It Pays to Give: How Philanthropy Can Fuel Generational Wealth
On the road to wealth, giving away money does not immediately come to mind as a part of that journey. President & CEO of Alexander Legacy Private Wealth Management, Jacqueline Campbell, says that should not be the case.
“Most of your major philanthropists talk about giving. If billionaires are talking about it, why aren’t we? You don’t amass your wealth that way, but you attract it when you are a giver.”
Campbell has more than 25 years of experience in the wealth management industry. She managed an investment team responsible for nearly two billion dollars in assets at one point. She says if you study history, the wealthiest people gave the most away.
“The Rockefellers, the Carnegies, many of them gave away 90 percent of their wealth. Even when they were making money, and definitely upon death, they believed that philanthropy is the true foundation and pathway to wealth creation.”
Of course, it is easier to give when you are already in a good financial position. However, Campbell says even if your bank account is not where you would like it to be, there are practical, philanthropical steps you can take now.
“I have a philosophy called give, save, spend to win, win, win. Give first, then you save, and then you live off the rest,” said Campbell. “For example, if you get $100, first I want you to give 10 of it away to your favorite charity, put 10 in your bank account, and figure out how to live on the 80. If you can have that discipline, the 10 you gave to charity and 10 you put in your savings, one day you are going to need access. That is what I like to call the seeds that you’re sewing so that in the future, that money is always there for you.”
According to Campbell, setting aside money for philanthropy is not much different from setting aside funds for the stock market. “If I put $10 in the stock market and hope it grows, I’m basically trusting and putting faith that the stock market will grow that capital. It’s the same thing we do with philanthropy. When you sew into philanthropy, your seed should be able to grow naturally.”
Campbell adds, oftentimes, people may not even get to experience the benefits of their philanthropy in their lifetime, and that’s okay. Transferring generational wealth should be the goal. Instead of thinking big picture in terms of legacy, Campbell recommends thinking about the biggest picture. She says legacy should be viewed in 100 year increments.
“The Rockefeller family is currently on nine generations of wealth transfer. Can you imagine that? Some of us Black people can’t even get to generation two. We have to break the curse,” said Campbell. “If we’re going to truly solve the wealth gap and help people understand the importance of generational wealth and transfer, we just can’t think about our children anymore. We have to start thinking three generations in the future. This is not just my advice. It’s the tried, tested, proven advice from people like Rockefeller, Carnegie. This is their model. They did it well. Let’s figure out how we can do the same exact thing.”
Alexander Legacy Private Wealth Management (ALPWM) is a full-service advisory firm focusing on making the complex simple for both clients and advisors. For more information, visit www.alprivatewealth.com.
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