Engaging the Next Generation of Family Wealth Advisor - Howard M. Weiss

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Howard M. Weiss of U.S. Trust discusses why family offices need to engage and train the next generation of the family.

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Engaging the Next Generation of Family Wealth Advisor - Howard M. Weiss

  1. 1. www.internationalforumgroup.com Engaging the Next Generation of Family Wealth Inheritors “Family members should be trained to see themselves as stewards of the family wealth, as opposed to just inheritors,” according to Howard M. Weiss, SVP, Family Wealth Advisor, U.S. Trust. They need to be engaged and involved in the family’s financial and business affairs early on, to make the wealth last for generations, he adds. Weiss is a speaker at the IFG Wealth Management Forum 2013, in Miami, Florida, 21-22 October. What advice for successful succession planning could you give? What is the first step that families need to take? First, they need to begin early. They should not just appoint someone in charge of the family’s financial affairs and then get involved only upon the death of a parent. The head of the family needs to put the successors in place while he or she is alive, although it is sometimes difficult to loosen the reins. It is sometimes helpful to provide successors with experiences that go beyond the family’s businesses. Their fresh out of college children could work at another company first to gain some experience. Third, family members need to be mentored into various roles, whether it is to handle investments, businesses or a foundation. Get them involved so that everything does not turn over to one person at the end, at the exclusion of meaningful roles for other siblings. What issues do they encounter in succession planning? Some successors have not been prepared for their new role. If succession planning is neglected for too long, the children may have developed careers of their own and not be interested in the family business or in overseeing the family’s financial affairs. Some inheritors are happy to hand over the financial affairs to somebody else, which is not always the best idea. How could the family wealth be positioned for growth? Even when inheritors do not wish to run the family business, they should be trained into being good overseers and board members. There must always be some level of family involvement. Family members should be trained to viewing themselves as stewards of the family wealth, as opposed to just inheritors. There is a big difference. Stewards focus on achieving a good balance between investing and spending. Inheritors sometimes focus more on spending than investing. Accomplishments should also be encouraged, as success is not just about money. The family can employ their wealth to achieve great things in the fields of education or science. I have observed that if there is good succession planning, family members also do better in their own lives, which also usually translates into their investments doing reasonably well. Interview with: Howard M. Weiss, SVP, Family Wealth Advisor, U.S. Trust Howard M. Weiss of U.S. Trust discusses why family offices need to engage and train the next generation of the family. Weiss is a speaker at the IFG Wealth Management Forum 2013. FOR IMMEDIATE RELEASE IFG WEALTH MANAGEMENT FORUM THE PREMIER EVENT FOR NORTH AMERICAN FAMILY OFFICES October 21-22, 2013, The Ritz-Carlton Coconut Grove, Miami, FL www.ifgwealthmanagement.com
  2. 2. www.internationalforumgroup.com IFG WEALTH MANAGEMENT FORUM THE PREMIER EVENT FOR NORTH AMERICAN FAMILY OFFICES October 21-22, 2013, The Ritz-Carlton Coconut Grove, Miami, FL www.ifgwealthmanagement.com What tools or resources do wealthy families underutilize? Families frequently do not leverage their existing network of financial service providers and business advisors when it comes to training or educating the next generation. They may hire consultants to fix a problem or educate their children when they already have some of the financial empowerment or education programs available to them from their existing advisors. There is nothing wrong with bringing in third party consultants. However, in the process, they should also tap the resources of their advisors. Any final comments? Continually try to engage the next generation in some fashion. When the older generation passes on, the younger generation may wonder whether they need to continue having a family office. If they have never been engaged, they will not know what the value of the family office is. Make sure to stay relevant and connect with the next generation, regardless of how involved they are. They will be your bosses one day. Salpi Balian Press Manager – IFG pressifg@ifgemea.com For more information: pressifg@ifgemea.com About the IFG Wealth Management Forum 2013 IFG’s Wealth Management Forum 2013 provides a unique platform for investment decision makers from single and multi-family offices to engage in vibrant benchmarking sessions and gain practical solutions and best practices to achieve optimal portfolio returns. For more information please send an email to pressifg@ifgemea.com or visit the event website at www.ifgwealthmanagement.com About International Forum Group International Forum Group is a world-leading business information company, organizing exclusive, invitation-only gatherings of business leaders across multiple industry sectors. Providing a platform for senior executives to build mutually beneficial business partnerships, International Forum Group has designed an unparalleled system for matching the core buying needs of the world’s largest organizations with the best solutions available in the global marketplace. Empowering all our clients with the knowledge they need to lead in their respective fields is a fundamental goal of all our forums. For more information, please visit: www.internationalforumgroup.com All rights reserved. The above content may be republished or reproduced. Please notify prior to usage at pressifg@ifgemea.com

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