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Stewardship & Legacy Planning

There is a huge opportunity for wealth management firms to educate the children and grandchildren of their best clients.  Research has shown that the vast majority of affluent and ultra-affluent individuals do not believe their children are ready to inherit.  

More than three-quarters of those surveyed said they do not believe their heirs are prepared to inherit wealth.  That estimate is in line with statistics showing that 70% of affluent families lose their wealth by the second generation and 90% do so by the third generation.  

There is also a need to help families articulate the "non-financial inheritance" they want to pass on to future generations.  When people are asked what's most important to them to pass on to their heirs, they consistently rank at the top of the list things like life lessons, family stories, family history, values, and work ethic.  Much further down the list, they mention things like investment accounts, real estate, and personal property.  

If we are not intentional, it is easy to act as if wealth simply means financial capital.  Instead, the implication here is that wealth needs to be defined more broadly to include not only financial capital, but also human capital, spiritual capital, and social capital.

Customized Family Stewardship Meetings

Advisor Solutions 360 can develop and facilitate customized family meetings which addresses all four types of capital based on the framework used in the book, Deep Wealth: An Exploration of Money, Meaning & What Really Matters as depicted below.

stewardship graphic

The sessions will leverage a money personality assessment to uncover motivations of family members pertaining to money:

Why are you making the financial decisions you are making?  This assessment will reveal one of four primary motivators (i.e., freedom, security, power, approval) for each family member.  Chad Hamilton explains in this article at the Gospel Coalition how these financial motivators work and what they reveal about us.  

Three Money Questions

The meetings will be organized according to three main questions addressed in Hamilton's other book, Redefining Financial Freedom.  These are the money questions that will be explored:

  1. * How did you get it? (How we think about work)
  2. * What are you doing with it? (How we understanding investing)
  3. * What is it doing to you? (The importance of generosity & giving)

Below is a short animated video that provides an overview of these questions and gives you an idea of the themes that would be explored with your clients in a family meeting: