In an era of rapid change and economic uncertainty, preserving and growing family wealth across generations requires more than luck—it demands a clear framework, disciplined governance, and a shared vision. The Prosperity Playbook introduces proven strategies to help families forge a lasting legacy.
Drawing on the SGA Formula—Stability, Growth, Agility—and a total family wealth perspective, this guide offers actionable insights for families to unite around common goals, manage risks, and seize opportunities.
The SGA Formula from CFEG provides a three-pronged approach to multigenerational wealth: Stability as the foundation, Growth as the engine, and Agility as the adaptor. Together, these pillars create a resilient portfolio that can weather crises and capture new possibilities.
Stability (Foundation): At its core, stability relies on financial strength, liquidity, and conservative balance sheets. Families must cultivate low debt levels, ensure robust governance, and foster long-term commitment and unity among owners. Regular owners’ council meetings, clear decision-making processes, and alignment of family values with investment choices build unshakeable foundations.
Growth (Engine): Once stability is secured, families can focus on sustainable, profitable expansion. This means balancing asset growth with ownership control and prudent liquidity management. Strategies include diversifying around core competencies through partnerships, M&A, or minority stakes, and empowering the next generation to innovate and reinvest for compounding returns rather than relying on short-term dividends.
Agility (Adaptor): In today’s turbulent times, the ability to pivot quickly is invaluable. Agility involves streamlined processes, dynamic risk assessments, and a culture that embraces change. By integrating agile methodologies into strategic planning, family offices can respond to market disruptions—like a global pandemic—without compromising long-term goals.
Modern family wealth transcends individual businesses or investments. Adopting a total wealth portfolio mindset ensures that every asset contributes to collective resilience and growth. Five key categories form the backbone of this approach:
Anchoring these categories are intangible assets—family values, mission, culture, and reputation—which guide decisions and bind generations together.
Effective family offices evolve in phases. Starting with core services—custody, reporting, accounting—they then incorporate specialized functions like tax planning, risk management, and philanthropy. Strong governance, transparent communication, and clearly defined roles are critical at every stage.
By adhering to these best practices, families avoid common pitfalls such as centralized decision-making, poor communication, or delayed selection of custodians, all of which can undermine long-term success.
Building wealth for future generations is as much about mindset as it is about money. Families must cultivate a culture of stewardship, education, and innovation to keep the legacy alive and thriving.
In essence, families that view their wealth through a high-altitude lens—balancing stability, growth, and agility—equip themselves to navigate whatever the future holds.
The Prosperity Playbook offers a roadmap for families seeking enduring wealth and unity. By implementing the SGA Formula, adopting a comprehensive portfolio view, and embracing robust governance and succession planning, you can steward the legacy with renewed purpose.
True prosperity extends beyond financial metrics: it’s the shared values, open dialogue, and collective vision that bind generations. Start today, engage every stakeholder, and watch your family’s wealth flourish for centuries to come.
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