The moment poverty has died. You have enough money to take care of yourself, the next objective is building wealth. This isn’t simply to enjoy it during your lifetime but to ensure that it endures long after you’re gone. This is what’s known as generational wealth. Assets, businesses, and investments that not only survive you but also continue to grow, providing security and opportunity for your children, grandchildren, and beyond.
The challenge, of course, is this: how do you build wealth so substantial, so well-structured, and so resilient that it exceeds your own lifetime? How do you create a financial legacy strong enough to withstand economic shifts, leadership changes, and the passing of decades?
To answer this, we will be using one of the most compelling modern case studies, Bernard Arnault and his family, the powerhouse behind Louis Vuitton Moët Hennessy (LVMH).
Arnault family
The Arnault family route to generational wealth started from saving money from Bernard’s father’s construction business, Ferret-Savinel. Arnault, who studied engineering and economics, gaining the skills to run a company convinced his father in the 1970s to sell the construction side of the business and focus on property development, freeing up cash for new ventures. This move gave Arnault something crucial for wealth building: liquid capital to invest and the freedom to take calculated risks.
In 1984, Arnault saw an opportunity in the luxury sector, which was prestigious but poorly run in business terms. He bought Boussac Saint-Frères, a failing textile group that owned Christian Dior and Le Bon Marché (a Parisian department store). Instead of keeping the entire company, he stripped away unprofitable parts and focused on Dior, a brand with timeless value. This is a classic generational wealth move: acquire distressed assets with strong brand equity, and hold for the long term.
By the late 1980s, LVMH was formed from the merger of Louis Vuitton and Moët Hennessy but was plagued by internal disputes. Arnault saw a chance to take control. Using an aggressive but legal creeping takeover (buying shares quietly until he gained influence), he became the majority shareholder and, in 1989, the Chairman and CEO. This gave him control over multiple luxury verticals: fashion, leather goods, champagne, cognac.
Today Arnault’s wealth is diversified into fashion & leather goods (Louis Vuitton, Dior, Fendi, Celine, Loewe) wines & spirits (Moët & Chandon, Dom Pérignon, Hennessy), perfumes & cosmetics (Dior Beauty, Guerlain, Givenchy), watches & jewelry (TAG Heuer, Bulgari, Tiffany & Co) and many others.
Arnault knows wealth can disappear if control is lost. He structured LVMH ownership so that Groupe Arnault, his family holding company, controls the majority voting rights. This makes hostile takeovers extremely difficult. All five of his children hold senior positions in different LVMH brands. Delphine Arnault runs Dior, Alexandre Arnault is EVP at Tiffany.
The Arnault family, led by Bernard Arnault, is currently ranked by Forbes as the 10th richest in the world, with an estimated net worth of about $162 billion. They are also among the most powerful families globally
Now, let’s break it down:
What is generational wealth
Generational wealth are assets passed by one generation of a family to another. Those assets can include stocks, bonds, and other investments, as well as real estate and family businesses.
In simple terms, generational wealth is wealth that is passed down from one generation to the next. You know those families that never seem to run out of money? From the outside, it can feel like they’ve always been rich. But the truth is, somewhere in their family history, someone put in the work to build that fortune. It might have been decades ago or even centuries but the foundation was laid long before today’s generation ever touched it.
How To Build Generational Wealth
The steps aren’t easy. Far from it, but these are practical that anyone with responsibility can build wealth that not only supports them today but also transcends generations.
1. Start with Seed Capital
Before you think of building wealth for the next generation, you need to be financially fit yourself. That means having substantial savings, diversified investments, and an emergency fund. If any of these are missing, fix them first.
Bernard Arnault’s journey into generational wealth began with capital from his family’s construction business. He didn’t leap into Dior without first securing the funds to make bold moves. If your own “seed capital” isn’t in place yet, your first priority should be building it. Only then can you take the calculated risks needed to create a lasting legacy.
2. Draw Out a Wealth Plan
Once you’re financially stable, you need a clear roadmap. How much of your income will be devoted to your generational wealth strategy? Will you invest evenly across different assets or concentrate on one big bet?
Arnault’s wealth plan was precise: acquire undervalued but prestigious brands, restructure them, and fold them into a luxury empire. He didn’t buy Dior by accident. It was a deliberate step in a long-term acquisition strategy that still guides LVMH today. Your plan should also set timelines, outline strategies, and fit into your annual budget.
3. Build Gradually and Steadily
Generational wealth is a long game. No rush. No shortcuts. Arnault took decades to build LVMH into the largest luxury group in the world. It involved moving from Dior to Louis Vuitton to Bulgari and Tiffany, expanding one step at a time.
For you, this might mean starting with one rental property before moving into commercial real estate, or investing in a few stocks before scaling up. Growth should be steady, not frantic.
4. Wealth To Leave Behind
Generational wealth isn’t just a sack of cash. It’s any asset with enduring value. Depending on your skills, environment, and financial standing, decide what you’ll pass on. Options include:
Mutual Funds: Start early, stay consistent, and let compounding work for you.
Stocks: Like Arnault betting on Dior’s turnaround, pick strong companies with visionary leadership.
Real Estate: Land, houses, or commercial buildings. Arnault has prime real estate holdings in Paris and beyond, integrated with his retail strategy.
A Business/Company: Arnault turned Dior into the seed for an empire. You can do the same by building a profitable company and grooming your heirs to run it.
5. Involve your Family
Generational wealth works best when everyone is aligned. Arnault didn’t keep LVMH as a mystery to his children. Each plays a strategic role in running a brand within the group. Whether you’re building a family business or managing long-term investments, keep your heirs informed so they can step in seamlessly when the time comes.
6. Instill Responsibility and Discipline
A fortune can disappear in one generation without the right mindset. A 2015 study by the Williams Group, which examined 3,200 wealthy families, found that 70% of wealthy families lose their wealth by the second generation and 90% lose it by the third. Arnault has ensured his heirs not only work in the family business but also share the long-term vision. That discipline is why LVMH’s empire is designed to endure for decades after him.
Your family must see wealth not as a lottery win, but as a collective mission, something to maintain, grow, and pass on. Without shared commitment, generational wealth becomes temporary wealth.
Why Should You Build Generational Wealth?
Think about it: if you had to face financial struggles, figure out life from scratch, and navigate your career or business without any head start, it’s probably because your parents didn’t have much to pass down. They may have had enough to manage the family, but not enough to give you a running start in yours.
Choosing to build generational wealth is making a clear selfless statement: “I don’t want those who come after me to start from zero. I want them to begin life with something solid with a foundation I created.”
When you commit to passing down wealth, you naturally become more disciplined with your finances. You spend more intentionally because you know your mission is bigger than personal comfort. Yes, it’s important to enjoy your life, but you must also remember that every wise decision today is Day One of a wealth journey that can stretch far beyond your lifetime.
With Accrue, you can take your first step toward this legacy by creating your dollar account, investing in dollars and earning up to 7% per annum. It’s a simple, practical way to start building an asset base that retains its value, grows over time, and gives your family a head start for generations to come.
So while you live for today, start planning for tomorrow and for decades after you’re gone. The wealth you build today could be the reason your great-grandchildren never have to start from scratch.