Jerrold Shapiro, Ph.D. Don Odermann,M.A.

• Professor, Counseling Psychology, SCU

• Clinical Psychologist• Family Business

Consultant• Author: nine books;

200 + articles

• Investment Advisor 25 Years

• Former Peace Corps country director

• Specialist corporate retirement plans

• “Personal” CFO• Scholarship fund for

Dominican youth

Camille Odermann, B.A.

• Second year in the Family Business• Multi-lingual• Former teacher• 401k Specialist

"The human race has had long experience and a fine tradition in surviving adversity. But we now face a task for which we have little experience, the task of surviving prosperity."

‑ Alan Gregg

Who are the middle class millionaires?

• Normally we consider a person a MCM when they have $1M + in net worth excluding their primary residence

• People who are new to “real” money - They did not grow up “rich.”

• People with middle class values• people who are family-centered

Many paths to the money

• Inheritance• Windfall (dot-com score; lottery;

stock options; big money job)• Earning, saving and investing

What’s this have to do with Family Business?

• Many of the new MCM’s will inherit family businesses and wealth over the next two decades

• 40 - 60 million Americans of the baby boomer generation will inherit at least that million dollars

• These are ourselves and our customers• It’s easier to lose $1M than it is to earn it - the

family business is at risk without proper management of these funds

• Generational differences in values about money

Exercise

Make a list of cliché’s about money that were present in your home when

you were growing up.

Make a list of cliché’s that you gave or are giving to your children

What’s important about money to you?

• Security• Freedom• improve my life and that of my

family• Win a competition• Try to demonstrate personal self

worth by financial wherewithal• Improve the community

When Wealth Comes Suddenly

• Personal conflicts• Inter-generational conflicts• Disbelief• impact on the children (each

generation)• Financial management issues

When you return please sit at your Generation Table

Exercise

• What’s important about money TO YOU?

What’s important about ___________ to you?

• Is there anything more important than __________ to you?

What Money Can Provide

• Security• Freedom• legacy -- The Greater Good

What Money (ALONE) Cannot Provide

• Feelings of security regardless of numbers

• Feelings of freedom• Protection from guilt and fear• Wisdom• Health and happiness

Obstacles:Fiscal/Psychological

• Greed and Fear• Money as a taboo subject• Guilt and competitiveness• lack of knowledge on what money

can and cannot bring (i.e. it can’t bring happiness)

Psychological Barriers

• Fears of the unknown vs stagnation of the status quo

• Internal experience of wealth vs external “realities.” (The depression experience)

• Inbred values (Penny saved ...; eat drink and be merry...)

Exercise

What do you find disquieting about how members of your generation relate to money?

What do you find disquieting about how members of the other generation in your family business relate to money?

When you return please sit at your FAMILY Table

Getting the Million(s)

• For most of us, it’s no easy task• Requires sacrifice• Takes a long time to achieve and

longer to believe

But that’s nothing, compared to …..

Keeping and Growing it

• How quickly it can go – “the tech wreck”• Spending Habits and Standard of Living

(examples from sports; celebrities)• The old Family Business slogan:“Coveralls to coveralls in 3 generations”• Finding the “holy Grail” -- buying for

happiness

Exercise: Generation Groups

Personally and individually• Imagine yourself 20 years from now

What have you accomplished?

How have you paid for it?

Exercise: Generation Groups

• Now for a 100 year plan Pick the age of your demise

What will you have accomplished by that date?

What will your money do for the remainder of the 100 years?

What DON’T you want to happen with the money?

Family Groups

• Explore the similarities in the 20 and 100 year plans

• Explore the differences • What stands out as NEW

information?• What do you need to do next?

Protecting the Vision

Keeping the money working for several

generations