It has been an absolute treat to write this Newsletter for two years now; I treasure your feedback (and referrals are the absolute best form of gratitude!)
We have used a family wealth equation in every Newsletter to add perspective to your definition of family wealth. Getting clear on your family’s why, your family’s unique answer to the tricky question “so what is all this money actually good for?”
The Wealth Equation:
FW = R (HC + RC)
I hope you have asked yourself at some point in this Newsletter’s journey, “ok! I get that my family wealth, my definition of success, requires utilizing my resources well to build stronger people and relationships, so now what?!”
“Now what” is my focus professional this coming year. Goals for the money naturally arise from your vision of family wealth success and aligned tactics should be deployed to accomplish those goals.
The task therefore turns to family wealth strategy.
Most tactical advice is rightfully specific to key topics (investments, finances, tax and insurance) and yet those specific topics are tricky to optimize if it is unclear how they fit within your goals.
Goal setting for families with generational wealth is not given enough focus.
Family wealth strategic questions: where is the world heading, where is your world heading, and what do you want your family to become in that world? Similar to business strategy, these are tricky questions with unclear answers, yet thinking strategically is oh so valuable.
Family wealth strategy is where all great family wealth stewards operate from.
Your family wealth goals will relate to three overarching topics:
- well-being (principally, physical and mental health),
- flourishing (principally, self-actualizing and taking meaningful action), and/or
- impact (supporting others).
Here is my current working definition of family wealth strategy:
Family wealth strategy aligns tactics with your ‘why’ (your family wealth goals) to ensure family wealth stewardship includes profound meaning, genuine affinity, and actualizes your ability to make a difference.
Please let me know your thoughts on this definition…
While there are at least 50 tactical topic areas worth addressing within your family wealth strategy, none are as effective as they could be without clearly identifying your Why, then setting your goals and only then working on tactics.
Cheers to your calm, cool and collected wealth stewardship future!
What is the value of effective family wealth strategy? I love the added meaning the wealth has for the family, I am astounded when families use their resources to build stronger people and relationships leading to more love, and I am impressed when families find their unique ways to make a difference but for me, the value of effective family wealth strategy: reduced stress.
Stress is a killer!
Sure, it is also eustress, but stress derived from family wealth is typically counterproductive. The money (and time) spent on wealth stewardship should be, to as great an extent as possible rewarding. That is my mission!
What’s next for me
In 2024, I embark on a year full of family wealth consultation. It is going to be an exciting year for me! To end 2023, I built a Family Wealth Strategic Review process and plan to complete it with 30 families this year. I hope you are one of them; building your family wealth strategy and aligning it with effective tactics is a fantastic journey.