In this episode of EWA’s FIN-LYT Podcast, Jamison Smith and Tyler Houston dive into an important and often misunderstood challenges wealthy families face: successfully passing wealth from one generation to the next. With statistics showing that 70% of wealth is lost by the second generation and 90% by the third, they unpack why this happens and what families can do differently.

Jamison and Tyler explain that the breakdown isn’t typically due to poor investing, but rather a failure in communication, education, and governance. When the next generation doesn’t understand where the wealth came from or the responsibility that comes with it, decision-making begins to erode. Without structure, purpose, and shared values, even substantial wealth can quickly disappear.

The conversation highlights how families like the Rockefellers approached this differently by building systems around their wealth, not just the wealth itself. From creating a family constitution and establishing governance structures to instilling discipline and philanthropy, they focused on long-term sustainability. Jamison and Tyler walk through practical components of a strong family framework, including mission and values, decision-making processes, and policies around ownership, employment, and distributions.

They also tackle a common tension many parents face: how to provide for their children without enabling them. The key lies in education, involvement, and instilling gratitude early. When wealth is paired with purpose and responsibility, it becomes a tool for impact rather than a source of entitlement.

If you want to avoid becoming another statistic and start building a legacy that lasts beyond your lifetime, this episode provides a clear and actionable framework to get started.

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