Living Richly: Seizing the Potential of Inherited Wealth (Legacy Press USA, 2010)
Book Review by Sara Sheckler
The title of Myra Salzer’s book holds double significance. The author stresses that it refers not just to enjoying the financial windfall of inherited wealth but also to using it to create a life that’s abundant in emotional fulfillment.
Living Richly is Salzer’s second book, following The Inheritor’s Sherpa: A Life-Summiting Guide for Inheritors published in 2005. Salzer, who founded The Wealth Conservancy Inc. in 1983, is a wealth coach and inheritor’s advocate.
Co-authored with Greg I. Hamilton, Living Richly targets the fortunate few who inherit millions, even tens of millions of dollars, yet may be gripped—if not by an inexplicable guilt then by overwhelming sense of responsibility or other bothersome feelings caused by such a sudden windfall.
A page on the Wealth Conservancy website says Living Richly “is not about finance; it is about human potential.” Salzer shares real-life stories of the struggles inheritors face and shows how thoughtful heirs overcome their misgivings to make the most of their wealth. One of the book’s key messages: “When more inheritors live richly, rather than succumbing to the burden of their wealth, the potential becomes astounding.”
Her book is divided into seven chapters prefaced by an introduction titled “Money, Myth, Soul and Work,” which reads in part: “No matter where your money came from, no matter what confusion it brings, no matter what strings may be attached, as an inheritor your wealth is a fact of your life. Too many people say ‘must be nice,’ thinking you’ve got it made. Others are critical … ; they say temptation, laziness, greed and a lack of purpose will bring you down. I fall somewhere in between: Inherited wealth need not be a loathsome burden, but it’s also not an express train to enlightenment.”
Although Salzer imbues her book with a serious tone—after all, living affluently is a serious business, what with dealing with estate taxes, financial planning, family members squabbling over the fortune, etc.—Living Richly is careful to underscore the importance of feeding the souls of newly minted millionaires even while their coffers runneth over, and she tempers her cogent financial advice with a chatty voice.
For instance, in the opening chapter, “Net Worth vs. Self-Worth,” Salzer writes: “Much of my professional journey has turned out to be a very personal one. In assisting my inheritor clients through the stages of wealth and working with them toward a position of empowerment, I’ve almost always found myself caught up in the personal dynamics of life, family, passion, history and vision.
“Working with inheritors is not just about the material aspects of money or the mechanical details of a portfolio, a life spending plan, or even a legacy that will outlast a lifespan. On the contrary, it is a surprisingly complex and sometimes agonizingly introspective process. I say ‘agonizing’ with the sort of affection normally reserved for the freakish masochistic set. That’s because, in my life, soul-searching is such a painfully beautiful process that it makes me want to burst. Sort of like the enigmatic character Ricky Fitts in American Beauty when he said: ‘Sometimes there’s so much beauty in the world I feel like I can’t take it, like my heart’s going to cave in.’
“In many ways, becoming a competent and inspired inheritor is one of the most painfully beautiful paths toward self-discovery and meaningful accomplishment in the world. My clients have shown me that inherited wealth impacts everything in your life, from relationships and career choices to your ability to grasp your truest essence and find your ultimate path to fulfillment.”
Leadership, Salzer reasons, is a necessary trait for inheritors. In the first section of chapter four, “Your Team,” she writes:
“If you haven’t thought of yourself as a leader before, you [had] better start coming to terms with it. Leadership comes in many forms, and sometime in our lives (if not on a daily basis) we all must find the ability to listen, learn, think, decide, act, and lead. As an inheritor, not only are you forbidden to weasel out of this requirement, you must step up almost immediately.
“Certain clocks begin ticking from the moment inheritors come into a fortune. Sometimes the stopwatch has already begun months or years earlier; sometimes before you were born. Stopwatch or time bomb? It’s more like a stopwatch, but just for fun let’s pretend it’s a bomb.
“Many inherited benefits have time limits, eligibility windows, and details that evolve (or vanish) over time. Federal law, for instance, has a set time period for accepting or disclaiming the benefits provided by a will. Most beneficiaries of trusts, as another example, have different levels of access to their funds as they reach certain ages.”
And the dutiful heir cannot ignore the tax consequences of his or her largesse.
Salzer continues, “An example that faces every inheritor is the array of tax questions that surround any wealth transfer. Tax benefits and liabilities vary with the tax codes, which can seem to change with the winds. Certain combined tax liabilities are now over 70 percent (as just one example of the variables), so failing to understand your tax options relatively quickly can drastically affect your financial picture (in ways with which only your friendly taxing authorities would be pleased).
“Assuming you accept this urgency, defusing your own peculiar time bombs is going to require leadership. You might be tempted to jump in there like the movie hero and start clipping wires, but here’s where the time-bomb ruse ends. Please recall my introduction’s ‘don’t panic’ clause: You of all people can afford to take the time to get these decisions right. And that means becoming a leader.”
Salzer’s knowledge of the potential pitfalls of Big Money and her empathy with those who face life-changing choices that few others will understand are clear. She is an eloquent disseminator of all things financial. In addition, the conversational tone of her book softens the daunting and complicated monetary, as well as emotional, challenges faced by the mega-millions set.
Crammed with Salzer’s solid financial expertise and detailed guidance, Living Richly is a must-read for those who find the opportunities and burdens of wealth suddenly thrust upon them.
Sara Sheckler is a freelance writer based in the metro Atlanta area. She is a frequent contributor to WEALTH magazine.
Tags: heirs, inheritance, millionaires, suddenly wealthy, wealth coach