Michael Wagner Discusses the Importance of Financial Conversations with The New York Times
Talking about money can be uncomfortable for wealthy families. As a result, many may avoid these types of conversations altogether – but when it comes to wealth, silence is rarely golden. Even the most difficult and honest financial discussions among family members almost always lead to better outcomes than outright avoidance. More often than not, the wealthy families who remain silent about money drift apart, while those who actively participate in these conversations thrive.
One way some family members (particularly next gen family members) avoid financial conversations is by substituting it with philanthropic endeavors. However, this can result in poor charitable decisions. For further insight on the importance of financial conversations and the negative effects of using charitable giving to avoid them, The New York Times recently spoke with Omnia Family Wealth Co-Founder and Chief Operating Officer Michael Wagner.
“People think about poor investments and bad business decisions, but I often see the next gen wanting to gift themselves into poverty,” explains Wagner. “They see all these natural disasters and end up giving away a lot more than they thought they were. Having a rein on philanthropy, putting some structure around it, gives them decision-making framework.”