Centimillionaires' Money Mistakes with Their Kids

Bobby and Sofia Castro built a financial empire from nothing. Starting with a $1,700 loan from Sofia's mother, they founded BHG Financial and grew it into a nine-figure enterprise, complemented by a vast real estate portfolio. Their journey from poverty to immense wealth, however, came with a steep learning curve, particularly when it came to raising their two children.

For years, the Miami-based couple struggled with how to approach money with their daughter, Priscilla, and son, Brandon. Having grown up with parents who worked multiple jobs to put food on the table, their initial instinct was to provide their children with everything they never had. This well-intentioned approach, however, led to significant mistakes that threatened to undermine their hard-earned legacy.

This is the story of how they recognized their missteps, sought expert guidance, and fundamentally changed their family's relationship with wealth to ensure its preservation for generations to come.

The Castros' early parenting strategy was defined by a desire to shield their children from the financial hardships they had endured. By the time their son was born, their annual income had surpassed $500,000. As Bobby Castro explained, their goal was to give their children what they lacked, but they soon realized this created a different problem.

With their first child, Priscilla, they adopted a philosophy of extreme indulgence. Bobby recalled,

We said with Priscilla, our first, we're going to spoil the heck out of her. She's going to have everything.

This manifested in tangible ways, including a starring role on the television show My Super Sweet 16 and the gift of a Mercedes SL 500. The financial support extended to business ventures as well. When Priscilla expressed a desire to start a shoe business, her parents invested without requiring a business plan or conducting any due diligence.

The venture failed, but the Castros now view it as a crucial learning experience. They recognized that their children were being given money without understanding its value or the effort required to earn it. This realization prompted a difficult conversation about their future, leading them to insist that their children either work for the family business or pursue their own careers, rejecting the idea of creating passive trust-fund beneficiaries.

The turning point came when Priscilla and Brandon began working for the family office, Ortsac. The arrangement felt unfulfilling for the children, who were simply receiving funds without engagement. The Castros were confronted with a daunting statistic that is common in wealth management circles.

Bobby noted,

We heard that 70% of families lose their wealth after the second generation, and we realized we needed help to break the family curse.

Seeking a solution, they engaged the consulting firm Legacy Capitals to construct a 100-year legacy plan. This was not merely a financial strategy but a comprehensive framework for family governance. The plan introduced regular, structured meetings to discuss assets, trusts, and strategies for preservation and growth.

The impact was immediate and profound. The dynamic shifted from passive inheritance to active participation. Today, their son Brandon owns and manages apartment investments and is responsible for financing the family office. Their son-in-law is also deeply involved in real estate investments. The children are no longer just recipients of wealth; they are active stewards earning their positions through hard work.

The legacy plan codified a new set of principles designed to prevent future disputes and ensure long-term stability. A central component of this framework is transparency. The entire family, including the children, is involved in drafting the agreements that govern their financial future.

Sofia Castro emphasized their collaborative approach:

Our kids are very involved in writing the agreement. We're putting in rules, regulations, and directions.

The family manual now includes several non-negotiable rules. One of the most critical is a ban on internal litigation. Bobby stated,

Another rule: No family member sues another family member. That's one of our core values, because money creates friction.

Other key directives include:

• Requiring children to gain outside work experience, a lesson the Castros wish they had implemented earlier.
• Establishing clear processes for funding new business or charitable ventures.
• Defining specific roles and responsibilities for each family member within the business structure.

This structured approach has replaced ambiguity with clarity, ensuring that all parties understand their obligations and the consequences of their financial decisions.

The transformation within the Castro family has extended far beyond their balance sheet. By fostering open communication about finances, they have strengthened their personal relationships. The tension that once existed has been replaced by collaboration and mutual respect.

Bobby reflected on the change,

It's all about communication for us. We have to talk about money, the rules around the money, and how we are going to impact the world.

The results are evident in their children's recent achievements. The family recently celebrated a major milestone when Priscilla, Brandon, and their cousins independently pooled their own capital to purchase an 18-unit multifamily apartment building. The Castros stepped back, allowing their children to lead the deal from start to finish.

While they acknowledge they started this process later than ideal, the benefits are now being passed to the next generation. Their children, now parents themselves, are implementing these financial principles with their own grandchildren. The cycle of financial illiteracy has been broken, replaced by a culture of responsibility, communication, and shared purpose that will define the Castro legacy for the next century.