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.