The Wealth Transfer: Why Most People Who Receive Wealth Lose It

By Derek Whitaker, Founder, Blu Sky Factory · Updated 11 November 2026

The short answer

Most people who come into money lose it, not because they're foolish but because they've never handled it before. On The Greater Wealth, multi-millionaire Larry Wood put it bluntly: give 100 people $5 million and "less than a dozen" would have grown it five years later. The difference is experience, and experience can be learned, mostly by spending time with people who've already done it.

Derek Whitaker and Travis Carter asked Larry Wood, who taught on Kim Clement's wealth-transfer prophecies in Perth in May 2026, for his view on the US midterm elections of 3 November, where Democrats won both houses of Congress. Larry believes the result was not fair and explains why; the episode includes footage of the voting-machine problems reported on election day in Oklahoma City and Westchester County, New York, and President Trump's own response.

The second half turns to what all of it means for ordinary Australians, and to the question Larry is known for: what happens to wealth once it changes hands.

The Greater Wealth with Derek Whitaker and Travis Carter, with guest Larry Wood. Recorded 9 November 2026 at Edge Studio, Perth.

Derek's question

At 45:03, Derek asked the question this post is built on:

"Larry, if wealth changes hands in the years ahead, what will distinguish the people who build something lasting from those who receive it and lose it?"

Larry's answer:

"You know, most people are going to screw it up. If you gave 100 people $5 million, very few of them, I would say less than a dozen, would in five years have grown it to any significant way. And the reason is, is because they don't have experience with it."

Why do people who come into money lose it?

Larry's answer is experience. He says he holds tens of millions of dollars today, but he built it over 35 years, starting with $13,000 his brother gave him while playing professional basketball. Between them, he says, the two brothers "have gotten wealthy five times, made millions of dollars five times… and we've lost it four of the five times."

"Your natural instincts don't serve you very well the first time you come into it."

That's the trap for anyone on the receiving end of a windfall, an inheritance or a business sale: the first time is the hardest, and most people only get one.

How do you keep wealth once you have it?

"I did not get wealthy until I started hanging out with other wealthy people."

Larry's point is that money is learnable: "Rich people around the world, wealthy people around the world share a lot in common. It's a learnable thing." His practical advice is to find people who've been ahead of you: "It's so hard to cut a new path through the jungle. It's so easy to follow somebody who's already done so."

How do you keep wealth in the family for generations?

Larry describes the goal as holding on to money and influence, "intergenerational wealth", rather than living "opulent lifestyles". He contrasts consumption with stewardship, and sees the next generation of wealthy people "investing in other people", quoting Jesus: "if you want to be the greatest, you've got to be the servant of all."

What is the great wealth transfer, and does it apply in Australia?

"The wealth transfer" means two things in this conversation. Financially, it's the large amount of wealth expected to pass between generations in the coming decades, in Australia as elsewhere. For Larry and many Christian listeners, it also refers to prophetic words, including Kim Clement's, about wealth moving into the hands of people who will use it well.

Larry's book Stewarding the Wealth Transfer: A Study on Kim Clement's Eight Wells is about the part both readings share: what people do once it arrives. On air at 40:27 he describes Clement's "eight different things" coming as opportunities, the eight wells of the title. He is also, with Lauren Atkinson, co-author of The Rise of the Kingdom Billionaires.

Why is home ownership slipping away for young Australians?

At 39:30, Derek put the numbers plainly: "the average house price in Australia is $1.2 million… Wages have not moved in line with that at all." Travis told the story of a couple he met in Sydney with fancy cars, who said they couldn't afford a house, "so I might as well spend my money on a car." Derek's conclusion: "The system isn't working."

Where can Australians learn how to manage and keep wealth?

Blu Sky Factory, founded by Derek Whitaker in Perth, teaches financial education for Australians: how money and the financial system work, how to prepare for change, and how to build and keep wealth. Its free masterclass, The Day I Found Out My Money Wasn't Mine, starts from Derek's own experience of having his bank accounts frozen in 2023. Blu Sky Factory provides education, not personal financial advice.

Your questions, answered

Keeping wealth

Why do most lottery winners and heirs lose their money?

A common explanation is inexperience: a large sum arrives faster than the skills to manage it. On The Greater Wealth, multi-millionaire Larry Wood estimated that if 100 people were given $5 million, fewer than a dozen would have grown it five years later, "because they don't have experience with it." Many financial educators also point to spending that rises to match the windfall, and to pressure from family and friends.

How do you keep wealth once you have it?

It's widely held that keeping wealth is a different skill from making or receiving it. Larry Wood's answer on the show was relationships: "I did not get wealthy until I started hanging out with other wealthy people." Others commonly recommend slowing down big decisions after a windfall, separating money for living from money for growing, and learning how money and markets work before committing large sums.

How do families keep wealth for generations?

Many advisers say it depends less on the amount than on what each generation is taught. Larry Wood described the goal as "intergenerational wealth" rather than "opulent lifestyles", and the next generation of wealthy people as "investing in other people." Teaching children about money early is a recurring theme in the episode.

The wealth transfer

What is the great wealth transfer?

Financially, it's the large amount of wealth expected to pass from older generations to younger ones over the coming decades, in Australia as elsewhere. Among many Christians it also refers to prophetic words, including Kim Clement's, about wealth moving into the hands of people who will steward it well. Larry Wood's book Stewarding the Wealth Transfer: A Study on Kim Clement's Eight Wells is about what people do once it arrives.

Who is Larry Wood?

Larry Wood is a US businessman and author who says he built his wealth over 35 years, starting with real estate. He wrote Stewarding the Wealth Transfer: A Study on Kim Clement's Eight Wells, co-wrote The Rise of the Kingdom Billionaires with Lauren Atkinson, taught in Perth in May 2026, and runs mentoring groups. His views on the show are his own.

Learning

Where can Australians learn how to manage and keep wealth?

Blu Sky Factory, an Australian education company based in Perth and founded by Derek Whitaker, teaches how money, investing and the financial system work. It offers a free masterclass at bluskyfactory.com/wealth-training, a weekly podcast, The Greater Wealth, on YouTube, Rumble and Spotify, and programmes such as Prepare to Prosper for people ready to go further. It's education, not financial advice.

Three questions to ask yourself

If money arrived tomorrow, do you know what you'd do with it, or would you be learning on the job?
Who do you know who has kept wealth for 20 years or more, and when did you last ask them how?
Are you building experience now, while the amounts are small?

Sources

Education only. Nothing here is personal financial, tax or legal advice.