Family Offices and Private Wealth Advisors Are on The Verge of Substantial and Unnecessary Losses…Just When the Future has Never Been Brighter!
- Mark Demos
- 8 hours ago
- 3 min read
There are two Prime Directives that drive Fiduciaries (Private Wealth Advisors and Family Offices), in Wealth Management in working with UHNW individuals and families:
1. Managing the growth of the Financial Portfolio.
2. Protecting that Financial Portfolio by mitigating any potential or known risks.
Growth and Protection. Crescentia et Prōtēctiō. A powerful but simple strategy.
Those two same Prime Directives are what drive The Family People Office™. The difference is the nature and substance of the Portfolio™ whose Growth we manage and Protect from risk. It consists of People and is a Family Capital Portfolio™.
In my next few articles, (see subjects at the end) I will be identifying how absolutely indispensable The Family People Office™ is to the future of Total Wealth Management.
Without us, Family Offices and Private Wealth Advisors are headed for major losses all the while standing on the threshold of the most amazing opportunity in Wealth Management history; The Great Wealth Transfer.
Those losses include:
The loss of the families you work for, due to disharmony, divorce, drugs, depression, disillusion, death and ultimate disintegration.
The loss of their wealth that you manage, due to family disintegration. “As Goes the Family, So Goes the Family Office” – Mark R. Demos
The loss of the future for Family Businesses, because your assessments for Succession are deficient and your selections flawed. You did your due diligence as a Fiduciary but based on limited information which did not include their Human Capital Profile and more extensive knowledge of potential risks.
The loss of family stability is because you constructed Governance structures and processes based almost exclusively on legal protections with a pinch of enhanced communication and spoonful of character. Governance is run by people whose talents and character must be known and employed to build and protect their families.
The loss of NextGen beneficiaries as clients because they don’t know who you are and likely don’t trust you. If you are a stranger, AI and a college drinking buddy will be their go-to for financial and investment advice. Their lives and their inherited wealth are at significant risk.
The loss of the belief that better Financial Education by itself is the pathway to fiscally mature and responsible beneficiaries. Wealth without values, virtues, faith, beliefs, character and personal service of others, has little to no lasting power or value. It is destructive.
I can give you twenty-five examples of how these losses played out in the lives of families The Legacy Forum™ has worked with. From disappointment, to sadness, to indescribable agony. Most avoidable, some not. Why take the chance!
Lastly, there is the loss of never experiencing how collaboration with The Family People Office™ could potentially and significantly enhance your work as a Family Office or Private Wealth Manager. We are not your competition; we are what you need to thrive and provide a competitive advantage!
In coming articles, I will explore how The Family People Office™ mirrors Family Offices and the work of Private Wealth Advisors. They have the potential for powerful collaboration:
· AI/High-Tech for Family (Financial) Offices vs High-Touch for Family People Offices™.
· The Analysis of Human Capital Assets
· The Private Wealth and Family Office Advisor vs The Family Office Advisor
· The Positive Forensic Profile™
· What is in The Human Capital Portfolio™
· The UHNW Family Risk Matrix
· Factoring The Cost of Human Capital Failure and Loss.
· Investing Financial Capital vs Investing Human Capital
· Why without Values, Virtues, Faith/Beliefs, Character, and Service We Will All Fail.
Here is to a future where The Great Wealth Transfer positively changes the lives of individuals, families, communities, and the world!
To speak to Mark R. Demos, the author you can message him on LinkedIn, email or call at (425) 492-4300
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