These principles
govern every decision I make, whether choosing an investment manager, thinking
about tax strategy, or working with my family to create objectives for the
coming year. Let's look at them more closely now, according to Billy Crafton from San Diego.
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Take hold of the situation and get started straight away.
As a Wealth Strategist, you must create a set of values that will
serve as the cornerstone for future wealth management planning within the
Strategic Wealth Management Framework. You learn about your family's finances,
existing assets, spending habits, projected rates of return, and present estate
plans. You also decide how to establish long-term family and financial goals
such that they are linked and mutually beneficial. You cannot progress in
wealth management without adhering to this basic guideline.
·
Align your family's and company's interests around wealth-building
objectives and strategies.
It's vital to ensure that family members are aligned on shared goals
to successfully implement wealth management strategies, especially when they're
multigenerational. Aligning family members' interests helps to define a
family's identity. It contributes to the common goals and the creation of
economies of scale. A family that gets united around wealth management goals,
for example, has influence and focus in business, philanthropy, and even
politics than individual family members.
·
Establish an Accountability Culture
Although family dynamics are constantly present in family wealth
management activities, the wealth management process is primarily a commercial
activity. You must set up accountability mechanisms and performance indicators
to properly implement your strategy. As a result, objective corporate goals and
performance expectations get reinforced. It also aids in the execution of
wealth-creation initiatives as a solid standard by Wealth Strategist and his
team of wealth management advisers, accountants, attorneys, investment
managers, and others may get measured.
·
Make the Most of Your Family's Resources
The Law of Entropy is a fundamental law of thermodynamics in science,
according to Billy Crafton from SanDiego. It states that our cosmos tends to gravitate toward randomness. I
believe that families are prone to entropy because they frequently appear to
disintegrate, just like portions of our family did decades ago. Families, on
the other hand, may overcome this proclivity towards unpredictability.
·
Independence should be delegated, empowered, and respected.
A healthy family group learns to row together as well as
independently. I've previously mentioned some of the benefits of working
together, but it's also critical to respect each family member's and, over
generations, each family unit's distinct objectives, and ideals. The Wealth
Strategist's and other family members' challenge is to balance between the two
and promote each other's talents.
·
When possible, err on the side of simplicity.
Advisors
will invariably provide you with a fancy alternative for accomplishing amazing
things with your money. Although some of these are excellent suggestions, I
recommend that most people stick to straightforward money management tactics
and products. Even if you're affluent, it may be wise to put the majority of
your money in financial indices or other low-cost, tried-and-true wealth
management tools.
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