Families of significant wealth often own a diverse mix of assets, including multiple residences, less liquid alternative or private equity investments, and valuable collectibles. David Bokman discusses 10 key factors that must be taken into account in order to create and maintain a flexible wealth management plan that reflects the family's priorities and diverse mix of assets and balances risk, cost, and complexity.
Research suggests that the odds of sustaining wealth across generations are as low as 30%. Through collaboration with experts, internal research, and working with more than 700 of the world's wealthiest families, GenSpring has identified 25 non-financial best practices that we believe enhance a family's ability to sustain family wealth across generations.
Several common "myths" lead wealthy people to avoid life insurance, even when there may be a legitimate need, or to purchase life insurance for the wrong reasons. Life insurance can be an important risk management tool for some ultra-high net worth individuals who need to address concerns about survivor income, estate tax liquidity, or estate equalization.
Wealth is a very sensitive topic to most people, and discussing it honestly with others is often extremely uncomfortable. A thoughtful advisor can help clients more honestly assess their genuine motives, without judging them, and assist in developing a plan that better aligns actual giving behavior with the client's motives.
Capital Sufficiency Analysis is the process of determining whether your family's existing and anticipated financial resources will allow you to achieve your financial and estate planning goals. The analysis provides a framework for making decisions about future spending, investment allocation, estate and philanthropic planning.
When the only tie that binds a family together is sharing business ownership, chances are the Family Enterprise will struggle to remain family-owned and intact for successive generations. To combat this issue, GenSpring created the Family Accord ModelSM which serves as a practical framework and process that can help families as they approach the future together.
Even the most successful family enterprises can be devastated by the complexities and challenges that arise at the dynamic but turbulent interface between the family and the business. How can families improve the odds for successfully perpetuating the family enterprise to future generations?
Goals-based wealth management has attracted a lot of attention over the last few years, as the financial market meltdown of 2008 changed the way many families look at how their wealth is managed. This paper discusses using goals-based strategic asset allocation together with a parallel and comparable approach to estate and financial planning in order to create a new, integrated goals-based wealth management process.
The glorious moment has arrived when a buyer assumes the position of risk, reward, and significance in the business you've built and loved. You receive a big check. First comes the moment of exhilaration—quickly followed by the cold reality of investing the proceeds. Now what?
Prenuptial agreements are becoming a more prevalent part of the marriage process, but most parents, children, and of course, young engaged couples, often find this subject very difficult to discuss. This paper provides helpful insight into addressing this sensitive and often taboo subject.
On our journey to obtain independence and achieve financial success, we usually prioritize having good educational experiences, a sound résumé and a career with a nice salary. The reality is that even with all this, we can still face financial disaster if we don't develop good financial habits. The road to financial freedom requires practice and discipline. Here are a few simple steps to aid you on your journey.
This paper provides readers an overview of the topic of family governance in addition to an approach of creating a system of family governance that has proven successful for many families. Written by GenSpring Director of Family Governance Daisy Medici and Family Wealth Advisor David Herritt, this white paper describes what we believe is one of the core elements of wealth management.
Though the challenges to successful wealth transfer across generations may seem overwhelming, they can be overcome. Freedom within a Framework provides an outline for how families can educate and prepare their heirs for the opportunities and obstacles that lie ahead.
What is it that women really want when it comes to managing their wealth? This concise two-page paper compares six common myths about women and wealth to the realities uncovered in the GenSpring Family Offices 2006 Women & Wealth study.
Wealthy individuals often harbor negative feelings about their wealth: guilt, shame, or regret, but often these feelings are not discussed or acknowledged. Wealth transfer decisions made around these negative feelings can lead to resentment, dysfunction and conflict. To resolve these feelings, one must become truly aware of and accept them.
Every quarter, GenSpring's Investment Advisory Center writes a market overview and commentary for client families to give them a global financial market perspective. This report provides an overview of the market from a GenSpring point of view.
With the gift and estate tax exemption of $5,120,000 per person set to revert back to $1,000,000 at the end of 2012, now is a perfect time to revisit the merits of asset location and its potentially beneficial effects for passing wealth from generation to generation and avoiding costly taxes along the way. In this paper, Bruce Paulson, of GenSpring’s satellite Minnesota local family office, provides context for these complex issues and illustrations of potential planning strategies that maximize a family's balance sheet from a multi-generational perspective.
Much like during 2010, income tax planning is shaping up to be particularly challenging for late 2012. Déjà Vu All Over Again: Income Tax Changes on the Horizon? highlights scheduled income tax rate changes for 2013, their potential impact on the wealthy and several planning ideas to help mitigate the expected higher rate environment.
Kirby Rosplock, GenSpring's director of research &' development, was recently published in Family Business magazine's agenda.
Men play a central role in the decision making for most affluent families, and understanding their views, attitudes, and practices may help us better understand their intentions for their family's wealth. This 2007 GenSpring Family Offices study of over 100 affluent men reveals insights about their views, attitudes, perceptions, and wealth transfer intentions.
Why do some families have the uncanny ability to sustain their wealth and/or enterprise across multiple generations? This GenSpring Family Offices research study, which is culmination of findings over the last four years, explores the relationship of the family business to the family office from a perspective that has never been researched: examining the entrepreneurial orientation and governance practices and perceptions on sustainability of the business and the wealth.
This GenSpring Family Offices study provides a deeper understanding of similarities and differences between men's and women's perceptions of wealth, involvement, awareness and decision making, family wealth practices, and wealth transfer intentions.
In 2006, GenSpring Family Offices sponsored a study of over 100 affluent women to determine their knowledge, awareness and involvement, decision making and communication, family experiences around wealth, attitudes, values and practices for wealth preservation; wealth transfer intentions, and preferred characteristics for their wealth advisor.
The wealth management landscape has come to be characterized by complexity and conflicts of interest, presenting significant challenges for wealthy families. How, then, does one obtain quality wealth management advice and services with no conflicts of interest?
Is GenSpring right for you? To answer this question, it might be helpful to understand the motivations for creating GenSpring.
Over the last dozen years the lines that once existed between firms selling investment products and those advising on their merits have become blurred. Regrettably, regulatory agencies have failed to keep abreast of this change by not requiring banks and broker-dealers to adhere to the same fiduciary standard which has always applied to investment advisors. In this white paper, GenSpring's CEO explains how to tell the difference between a wealth management firm that is selling investment products and one that is your advocate and advises solely on the merits.
In recent years, the multi-family office (MFO) concept has been attracting some of the wealthiest families. GenSpring Family Offices realizes that for families to sustain wealth, they must engage in activities that go beyond managing their money.
While many wealthy people desire to pass most of their wealth to their children, grandchildren, and other heirs, they often grapple with a fundamental question: "Can our wealth benefit our generation and be passed on to future generations while also having a positive impact on those future generations? Our experience tells us that sustaining family wealth is indeed possible.