TRANSFORMATIONAL GROWTH

“Never look down to test the ground

before taking your next step; only he

who keeps is eye fixed on the far

horizon will find the right road”

- Dag Hammarskjold

“Today is when everything that’s

going to happen from now on

begins.”

- Harvey Firestone Jr.

In The Next

Episode

There are some key

aspects of this topic that

have not been explored.

Therefore Episode 02

will look at;

Inter—generational

governance system

Roles & responsibil-

ities of each family

member as owner

of the family enter-

prise.

Roles & Responsi-

bilities of Uncles &

Aunties ‘Transformation literally means going beyond your form.’ Wayne Dyer’

A Master Plan for Generational Wealth Creation

A few years ago, I started wrestling with this phenomenon and

naturally I started looking at my environment (Africa) and to

say the least, the results where shocking. It became clear to me that

without the right thinking and more importantly action, Africa will

never attain ‘its potential’.

Following my investigation, I decided to approach an American who is

in line to inherit billions of generational wealth handed down to his

father by his grand parents. This gentleman who was a close ac-

quaintance at the time took his time to explain some of the tenets of

this principle.

My questions multiplied by a considerable number because a majority

of the things we spoke about, I could tell that even people like my-

self who would consider ourselves exposed to the world would be

found wanting in this generational mindset. I will share some of the

key drivers of this principle which is entrenched in the psyche of peo-

ple in more advanced societies. This write—up cannot even begin to

scratch the surface of this subject but I hope it will spark a con-

sciousness amongst African people and others around the world who

need this awakening.

Just as a footnote, a majority of African owned enterprise or compa-

nies are family owned and first generation. Studies have shown that

70% of family wealth is lost by the end of the second generation and

90% by the end of the third. It is my hope that we can start from

now to stem this tide to avoid this vicious circle to continue to our

children and not be part of these statistics. We need to understand,

and work to overcome, the disconnect that occurs between genera-

tions regarding the transfer of wealth.

EPISODE 01 February 2016

By Mbi Mbapeh - My Reflections on Africa’s Transformational Growth

Reflection Points

- Inheritance

T here is a trait which runs through many African families. Inadvert-

ently an African will inherit debt and other societal problems. In

the event that they inherit something different, it will be riches and not

wealth. People always make the mistake to think that these two are the

same but they are significantly different. The main difference between

being rich and being wealthy is knowledge. Wealthy people know how

to make money while rich people only have money. Rich people are

motivated by money but wealthy people are motivated by their dreams,

purpose and passion. Most rich people make a lot of money with their

paychecks but the moment they stop working, they also stop making

money.

Being wealthy is defined as that status of an individual’s existing finan-

cial resources that supports his or her way of living for a longer dura-

tion, even if he or she does not physically work to generate a recurring

income. (www.millionaireacts.com.)

In thinking about generational wealth creation, every generation should

think about the fact that, what they do today will impact on the fourth

generation after them. World renowned Personal Growth writer Perry

Stone say families today should see generational wealth creation as the

act of planting a tree. The first generation plants the seed, the second

waters the tree, the third grows the tree while the fourth protects the

tree. Bearing in mind that each generation is thinking of four genera-

tions after them.

Leading From Where you are ! MANSA MUSA

An obscure king who ruled West

Africa in the 14th century has

been named the richest person in

history in a new inflation-adjusted

list of the world's 25 wealthi-

est people of all time.

Spanning 1,000 years and with a

combined fortune of $4.317tril-

lion, only three of the list's 25 are

alive today; none of them are

women and 14 of them are Ameri-

can. The legacies of 24 individuals

on the list lives on and is evident

for all to see.

As an African my question is what

is the legacy of Mansa Musa from

Mali, what is his legacy?

Mansa Musa I: This video game representation of the king shows what he may have looked like .

Personal transformation can and does have global effects. As we go, so goes the world, for the world is us. The revolution that will save the world is ultimately a personal one. ‘Marianne Williamson’

In this episode, I would recom-

mend the following book by Perry

Stone;

Breaking The Jewish Code

It carries 12 Secrets that will

transform your Life, Family,

Health and Finances

Please share your thoughts with

us after going through our recom-

mended readings or share your

readings with us.

Generational Wealth Drivers!

The dominant thought is that

if I live lots of money to the

next generation they will be

fine. That is true but does not

always work out as you

would think. What is actually

more important is what you

deposit in the next genera-

tion not in their bank ac-

count.

The following information

should be communicated to

your family to ensure they

are armed for the beyond you

experience;

Your Net-worth state-

ment. You do not neces-

sarily have to be a mil-

lionaire to have a net-

worth statement.

Have a will and testimo-

nial drafted,

Create a family Trust

Have an irrevocable life

insurance trust

Overall goals and inten-

tions for inheritance

Estate Planning

Your road map needs to be

personalized through integra-

tion of your family values,

family history, and ultimate

goals for future generations

‘Generational Wealth Creation

is not the accumulation of

cash and material resources

but planning with the next

generations in mind’—Mbi

Mbapeh

Life is a moving, breathing thing. We have to be willing to constantly evolve - ‘Nia Peeples’

Your Masterplan

T here are a multitude of angles around which this subject can be ap-

proached. For the purpose of this write—up, I will focus on the three areas

which should form the basis of your masterplan. Credits of some of this material

goes to Ilze Alberts and James E. Hughes Jr. for great insights on these matters.

To avoid what seems to be known around the world as ‘Shirt Sleeve to Shirt

Sleeve’, (Family Wealth is transferred and depleted by the third generation) an

intentional ‘Bond of Affinity’ has to be created in the family to drive the common

good agenda. These are; Legacy, Heritage and Wealth. At all levels, every step

taken to drive this agenda has to be ‘Intentional’ from one generation to the

next. Enhancing and transferring to the next generation. Note that you have to;

- Impart Before You Depart - (Perry Stone)

T he main reason why we raise our children and grand children in any gener-

ation is to impart character so that they can be able to carry the mantle

with truth and righteousness and hand it over to the next generation in a much

bigger and better state than they received it. In ancient biblical times, when

Abraham was very advanced in age, he imparted blessings to his son Isaac,

Isaac did the same with Jacob and then Esau and Jacob were no different. In

some other cases, the father or mentor would walk the journey with the mentee

and as they depart, there is a transfer. This was true for Moses and Joshua

same scenario for Elijah and Elisha. Make sure that whatever you do, ‘Impart

before you Depart’.

This impartation could be tactile or even the softer things like the motivation

and positive acclamations that you induce to the next generation by your words

and actions. Remember at all instances, it has to be intentional.

The Family Bank Account!

To build a positive balance in this

bank account, every member of

the structure with a bond of affin-

ity, would freely without duress,

adhere to the principles set out

and do everything in their power

that the common good is

achieved for the ‘greater good’

I) PHILOSOPHY

(A) The Revenue side of the Family Balance Sheet

(B) Enhance each family mem-ber’s goals

(C) High risk/Low interest lender

(D) Expectation that loans will be repaid

(E) Adopt the Rothschild model

II) ORGANIZATION

(A) Not formally chartered so no possible regulation

(B) Board of Directors

1) Only family members

2) Over 21-Advisory vot ing

3) Over 16-Attend meet ing

4) Mater familias as Chair man/Casting Vote

III) OFFICERS

(A) Chairman

(B) Secretary

(C) Board member other than Chairman and Secretary des-ignated facilitator at each meeting

IV) MEETINGS

(A) General- all family meetings will include “Family Bank” issues as an agenda item

(B) Specially called by Chairman whenever a loan application made if not coincident with a general meeting

(C) Meeting may be held tele-phonically, by e-mail or in person

V) ADVISORY BOARD

(A) Non family members

1) Mentors

2) Special loan applications requiring special issue expertise

VI) FUNDING

Optional with mater familias, but initially on a project-by-project basis

James E. Hughes Jr. Esq.

Your Masterplan Continued!

- Legacy -

F rom a legacy perspective, an extremely powerful legacy wealth has to be

created overtime. When you depart leave such a name in your community

that your children will be proud to carry that name. A financial and spiritual leg-

acy are equally important. On the softer side leave lots of pictures. Control your

legacy beyond the grave

- Heritage-

A heritage is something that is not material such as traditions handed down

from one generation to the next. These are intangible but are very power-

ful. When we examine the family balance sheet below it will be captured for

better understanding.

- Wealth -

W ealth is a measure of the value of all of the assets of worth owned by a

person, community, company or country. Wealth is found by taking the

total market value of all the physical and intangible assets of the entity and

then subtracting all debts. Investopedia

The sum total of these tangible and intangible assets, make up the wealth of a

generation to be handed down to the next generation. Whatever you consider

as the first generation from where you are today as an entity, be it a family,

company or community, note that 1st generations will use and treat ideas in the

same way as accounting mechanisms. The actual Family balance sheet looks

beyond these structures.

Life is a moving, breathing thing. We have to be willing to constantly evolve - ‘Nia Peeples’ Read more at http://www.brainyquote.com/quotes/keywords/transformation.html#6dwhT0xigqmSxzaR.99

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Your Family Balance Sheet

An adaptation from James E. Hughes, Jr

I t should be noted that the common denominator here is the family or indi-

viduals / entity tied by Bonds of Affinity and interested in the greater good

“The Next Generation’. The greatest liability here is us!

Assets Liabilities

The family represented by the

individual members of the fam-

ily of affinity

The family's human capital

The family's intellectual capital

The family's financial capital

The family's social capital

The family’s spiritual capital

Long-term Family Risks The Prov-erb, "Shirt sleeves to shirt sleeves in three generations"

Failure of family governance

Failure to understand that success requires a 100-year plan

Failure to comprehend and manage all forms of family capital ….human …intellectual …financial

Intermediate Internal Family Risks

Death

Divorce

Malthus’ Law-the geometric increase of family members in each genera-tion

Creditors

Poor beneficiary/trustee relations

Investment programs of fewer than 50 years

Intermediate External Family Risks

Inflation

Inadequate trustee management

Estate and other forms of transfer and wealth taxes

Disasters

Changes of political system

Lack of personal security

Short-term Family Risks

Income taxes

Market fluctuation

No mission statement

Lack of financial education

Family Shareholder Equity

Are individual family members suc-cessfully pursuing happiness?

Are the family’s human and intellec-tual capital increasing as measured against the family’s liabilities?

Is the family as a whole dynamically preserving itself?

Is the family's governance system producing more good decisions than bad taking a 7th generational view?

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