Latest update April 19th, 2024 12:59 AM
Jun 25, 2018 Editorial
Many of us aspire to acquire wealth for various reasons which include security, making ourselves happy and/or passing it on to our children so that they can become wealthy and not struggle in life. It is said that the building of wealth and the passing it on to children is a very noble pursuit. As we all know that when we die, we cannot take wealth with us. We came into the world with nothing but will leave with a casket/coffin and well dressed. This is the reason why some people do not care and prefer to spend all their money enjoying life before they die, deliberately excluding their children from getting it. But this is a very risky gamble, because no one knows when he/she will die.
In this technologically advanced world, people live far longer than expected. Living to an old age these days seems normal so if people spend all their money too early, they will have to depend on their children or society to take care of them in their old age. One could outlive their money, if it is not managed wisely. While people may feel that they have more than enough for their needs and wants, it is not wise to spend as if there is no tomorrow, or giving your children their money ahead of time. To do so is misplacing your generosity.
However, what is on most people’s mind is the fear of losing their acquired wealth before they die. There are billions of poor people around the world who often lose sleep when they have no money to pay their bills or feed their children. But the opposite is also true. Many rich people constantly lose sleep as they watch over their investments because they are worried about the possibility of losing it.
In preserving wealth, experts say that it is important to consult with professionals in order to ensure that your loved ones have access to the assets in the most cost-efficient way at the time of death. There are entrepreneurs who create companies and then allocate the shares to their children rather than putting them in their name. This is usually done with the advice of attorneys and trustworthy accountants to prevent problems.
Investments are essential for long-term growth and the preservation of capital. Many investors have claimed that they have taken on enough risk in their day-to-day operations and therefore, would prefer to keep their investments safely in banks accounts even if it means earning less interest than progressive investments. In this case, preserving capital is the first rule of investing. It is said that patient investors are smart business people because they know that wealth cannot be acquired overnight, it takes time.
It is all well and good for parents to create wealth, and preserve it, but if their children know nothing about either their family business or investments or business in general, they can rest assured that the wealth they build-up will disappear in no time. This is why it is good to teach children from very early about saving money, how to manage a business or invest to build-up their wealth. Losing and gaining money early in their life could teach them some invaluable lessons.
When children are young, they can afford to take risks much more than when someone is in his/her mid-forties.
It is important for parents to know that giving children too much money at a young age is a mistake because they may not value it or want to save. But giving children no money is also a mistake, because they will never learn how to handle it, or invest it, or know how to deal with financial institutions. The process of creating and preserving wealth would require astute management and children must be taught how to manage money so that they do not become the “prodigal son” in the Bible who wasted his inheritance and had to return home.
Please share this to every Guyanese including your house cats.
Apr 19, 2024
SportsMax – West Indies Women’s captain Hayley Matthews delivered a stellar all-round performance to lead her team to a commanding 113-run victory over Pakistan Women in the first One Day...Kaieteur News – For years, the disciples of Bharrat Jagdeo have woven a narrative of economic success during his tenure... more
By Sir Ronald Sanders Waterfalls Magazine – On April 10, the Permanent Council of the Organization of American States... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]