Why Would A Wealth Management Firm Focus on Helping Families Thrive?
Cale Dowell | November 15 2018
Why would a Wealth Management company host an event on helping families thrive?
At Archetype, we have a different scorecard that guides our success. Our mission is to help families thrive across generations. So we started a company that operates on a unique Platform, with unique People, and a unique Process that allow us to completely represent our clients 100% of the time .
So what is the #1 risk to your family’s wealth? It may not be what you think. At our event, “How Thriving Families Cultivate the Next Generation”, we highlighted a massive risk to your wealth that is hiding in plain sight! A study by the Williams Group found that 9 out of 10 wealthy families will lose their net worth by the third generation.
The primary villain: a breakdown of Family Communication and Trust.
As a company that spends every day analyzing risks to portfolios, we would be remiss if we did not analyze this threat. As a result, we sent our team around the country to learn from the leading experts in the field of family communication, psychology, and wealth transfer, and built a process to help families thrive across generations.
Interestingly, US Trust conducted a study in 2018 that identified the top 5 topics High Net Worth investors want to talk about with their advisor:
- Estate Planning
- Trust options and implications
- Strategic philanthropy
- Facilitating discussions about the use of family wealth
- Teaching children/heirs financial skills
And that same study found that only 20% of advisors are engaging with their clients on these topics. This begs the question: “If you can’t talk about it with your advisor, where do you go for advice?”
Your wealth is like a can of gasoline and a match. When used responsibly, in the hands of someone who recognizes the dangers, it can change lives for the better. But, if I gave that same can of gasoline and a match to my unprepared 3-year-old daughter, it would produce destruction.
The reality is that wealth is both a blessing and a burden. And the 1 out of 10 families that “survive” beyond three generations are doing things differently. They are spending time, resources, and energy to improve family communication across generations and develop a shared purpose that is greater than any one member of the family.
So why would a Wealth Management focus so much time and resources on helping families thrive? Let me answer with a question: how could we not?
As people obsessed with helping your portfolio thrive, it’s in our best interest (because it is in yours) to bring awareness to, and a process for, enhancing family communication and trust.
At Archetype, we are all about shedding light on the “elephants in the room” – issues that add risk to your portfolio, your family, and your legacy. We believe that by talking about them, we shrink them down to a manageable size, so we can help families thrive. And it is our privilege to deliver a unique process to help our clients address these issues as we journey with them across generations.
Cale Dowell serves as Chief Operating Officer for Archetype Wealth Partners and resides in Houston with his wife Lynne and their young daughter. Cale is seeking to create a paradigm shift in the way the financial services industry serves and impacts people. Archetype exists to help families thrive across generations.
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