Striking a Balance between

Investment and Philanthropy

David Werdiger

Private Wealth Management

APAC Summit

November 2015

Overview

• WWW – Wealth, Worry & Why

• Entrepreneurship & Entrepreneurial risk

• Intergenerational Issues & Legacy

• How to Search for Balance

• Sample Implementation

Our relationship with wealth

• What does it do for us?

• What are our attitudes to it?

• What are its limitations?

• Can’t take it with us

• Can it make us happy?

• How much is enough?

Impact of wealth

Wealth

Happiness

Value of $1

Appetite for Risk

Entrepreneurial risk in families

• Need for returns – how much is enough?

• Part of family culture?

• Excitement? Thrill of the ride?

My family

Exceed Organic Growth?

0

20

40

60

80

100

120

1976 1981 1986 1991 1996 2001 2006 2011

7% CAGR

family members

Entrepreneurial risk in families

• Use for strategic asset allocation

• The need for challenge & drive

• ‘Relationship’ risk

Legacy

• How to create/maintain one?

• Understand generational differences

• Challenge & strength at the same time

Generations 101

• Different external influences

• Different internal values

• Things will not be the same!

1920 1940 1960 1980 2000 2020

Foundation

Baby Boomers

Gen X

Gen Y

Millenials

Not Freud

• Patronizing Patriarchs?

• Barriers for generational transfer

• How to overcome?

• Problem recognition

• Fear? Matriarchs?

Methodology for Balance

• Examine the extremes

• It’s all about the shades of grey

Examine the extremes

For Profit Not for Profit

Revenues & Profit Expenses

Taking Giving

Happiness Meaning

Hedonism Altriusm

Ways to find balance

• Mix of financial returns & philanthropy

• Maintaining drive – for what?

• Mix of active & passive

• Best of both worlds?

• Social entrepreneurship

• Impact & ethical investing

My balance

• Second generation family member

• Tech entrepreneur

• Not-for-profit and community activist

• Advisor, writer, speaker

Climbing 3 Mountains

‘Three Streams’

• Entrepreneur • Create and then set free

• Like having children?

• Not for profit • Board & committee

• Provide more than $$

• Personal exertion • Advisor, mentor

• Writer, thinker, speaker

A wide perspective ...

Family

membe

r

Adviso

r /

Mentor

Philanthr

opist

Entrepre

neur

How to create a legacy

• Connect generations

• What are the family’s culture & values?

• Attitudes to wealth

• What values are ‘enduring’?

• Transmitting through stories

• We can’t bring up children ‘in our image’

• Change is inevitable, so we must embrace it

What not to do

• Flaunt wealth

• Hide wealth

• Make assumptions

• Use money to ‘fix’ problems

Conclusion

• Go both directions along the generation axis

• The greatest gift a parent can give: independence & options

• Finding bridges to connect generations

• The power of entrepreneurship

• ‘Meaning’ trumps ‘happiness’

Thank you!

For more information about the marcus

evans investments

summit series:

investmentseries@marcusevanscy.com