20200429 - Ep 16 - Communication & Resilience is Key to A Successful Wealth Distribution - a podcast by CBT

29 April 2020

Communication & Resilience is Key to A Successful Wealth Distribution

In this Episode, we talk why:

• Having a good and open, and honest communication is Key to A Successful Wealth Distribution
  
  

Here’s a scenario. A successful and wealthy father wanted to give his son a gift that is worth several million dollars. The son, who is a very ambitious and hardworking son, had recently started his own social enterprise start up. He wants to make the world a better place. And, this large sum of money could possibly have made a huge difference in the son’s business, potentially change the world and definitely help in his son’s standards of living.

In this case, what should the father do? Should the father A) give him the money as a gift, or B) Have a conversation of his and his son’s wishes, OR C) let the son figure it out himself so that he can go through the required struggles which the dad himself had gone through so that when the rewards that comes with it would be much sweeter?

Parents with wealth are often faced with difficult choices as they not only not want to spoil their child, but many also do not want to see them suffering as well.

The problem in providing for children arise when givers and recipients do not communicate, the gift becomes a mere transfer of wealth. This transfer of wealth has no meaning, has no spirit, has no education, and certainly does not prepare the recipients to be receiving well. In such situations, a lack of communication for the transfer of wealth not only does not promote growth and enhancements to the recipient’s life, but it also affects the recipient’s psychic environment and loses its impact.

While the giver needs to communicate this gift well, on the other hand, it requires the recipient to be prepared and also to be resilient as an individual. Resilience is the ability to stand back up again when he falls. Resilience is to finish through the difficult path and be creative and find ways to overcome a situation rather than just giving up. Resilience allows the recipient to go into different and new experiences but only if the recipient endures and overcomes the struggles of whatever life throws at him. That is why resilience is a key variable in determining whether recipients will grow or suffer as a result of the rich dad’s wealth being passed down.

In conclusion, communication needs to happen if the giving is to be received well so that it promotes growth and enhancement for the recipient.

And Resilience in the recipient needs to be there to ensure that the recipient can take on the gift and make good use of it, so that the recipient would not feel powerless or have the wrong mindset when handling the gift.

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