Insight
Wealth insight: Discussing goals can help ultra-high-net-worth families preserve wealth.
Talking about money: breaking the taboo
Ultra-high-net-worth families can help maintain unity and wealth preservation by simply discussing their financial goals, according to a study, "Algorithms of Wealth." But this means that these families will have to overcome a common taboo: discussing their family wealth.
But what are the key factors in delaying such a discussion? When asked what was the number one hurdle to achieving financial goals, 43% of respondents in the study gave the most common reply: family disputes.
In "Talking about Money; Breaking the Taboo," we discuss the findings of the survey1 and some practical strategies to help overcome family disputes and promote a positive family engagement.
Ending the conflict loop - While it may seem that conflict is inevitable, the truth is that more engagement, not less, leads to better outcomes.
Under 21 and in the dark - The youngest generation is largely kept out of the conversation until they become young adults. Most receive little formal or experiential education growing up.
Seeking guidance - When confronting difficult financial problems, some wealthy Americans rely solely on themselves. Others turn to family or wealth advisors.
Goals-based investing - Focus on identifying clear objectives for individual, family and philanthropic endeavors. This helps improve investing success and promotes better communication and understanding among family members.
Teach your children well: how to integrate kids at any age - There are three key pillars to prepare the next generation: Choose age-appropriate activities to help kids develop their financial literacy; be mentored (and mentor others); and participate in experiential activities.
A seat at the table: building a personal board - Adopt a “boardroom” approach that includes the entire family in developing shared goals and strategies. A structured approach that combines input from family and professionals leads to better choices and more family unity.
1 Survey of 275 ultra-high-net-worth investors where average total financial assets of the individual respondents were $18 million.
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SEI Private Wealth Management is an umbrella name for various wealth services provided through SEI Investments Management Corporation, a registered investment advisor. Investing involves risk including possible loss of principal.
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