Pathways to Perpetuate

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1 International Association of Advisors in Philanthropy Conference on Philanthropy 2014 April 23-25, 2014 Pathways to Perpetuate Wealth & Family Heritage: Your Legacy for the Future PRESENTED BY THOMAS M. HUBLER HUBLER FOR BUSINESS FAMILIES, INC.

2 I. INTRODUCTION Wealth and money a big issue in our culture Every wealthy family has a wealth preservation plan

3 70% %fail to maintain their wealth to 3 rd generation Shirtsleeves to shirtsleeves in three generations The technical professionals create a plethora of complex structure to secure the wealth, e.g., trusts, family limited partnerships, LLC, LLP, etc., that family members don t understand and are not educated to manage

4 The majority of financial education is on the transaction side, as opposed to dealing with money interaction ti The bottom line is that t in order for families to perpetuate their wealth into future generations, they must build the emotional equity of the family while they are simultaneously building and preserving their wealth

5 To do this, parents must make wealth preparation and growing the family a central part of their legacy

6 II. What is a Legacy?

7 Here s one legacy Will it create value for the whole family? Will it last?

11 Definition of Legacy Webster s definitions: 1. money or property left to someone by a will. 2. Anything handed down by an ancestor.

Success that lasts By Laura Nash & Howard Stevenson

contentment A way to establish your values or

success Limits for the sake of the whole

12 Success that lasts By Laura Nash & Howard Stevenson Authors of Just Enough Experience pleasure or contentment A way to establish your values or accomplishments so as to help others find future success Limits for the sake of the whole Accomplishments The sense you ve made a positive impact on people or things you care about

13 Legacy Model Hubler For Business Families, Inc. Adapted from the Family Legacy Foundation

14 Allianz American Legacies Study The key findings of the study include: There are significant gaps in what baby boomers and their parents expect from, and define as inheritance Non-financial items that parents leave behind like ethics, morals, faith, and religion are 10 times more important to both boomers and their parents than the financial aspects of inheritance

15 Allianz American Legacies Study Legacy Gaps exist because boomers and their parents are not having the in-depth conversations about legacy and inheritance in any truly productive and meaningful ways even though they say they are having such conversations

16 Allianz American Legacies Study Thorough discussions about legacy planning include talking about the "four pillars" that are the core of a true legacy: values and life lessons, fulfilling final wishes and instructions, personal possessions of emotional value, and financial assets and real estate Allianz Life Insurance Company of North America, 08/05

17 III. PHILANTHROPY MODEL Hubler for Business Families, Inc.

18 A. FAMILY GLUE NECESSARY PLANS FOR SUCCESS Family Glue Energy WEALTH PRESERVATION WEALTH PREPARATION Common Vision PHILANTHROPY

19 B. FAMILY PLAN 1. Build the emotional equity of the family Now that the integrity of the family has become a matter of personal choice, it cannot survive except for the regular infusion of psychic energy. ~ Mihaly Czikszentmihalyi Finding Flow, p. 111

20 B. Family Plan cont d. 2. Promote Purposeful Lives (spirituality)

21 Quotes on career Let what you love be what you do.

22 Definition of Spirituality Develop an understanding of your God-given gifts and manifest them for your benefit and the benefit of your family, community, and God or your higher power. Living a purposeful live or the life you were intended to live: What s the one question you were born to answer?

23 Definition of Spirituality cont d. Promotion of another person s spiritual well- being. Words associated with soul amplify it further: mind, spirit, hear life, warmth, humanness, individuality, innermost purpose, emotional, equality, virtue, morality, sin, wisdom, death.

24 Definition of Spirituality cont d. The soul has been imagined as... given by God and thus, divine. The soul s presence is the palpable presence of some sacred otherness in our lives.... you can call that otherness God, the universe, destiny, life or love.

25 Angeles Arrien s Definition iti of Spirituality it Spirituality gives meaning to life, and spiritual growth is about discovering meaning. Spirituality is often expressed in religious terms, but it is the experience of recognizing states of grace, the transcendent, synchronicity, and that which is sacred or holy; it can be found in nature, silence, art, music, family, and friendship....

26 Angeles es Arrien s Definition of Spirituality cont d. It can bring wholeness to the emotional, physical, and intellectual dimensions of life. The spirit, it or life force, within us is the essence of center point of mystery and meaning that t is present at the core of our essential nature. It is the force that allows to integrate t our internal and external experiences....

27 Angeles es Arrien s Definition of Spirituality cont d. The essence of spirituality provides a sense of intactness and wholeness to our nature. When we are in touch with this central core, we experience self-trust and unshakeable faith. Connecting to this core bring us into alignment with what has heart and meaning, and conveys what remains mysterious and transcendent for us all...

28 Angeles Arrien s Definition iti of Spirituality it cont d. It is that t which h makes us unique. ~ Living in Gratitude: A Journey That Will Change Your Life, p. 15

29 Family Business & Spirituality The essence of a family and a manifestation of spirituality are its values. The essence of a family s common vision are the family s values. Common Vision i examples (1) Danz Family and (2) Sweeney Family

30 Danz Common Family Vision In our family and business we promote respect, honesty, fairness and encourage an environment that is loyal and unified. At the heart of our vision is our commitment to generosity, quality, and an appreciation of each other s gifts. As a hard-working and dedicated family, we communicate and celebrate our spirituality. Prayer for Loving Kindness May our family be filled with loving kindness May we be well May our family be peaceful and at ease May our family be happy Father s Individual Vision I and my family are blessed by God s abundance. I am nourished by giving back. May Violet be inspired by God s generous love. Family Kything May Saul inspire those he works with to achieve their highest potential. May Joan experience the quilts of her life and the joy of nurturing God s love in her family. May John continue the feeling of contentment and appreciation for the blessings in his life regarding family and business.

31 Sweeney Common Family Vision Our family circle is an unbreakable bond of support, belief in each other and unconditional love. It inspires us to live our lives with humility, integrity and philanthropy. We manifest this through our families, our foundation, and our businesses. Prayer for Loving Kindness May our family be filled with loving kindness May we be well May our family be peaceful and at ease May our family be happy Greg s Individual Vision I am loving, caring, forgiving, generous, understanding, fair and I have the experience to help my family with their problems, their fears and that I am open and I do very much care for their well being. Kything May Kim be the best wife she can to Charles and the best mother she can be to her children. May she be a supporter, teacher, an advocate for all children and give freely of her time, talents, and money to betterment of her community. May Jeremy have the courage to chase his dream of his new business and building a strong family. With creativity, loyalty and understanding, may he give to his family the essential inputs in making the family more loving, forgiving, and in the process bring the family closer to each other. May Charles be a capable, competent leader that deals with people honestly, fairly and with respect. May he support the family structure and business to the benefit of all. May Stella be a listener and observer of problems, concerns and good fortune. May she offer her wisdom when needed.

32 The Importance of the B.O.S.S. B BUSINESS O OTHER(S) S SELF S STAKEHOLDERS Mission/Goals People/Groups Centrally Involved Yourself People/Groups Peripherally Involved Plans Team Members Customers/Clients Tasks/Projects Results Outcomes Cross-Functioned Representatives Venders Special Interest Groups Family

33 B. Family Plan cont d. 3. The Importance of Promoting Flow in People s Lives a. Work b. Active leisure time c. Relationships ~ Mihaly Csikszentmihalyi

34 C. WEALTH PRESERVATION Money as a Transaction 1. Wills 2. Trusts 3. Investment t 4. LLC (k)

35 D. WEALTH PREPARATION Money as an Interaction 1. Understanding family values re: money 2. Stories 3. Relationships 4. Culture 5. Heritage

36 D. WEALTH PREPARATION Money as an Interaction 6. Stewardship 7. Generosity 8. Family Traditions and Rituals 9. Life Meaning 10. Ethical Wills 11.Effective Management of Personal Finances

37 D. WEALTH PREPARATION Money as an Interaction 12. Commitment to Accumulating and Preserving Wealth 13. Shareholder Education 14. Financial Literacy 15. Spirituality 16. Philanthropy

38 D. WEALTH PREPARATION Money as an Interaction ti 17. Philanthropy Share - Save Spend Initial Family Projects on Philanthropy Value of Service and Volunteerism

39 D. WEALTH PREPARATION Money as an Interaction 18. Importance of Gratitude (spirituality)... the recognition of the unearned increments of value in one s experience the acknowledgement of the positive things that come our way that we did not actively work toward or ask for. ~ Angeles Arrien

40 D. WEALTH PREPARATION Money as an Interaction 19. Family Foundation Donor Advised d Funds Antidote to Consumption

41 IV. CONCLUSION To create a legacy and perpetuate your wealth to future generations, it is important to: 1. See money as an interaction too 2. Build the emotional equity of your family while you are simultaneously building and preserving your financial equity

42 IV. CONCLUSION cont d. 3. Lead a purposeful life which is essential to personal and professional success 4. Service and gratitude for our blessings are the essence of happiness

43 Questions and Discussionssion

Thomas M. Hubler 80 South Eighth Street, Suite 900 Minneapolis, MN 55402 612.375.0640 Email: tomh@thehublergroup.com Website: www.hublerfamilybusiness.

44 Thomas M. Hubler 80 South Eighth Street, Suite 900 Minneapolis, MN Website: Tom Hubler, President of Hubler For Business Families, Inc., integrates the notion of spirit in his work with family businesses. In addition to his consulting, he has served as a professional in residence at the University of St. Thomas in Minneapolis and served on the advisory board for the Center for Family Enterprise for ten years. Formerly he was an adjunct instructor at the University of St. Thomas, where he co-taught a class on Family Business Management. His opinions are widely sought in the national press, and he has spoken nationally and internationally on topics of concern to families of business and wealth. Huber is a certified leadership and career coach from the Hudson Institute of Santa Barbara. He serves on the boards of several Twin Cities non-profit organizations. Hubler is the founder of the Minnesota Family Business of the Year Awards, now in its sixth year celebrating excellence in Minnesota Family Businesses. In his free time, Hubler is an aspiring poet and tends honeybees.

Value Proposition & Brand Strategy

Value Proposition & Brand Strategy David Johnston Vice President Digital Media & Marketing KU Alumni Association davidjohnston@kualumni.org @daviddjohnston 785-864-4764 It started with a simple question