Why it's important to be involved in your family's wealth management image

Four Reasons to be Involved in Your Family’s Wealth Management

Published: May 10, 2018

In many families, one member typically takes on the primary role in managing finances and wealth, including working with a wealth advisor. Often, this is the person who has been responsible for the bulk of wealth generation. Others in the family may be involved to a greater or lesser degree, while tending to assume that they have plenty of time to get “up to speed.” At Klingenstein Fields Advisors, we believe in the importance of more inclusive family involvement throughout your relationship.

1. Generating wealth is not the same as overseeing it. Generating wealth involves a skill set that may not always transfer well to successfully overseeing wealth. Another member of your family may be better suited, more disciplined, or more knowledgeable on the topic of wealth management. Or perhaps you balance each other out in terms of risk appetite, goals, and other factors. Multiple perspectives can prove to be valuable.

2. Make sure your goals are considered. Each member of your family may have financial goals very specific to his or her interests, such as a particular cause to support. Meaningful involvement in the wealth management process is the best way to communicate your interests and ensure they are incorporated into your family’s wealth plan. 

3. Set a good example. Passing on financial literacy and responsibility to the next generation is crucial. Even seemingly basic lessons around fiscal responsibility and saving are often a significant contributor to wealth lasting for multiple generations. Younger generations in your family will learn the importance of financial planning by seeing you read your financial statements, and actively participating in meetings with your financial advisor. 

4. Prepare for the unexpected. No one likes to think of loss. However, as you go through life, looking ahead to what will happen when you experience the loss of a family member can help make a difficult time much less stressful. We encourage you to get to know your advisor, participate in the planning and investment process, and understand the state of your finances. 

Important Disclosures

This material is provided for informational or educational purposes only and should not be construed as investment, accounting, tax or legal advice. Always consult a financial, tax and/or legal professional regarding your specific situation. This communication is not intended as a recommendation or as investment advice of any kind. It is not provided in a fiduciary capacity and may not be relied upon for or in connection with the making of investment decisions. Nothing herein constitutes or should be construed as an offering of advisory services or an offer to sell or a solicitation to buy any securities or a recommendation to invest in any specific investment strategy. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future returns. The views expressed herein are as of a particular point in time and are subject to change without notice. The information and opinions presented herein are general in nature and have been obtained from, or are based on, sources believed by Klingenstein Fields Advisors (“KF Advisors’) to be reliable, but KF Advisors makes no representation as to their accuracy or completeness. Although the information provided is carefully reviewed, KF Advisors cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided. KF Advisors represents two investment advisers registered with the Securities and Exchange Commission: Klingenstein, Fields & Co., L.P. and KF Group, LP. If you are a KF Advisors client, please remember that it remains your responsibility to advise KF Advisors, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.