""I fought against [the word wealth] because I didn't think its financial definition was where wealth actually was in a family. Then one day I discovered that the word wealth is a derivation of well-being. I just didn't understand the breadth of the term. And now I'm living with that wonder that wealth means well-being.""
""In a world where most family fortunes evaporate by the third generation - a phenomenon sometimes referred to as \"shirtsleeves to shirtsleeves\" - Hughes believes the problem isn't poor investing. It's bad family design. Hughes believes that families who focus only on money eventually lose it - not because of bad investments, but because they neglect the other forms of wealth that keep people connected and motivated. He breaks down true wealth into five kinds of capital, all of which he said must grow together if a family hopes to last for generations.""
Most family fortunes fade by the third generation because families prioritize financial capital while neglecting nonfinancial capitals that sustain relationships and purpose. True family wealth equates to well-being and requires simultaneous development of five capitals: legacy (shared purpose), human (skills, health, character), intellectual (learning and values), social (relationships and governance), and financial (assets and stewardship). Families that invest in people, purpose, and learning foster engagement, motivation, and continuity. Deliberate family design, governance, and intergenerational education preserve flourishing members and help assets endure, preventing entitlement, fragmentation, and loss.
Read at Business Insider
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