Intellectual Capital: Wisdom & Lessons Learned Are What Drives Wealth
Sarah Fontenot | August 19 2020
If your money was taken from you today, what else would you give to the next generation?
When people hear the word “inheritance,” they typically think of their net worth. It is easy to imagine passing down tangible resources like a business, land, or money. In fact, many professions exist to help cultivate, steward, and pass down these types of wealth.
Unfortunately, passing wealth without wisdom can harm more than help. We believe preparing your heirs for your wealth is as important as preparing you wealth for your heirs. One of our core principles at Archetype is to “Invest in a Full Inheritance.” Whether you plan to pass one dollar or ten million, you have a hand in shaping the intellect, character, relationships, and spirit of the next generation. How you choose to cultivate these four “capitals” has a significant impact on how the next generation views and stewards the financial capital you intend to give.
A wise mother once told me: “Anything someone does spontaneously without reminder or prompting – that is part of their genius.”
Developing the “Intellectual Capital” of the next generation may include investing in a traditional education. Many families I serve list funding private school and college among their top financial priorities. Of course, lifelong learning and a sense of curiosity can lead to intellectual development beyond books and classroom walls. Many financially successful leaders never obtained a diploma, and their money flowed into the start-up costs of their business rather than tuition fees.
When you consider the “Intellectual Capital” you hope to leave behind, what role does traditional education play? I encourage you to consider who most influenced the way you think and reflect on the lessons you learned from them. What “Intellectual Capital” did they pass down to you? What “Intellectual Capital” do have or value that you hope to give to the next generation? Knowing the answers to those two questions can provide clarity as you prioritize your finances and craft a legacy in line with your purpose and mission.
Ready to dig deeper? Get started today, by better understanding your risk tolerance level and how that fits with the investments you currently hold.
Disclaimer: Our intent in providing this material is purely for informational purposes, as of the date hereof, and may be subject to change without notice. This article does not intend to constitute accounting, legal, tax, or other professional advice. Visitors and readers should not act upon the content or information found here without first seeking appropriate advice from a trusted accountant, financial planner, lawyer or other professional.