“Generational wealth” is one of the most overused phrases in personal finance.
Someone receives an inheritance from a grandparent, and suddenly it’s labeled generational wealth. But if we are being precise, most inheritances don’t qualify. The data consistently shows that the average inheritance lasts only one to two generations.
That is not generational wealth.
Real generational wealth lasts three, four, or more generations. And the reason it does has far less to do with the size of the portfolio than most people think.
What Generational Wealth Really Is
Generational wealth is not just money.
It is money plus philosophy.
It is assets plus behavior.
It is capital plus education.
If money alone were enough, history would look very different.
A classic example is the contrast between the Rockefellers and the Vanderbilts. The Vanderbilt family accumulated enormous wealth, even more than the Rockefellers at one point. But they did not pass down a clear philosophy for how money should be treated, protected, or used. The wealth dissipated rapidly.
The Rockefeller family, on the other hand, focused early on teaching their children and grandchildren how to think about money, responsibility, stewardship, and long-term decision-making. As a result, their wealth and influence have persisted for generations.
The lesson is simple: money without guidance rarely survives.
Who Is Actually in a Position to Build Generational Wealth?
Many people assume generational wealth is reserved for families with hundreds of millions of dollars. That belief stops progress before it ever starts.
In reality, there are two distinct paths to generational wealth.
1. Families Without Significant Wealth (Yet)
You do not need $100 million to start building generational wealth.
If you teach your children:
- what disciplined work looks like
- how money is earned, saved, and invested
- how to delay gratification
- how to think long-term instead of short-term
you may be creating the spark, not the finish line.
Generational wealth is often built like a relay race, not a sprint. One generation hands the baton to the next. That next generation builds momentum. Over time, the compounding of behavior, opportunity, and capital does the heavy lifting.
You may not be standing on the plateau yet, but you can absolutely build the road that leads there.
2. Families With Significant Wealth Today
If you already have $10, $20, $30, or $40 million, the responsibility becomes even clearer.
Money alone does not guarantee success for the next generation. In many cases, it increases the risk of failure if the right framework is not in place.
For high-net-worth families, generational wealth requires:
- intentional education, not just distributions
- clarity around values, not just trusts
- alignment between capital, purpose, and responsibility
Without that structure, wealth can become a burden instead of a blessing.
The Framework That Matters: Grow, Protect, Preserve (GPP)
Whether you are building wealth or already managing significant assets, generational wealth starts with understanding one core framework:
Grow. Protect. Preserve.
Each phase matters. Each phase requires different decisions. And most families struggle because they are operating in the wrong phase without realizing it.
- Grow focuses on accumulation, opportunity, and intelligent risk.
- Protect focuses on risk management, tax efficiency, and downside control.
- Preserve focuses on sustainability, legacy planning, and multigenerational continuity.
You cannot treat preservation money like growth money.
You cannot protect what has not been built.
And you cannot preserve wealth without clarity on values and intent.
Understanding where you are in GPP determines how you invest, how you structure assets, and how you involve the next generation.
Why This Matters Heading Into 2026
Generational wealth is not created in a single year.
But 2026 can absolutely be the year you:
- get clear on your role in the generational timeline
- define the philosophy you want passed down
- align your money with long-term intent
- move from accidental outcomes to intentional ones
The earlier this clarity is established, the more powerful the compounding effect becomes.
The Shortcut (If You Want One)
If you want to fully understand how Grow, Protect, and Preserve apply specifically to your situation, this is exactly what we do.
At Mills Wealth Advisors, we work with business owners and entrepreneurs to help them align their wealth with their long-term goals, family values, and legacy objectives.
If you would like to walk through what generational wealth actually looks like for you—not in theory, but in practice—you can schedule a consultation. We will talk through your goals, your family dynamics, and how to structure your wealth so it has a real chance to last beyond you.
Because generational wealth is not about how much money you leave behind.
It is about what that money is capable of doing long after you are gone.
PS – Here is a video going through this same idea.