well presented charlatan, and so that we can earn income from our money but also have the capital available throughout our lives. After all wealth can be also intimidating and scary to people who do not have sufficient knowledge. So what is the knowledge? It’s about:
- understanding what investments are available and their associated risks.
- planning what is really important to you.
- learning how the wealth was accumulated.
- the effect of controlling your spending when you have access to a chunks of wealth.
- making money make your life easier.
I’m a great advocate of getting a decent financial education, because I believe that knowledge about money, when acted upon, especially from an early age, can have a huge impact on your life…where you live, where your kids go to school, how you retire….I genuinely believe it is an essential ingredient of being in control of your life. Therefore, I implore you, if you have financial knowledge pass it onto your children, it’s just so important.