What’s important about money to you?

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Middle Class Millionaires
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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

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Camille Odermann, B.A.

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

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"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
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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

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Many paths to the money

• Inheritance
• Windfall (dot-com score lottery stock options
  big money job)
• Earning, saving and investing

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Whats this have to do with Family Business?

• Many of the new MCMs 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
• Its 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

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Exercise

• Make a list of clichés about money that were
  present in your home when you were growing up.

Make a list of clichés that you gave or are
giving to your children
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Whats 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

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When Wealth Comes Suddenly

• Personal conflicts
• Inter-generational conflicts
• Disbelief
• impact on the children (each generation)
• Financial management issues

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15 Minute Break
When you return please sit at your Generation
Table
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Exercise

• Whats important about money TO
  YOU?

• Whats important about ___________ to you?

• Is there anything more important than
  __________ to you?

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What Money Can Provide

• Security
• Freedom
• legacy -- The Greater Good

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What Money (ALONE) Cannot Provide

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

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ObstaclesFiscal/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 cant bring happiness)

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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...)

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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?
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15 Minute Break
When you return please sit at your FAMILY Table
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Getting the Million(s)

• For most of us, its no easy task
• Requires sacrifice
• Takes a long time to achieve and longer to believe

But thats nothing, compared to .. ?
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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

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Exercise Generation Groups

• Personally and individually
• Imagine yourself 20 years from now

• What have you accomplished?

• How have you paid for it?

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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 DONT you want to happen with the money?
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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?

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Protecting the Vision

• Keeping the money working for several generations

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Discussion