Why The Redwoods Initiative

An unprecedented and substantial transfer of wealth will occur over the next 50 years. In a matter of moments inheritors will receive instant wealth, wealth that took a generation (or two or three) to create. More women are now the breadwinners and financial decision makers in today’s household. Statistically, women outlive their male partners by three to five years, thus will be controlling a vast majority of wealth in the next several decades. Entrepreneurs, Actors and Athletes are a unique group of wealth creators often whose focus has been so targeted that the learning curve for financial competence and philanthropy is steep and needs support.

Traditionally, wealth has not been discussed amongst families. The inheritor was often given assets and left to figure it out for himself or herself. Meanwhile, for decades our culture’s norm was to circumvent women family members’ participation in managing money and they were not involved in family wealth planning or making key financial decisions. And when you suddenly come into substantial wealth from a liquidation, a big contract or art sale, the conversation amongst peers and your financial professionals begin to change. It doesn’t take much to see how these scenarios are formulas for potential roadblocks in the intergenerational wealth transfer process and successful transition. Without education and support, how can one expect to avoid the proverb of “shirtsleeves to shirtsleeves in three generations”? Or how can a woman manage through the CRISIS of the 3 D’s, Divorce, Death and Disability, if she is not equipped with an understanding of financial and estate planning issues? And how does the entrepreneur or artist manage his or her passions and focus while navigating sudden wealth issues?

At the Redwoods Initiative we are practicing the NEW Wealth Education. We believe in open architecture, partnerships and collaborations. We believe the inheritor should have basic tools for understanding the complex world of finance. The result is confidence and competence in the matters of managing money and an empowered sense of direction. With women, studies show that they are just as successful investors as men, and that involving them in the investment process can lead to stronger risk-adjusted returns. We provide women an environment to learn and discuss as a group, so to address the individual and family needs that are important to them. Entrepreneurs, Actors and Artists are given a forum to learn and ask questions with peers that have similar experiences as them. At Redwoods, the NEW Wealth Education is about offering education and communication solutions for successful wealth transfer, family sustainability and long term growth of human, social and intellectual capital.