Generational wealth: It requires discipline and focus

By Susan Rupe

Creating generational wealth is a lot like driving a car, said Gerald Grant II.

“You’re not going to give someone a brand-new Mercedes when they are first learning to drive,” he said. “You’re going to give them a car that’s older. But it’s still a car. It’s the same thing with money. You have to give your kids experience with money first. You give them a little bit of money and let them make a mistake with it so they can learn from it. And those lessons learned will help them in building their generational wealth, as opposed to making the mistakes later when they have more money.”

Gerald Grant II and his son, Gerald Grant III, are a father and son whose practice, G Financial Group, in alliance with Equitable Advisors, focuses on helping clients build generational wealth. Gerald Grant II founded the practice and manages its headquarters in Miami, while Gerald Grant III is the vice president and runs the G Financial Group office in Falls Church, Va. Together, they wrote the book The Power of Generational Wealth.

Generational wealth is “when you’re OK, you can do something for someone else,” Gerald Grant II told InsuranceNewsNet. “Some clients might not have kids to pass something along to. But there are deserving kids out there who could use a scholarship. We let some clients know that there are people out there who are less fortunate than they are and they can make a difference in someone else’s lot.”

As for parents who want to pass wealth to the next generation, Gerald Grant II said, “we’re always going to be dad and mom, telling our kids what to do. We share our ideas with clients and end up with a generation of people who are like-minded and share their concerns with us. And then they, in turn, share their concerns with their children.”

He said he has seen two extremes with parents passing along wealth to children: Some children “just blow right through it” while others are careful to nurture it.

Gerald Grant II said he and his son “take a holistic approach to planning.”

“We start with a questionnaire. A client maybe just needs a budget. They may need a retirement plan. They may need college funding for their children. It’s all about the client. And if you go through the clients’ lifecycle, their needs change over time. As a result, we now have three generations of clients. And we must relate to each generation based on their needs and where they are.”

A new concept to some

G Financial Group serves many African American clients, and Gerald Grant III said that generational wealth is a new concept to many in the African American community.

“A lot of them didn’t receive an inheritance or didn’t have great parents to teach them how to manage money at a young age,” he said. “So we start with how to create generational wealth and why that’s important. Some clients have the viewpoint that you make sacrifices so your children don’t have to make the same sacrifices. Other clients have the viewpoint that, hey, I made sacrifices so my kids have to make the same sacrifices.”

Passing along wealth to the next generation is only part of the equation, Gerald Grant III said.

“You have to educate the next generation about that wealth,” he said. “Giving money to the next generation without giving them the knowledge and information needed to maintain it becomes an issue. It’s just like driving a car. You can’t just say, I’m going to leave a car in the garage and eventually you’ll get the keys. You have to teach them to drive and you have to teach them about money. You have to do your part to make sure the next generation can maintain that wealth.”

Generational wealth requires discipline and focus

Gerald Grant II said he grew up with a strong Christian background and believes his practice is his ministry. Like ministry, creating wealth requires discipline and focus, he said.

“It’s not starting out with a lot. It’s starting out with a small amount and building on it consistently,” he said. “It’s just like when you want to lose 20 pounds, you’re not going to do it overnight. But if you walk three blocks today and then eventually walk six blocks and after a while you can walk a mile, and then walk three miles, little by little the weight comes off. It’s the same way money grows.

“From a ministry point of view, this is my God-given talent – my ability to share things with people that they may not necessarily know. But regardless of what level they are, it’s my responsibility to explain it to them so that they get it. And the more I do that, the more blessings come back to me.”

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected]. Follow her on X @INNsusan.