Thinking Of Hiring A Family Wealth Advisor? Here Are 5 Reasons You Need One.

A happy family who has used a family wealth advisor to resolve conflicts.

If your family has a significant level wealth, a Family Wealth Advisor could help solve some of your problems. You have probably become frustrated at the level of professional services available to the average family. At a certain level of wealth, the typical financial advisor or estate planning attorney is no longer able to address your needs. You need more than a mere trust or a financial plan. You’re concerned with such things as how to pass your wealth to the next generation without spoiling them. You want future generations to continue to thrive and be successful. The typical professional advisor is not equipped to address your needs.

What Is a Family Wealth Advisor?

Many financial professionals claim to be family wealth advisors. It’s sort of the foods at the grocery story that claim to be “natural.” Words can get blurred and meaningless if too many people use them improperly.

When I refer to a Family Wealth Advisor, I’m talking about someone who has received official training in the area. For example, I have a Certificate in Family Wealth Advising from the Family Firm Institute (FFI). In the program, we learned how to map family relationships and dynamics. We learned how to help resolve conflicts over money. And we studied the topics listed below (among other things).

You Can’t Fix Your Family’s Situation Because You Are Part Of The Situation.

As much as you want to try to fix your family’s conflicts on your own, you simply can’t. You can’t be part of the situation, and also look objectively at the situation to come up with possible solutions.

That’s one of the key reasons high net worth families hire Family Wealth Advisors. We can provide a fresh set of eyes, and can speak frankly and openly. We also have special training and experience to help put your family on the track for future success.

One of the reasons a Family Wealth Advisor can be successful where you weren’t is this. We don’t need to worry about hurting people’s feelings because we weren’t going to be invited to your Thanksgiving dinner anyway. (grin) It’s harder for your to speak the blunt truth when you know you are going to have to live with that certain family member for years to come.

5 Reasons You Need a Family Wealth Advisor.

Here are just a handful of reasons you and your family could benefit from hiring a Family Wealth Advisor.

1. Your Family Is Unable to Have Meaningful Conversations About Money.

One of the main challenges for financially successful families is figuring out how to raise children and grandchildren with the same work ethic that the first generation has. It’s hard for your kids to have the same “fire in the belly” as you did when they don’t have to work. (Or at least not work as hard as you did.) This creates internal conflicts.

Many of the families we work with have the common themes of greed, jealousy and resentment. The kids or grandkids are more focused on whether they are getting their fair share, than contributing to the family.

2. Your Family Cannot Agree On Common Priorities And Goals.

You’re reading this article because you have hopes and dreams for your family’s future. But not everyone agrees. (Am I right?) The reality is that you may not all agree. But there is a way of building a bridge to the future.

A Family Wealth Advisor can help.

3. You Want To Protect A Family Enterprise For Future Generations.

If you want to sustain a family enterprise for multiple generations, it is absolutely crucial for the family to adopt that goal. If part of the family wants to liquidate it (so they can spend the cash), that’s not a great environment for building a thriving business.

4. Your Family Has Problems Resolving Conflicts Concerning Money Or Assets.

A Family Wealth Advisor can help your family implement a system of family governance. That’s a fancy way of saying that your family will have rules and protocols for making decisions and resolving conflicts going forward. One common part of family governance is having a Family Constitution. Another is to have a Code of Honor.

5. You Want To Teach Future Generations About Impactful Philanthropy.

Charitable giving helps teach the future generations to think about others and the world at large. They can think about how your family’s wealth can benefit others. It helps a family get out of the greed, jealousy and resentment that tears so many other families apart.

Apply To See If You Qualify For Our Family Wealth Advisor Services.

If any of this article seemed on point for you, please reach out. We help families around the world. Give us a call at 602-443-4888. Or complete our convenient Contact Form. We’re here to help.

ABOUT THE AUTHOR

Founding attorney Paul Deloughery has been an attorney since 1998, became a Certified Family Wealth Advisor. He is also the founder of Sudden Wealth Protection Law.

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