“Wealth is the ability to fully experience life.”
~ Henry David Thoreau
Imagine driving with your focus fixed on avoiding the ditch safely, but never really moving toward a destination. Many families approach wealth the same way: eliminating risk, avoiding debt, and keeping things simple. For years, I thought such an approach was the ultimate form of control. But I began to see that while resources were preserved, they weren’t being positioned to grow, create opportunities, or expand impact. True stewardship goes beyond safety; it’s about purpose, progress, and possibility.
When Safety is All that Matters
For many successful families and entrepreneurs, becoming debt-free feels like an achievement. It reflects discipline, patience, and a desire for control.
Yet maintaining control is not the same as expanding capability. In my years of working, I often meet families who have achieved remarkable results by avoiding unnecessary financial exposure, with no leverage, no outside investors, and no unpredictable obligations. That caution has protected them, but it can also limit the family’s capacity to pursue transformative opportunities.
You cannot scale a legacy by only avoiding losses. At some point, positioning wealth for growth becomes just as important as protecting it.
The Wealth Trap Few Talk About
One family I worked with had a net worth of $25 million and no liabilities. They self-funded every business expansion, real estate acquisition, and shareholder transition. When a unique opportunity arose to invest in a strategic partnership, they hesitated, not because they lacked capital, but because most of their wealth was tied up in long-term, illiquid assets.
By keeping all their capital unencumbered, they unintentionally reduced their flexibility when it was most crucial. Later, they told me, “We thought being debt-free gave us freedom, but it limited what we could do when the right opportunity came along.”
This pattern often stems from something deeper: fear of loss, difficult past experiences, or beliefs about money passed down through generations. Behavioural finance calls this loss aversion, the tendency to prioritize avoiding potential loss over pursuing potential gain. Even for families with substantial resources, this instinct can quietly influence strategic decisions.
The Strategic Use of Productive Debt
Not all debt is the same. Caution is warranted when debt is associated with depreciating assets, consumption, or emotional decisions. However, debt that is intentionally employed to acquire assets that are appreciating, generate income, or fund growth can be a potent instrument.
The structure matters as much as the decision itself. Terms, timing, and control determine whether leverage becomes a strategic advantage or an unnecessary constraint. Thoughtfully used, debt can release capital for reinvestment, create liquidity, and accelerate diversification.
As Warren Buffett stated in his Berkshire Hathaway 2017 Annual Letter (page 4), “It is insane to risk what you have and need in order to obtain what you don’t need.” The opposite is also true: it can be shortsighted to hold wealth in ways that prevent it from creating greater value for your family.
What a Healthy Net Worth Statement Shows
Families often think of wealth in terms of assets and liabilities alone. A more complete approach considers how those assets are positioned across generations, legal structures, and liquidity profiles.
In a well-structured family net worth statement, certain liabilities can be positioned as strategic instruments, tools to acquire appreciating assets, enhance liquidity, or facilitate generational transitions. The result is a portfolio that is more dynamic, diversified, and ready to adapt when opportunities arise.
Positioning Wealth for the Future
The most resilient families preserve wealth by positioning it. Strategic use of debt can:
● Unlock capital for reinvestment without forcing asset sales
● Provide flexibility across ownership and legal structures
● Support diversification and generational transitions
Wealth that remains static or overly concentrated in illiquid holdings can become vulnerable over time. Diversification and access to capital are what make a family enterprise resilient in changing conditions.
Financial independence is not defined solely by being debt-free. It is the ability to act with clarity, take opportunities without jeopardizing stability, and shape a strategy that evolves with your family. Sometimes, carefully structured leverage becomes part of that freedom, enabling action without compromising liquidity, control, or long-term intent.
Concluding Thoughts
If your wealth strategy solely prioritizes safety, it could lead to preservation rather than progress. True wealth is more than protection; it’s positioning your resources to grow, create impact, and endure across generations. The families who thrive are those who approach risk with intention and align every decision with clarity and purpose.
ABOUT THE AUTHOR
As the Senior Wealth Advisor at Beacon Family Office at Assante, Cory Gagnon has supported successful family enterprises to preserve, protect and transition their wealth since 2011.
Cory’s personal objective as a Wealth Advisor is simple. He is committed to supporting families to take control of the areas of their lives that truly matter to them. This commitment revolves around using specific tools and strategies that enable families to take action with confidence which will support them through life’s critical transitions.
DISCLAIMER
The case study mentioned in this presentation is based on actual scenarios, but names and identifying details have been changed to protect the privacy of individuals. This case study is provided for illustrative purposes only to provide an example of our process and methodology. The results portrayed are not representative of all of our clients’ experiences.
ABOUT THE AUTHOR
As the Senior Wealth Advisor at Beacon Family Office at Assante, Cory Gagnon has supported successful family enterprises to preserve, protect and transition their wealth since 2011.
Cory’s personal objective as a Wealth Advisor is simple. He is committed to supporting families to take control of the areas of their lives that truly matter to them. This commitment revolves around using specific tools and strategies that enable families to take action with confidence which will support them through life’s critical transitions.
DISCLAIMER
The case study mentioned in this presentation is based on actual scenarios, but names and identifying details have been changed to protect the privacy of individuals. This case study is provided for illustrative purposes only to provide an example of our process and methodology. The results portrayed are not representative of all of our clients’ experiences.
