In the Financial Informer third Quarter 2021, we look at how wealth is more often than not related to family, how different generations are defined, and a look into the new POPI Act.
A Family Affair
Wealth is often a family thing. One pioneering family member breaks out of poverty and not only sets up the following generations financially but also, hopefully, teaches them the skills to grow and retain the family fortune for generations to come. Doing so isn’t easy. This is how.
There is the saying, “From riches to rags in three generations”. It is sometimes true however wealth is seldom isolated to a single generation, and most who have amassed wealth have the desire to ensure that their assets are transferred to the next generation smoothly, efficiently, and as equitably as possible. The increase in the number of blended, more complex family structures, together with the fact that many families are fractured around the globe, has added a layer of complexity when it comes to estate planning and developing a financial legacy for the next generation. More complex family structures also create the potential for greater family dynamics and idiosyncrasies that require sensitivity and a carefully considered approach to estate planning.
Read the Full financial informer third quarter 2021 below.
How are generations defined?
Currently, five generations make up our society. Each of those five generations has an active role in the marketplace. Depending on the specific workplace, the workforce includes four to five generations.
- Here are the birth years for each generation:
- Gen Z, iGen, or Centennials: Born 1996 – 2015
- Millennials or Gen Y: Born 1977 – 1995
- Generation X: Born 1965 – 1976
- Baby Boomers: Born 1946 – 1964
- Traditionalists or Silent Generation: Born 1945 and before
POPIA goes the Weasel
You are likely to have been bombarded by emails from businesses you deal with, telling you how they are complying with something called “POPIA”. South Africa’s Protection of Personal Information Act (POPIA), drafted way back in 2003, was promulgated in 2020 and went into enforcement on 1 July 2021, triggering a slew of communications from the company’s holding information about you.