Planning
Family Wealth Over 4 Generations
Created by
- Jose_Henrique
Created at
Description
This theoretical study based on constant parameters aims to predict future results in order to determine which variables can be adjusted to maintain the wealth succession over generations without incurring losses or excessive dilutions over time.
It depends especially on the expected return. In this model, adjusted to 10% annualized gross growth, it allows withdrawing 50% of the income as dividends and having 2 new heirs every 30 years.
However, these variables can certainly be optimized.
Technical Variables
Initial Worth: $1,000,000
Annual Return: 10%
Dividend Payout: 50%
Heirs/Generation: 2
Generation Period: 30 Years
