Financial advisors working with wealthy families certainly have their work cut out for them. Learning how to communicate with wealthy families, specifically the decision-makers in those families, is a skill that can take years to master. Ironically, though, the primary function for financial advisors working with investors who must work for a living is protect wealth, to slowly build, to slowly spend, to continuously save and to find, analytically, investments that will assist in that endeavor.
For wealthy families, however, protection of assets does not appear to be the most important facet of financial advice. While things like protecting assets, saving money on taxes, are important, understanding the values of the family, its legacy and sense of community, figuring out the goals and dreams of the primary stakeholders for each generation and assisting the family as a whole in being its best version appears to be a much more important factor in helping a wealthy family maintain their wealth.
For more on protecting family wealth, check out our new article tomorrow.