multifamilyoffice

A bit like the evolution of the interweb, wealth advice has gone through some fairly hefty iterations.

From a time when it was largely about money and compliance, to approaches that demand a far deeper understanding of family dynamics, as well as a holistic approach to wealth. 

Where we’re at now has been termed Wealth 3.0.

It involves a pretty big mindset shift - not only for founders and family elders who have been guarding and growing their assets since formation, but also for the advisers who guide them. 

In this third episode of Purpose of Wealth, host Narelle Hooper unpacks developments in the role of family wealth advice, the new skills this is demanding of wealth advisers, and a look ahead to what’s coming - as she sits down with Dr Dennis T Jaffe, co-author of Wealth 3.0: The Future of Family Wealth Advising, and Brad Simmons, partner in the Family Office with Mutual Trust. 

Want to know more about the groundbreaking research Why the Modern Family Office Matters? Head to mutualtrust.com.au - or email us at purposeofwealth@mutualtrust.com.au 

Purpose of Wealth is hosted by Narelle Hooper
Producer and editor is Samuel Phelps 
Executive Producer is Lauren McWhirter 

See omnystudio.com/listener for privacy information.

You are ready to hire a professional but with over 300,000 people calling themselves financial advisors, where do you start?

Multiple studies have proven that a good advisor can add 3% or more in value per year to their clients. Finding a good advisor with the right competence and without conflicts of interest is harder than it seems.

Brandon and Justin give you exactly what to look for once you’ve decided to start looking and detail the value the real ones can add.

Have questions for an upcoming episode? Want to get free resources, book giveaways, and AWM gear? Want to hear about when we release new episodes? Text “insights” or the lightbulb emoji (💡) to Brandon at (602) 704-5574 to join our new AWM Insights Network. On an iPhone? Click HERE to join.

EPISODE HIGHLIGHTS:

• (1:05) If I don’t want to do it alone, how do I assemble a competent team?
• (2:32) There is no regulatory body that regulates who can call themselves a financial advisor like in the medical or attorney field. This is a detriment to the public.
• (3:40) Unfortunately salesmen in the industry can take advantage of clients very easily in this industry. 
• (5:25) If you are looking at only investments and ignoring the big picture, you are leaving money on the table. 
• (6:25) Doing things in isolation wastes a lot of time and creates unnecessary work for investors.
• (8:02)Elite athletes understand coaching elevates their game and it’s the same with finances.
• (9:10) Most people in the advisor industry are salesmen and don’t have financial expertise.
• (10:15) Conflicts of interest between advisor and clients is something to be wary of.
• (11:00) Competence is not rewarded in this industry. Many people start in the industry and “dial for dollars”. 
• (12:30) Who owns the firm you are working with and what incentives are they driven by?
• (13:35) Law firms with strong professional standards are employee owned and that is not the case with most firms in the financial advisory world.
• (15:20) Designations and Certifications are the minimums for those committed to doing what's right for the client. 
• (15:50) Simple questions like “are you held to the fiduciary standard?” and “are you investing your own money the same way you invest mine?” These are powerful questions to ask your advisor.
• (17:00) The benefits of working with a competent advisor is massive and have powerful studies that show as much as 3% of value added per year.   
• (18:00) If the person you’re talking to is a broker then just move on. You want to find an investment adviser. 
• (18:30) Brokercheck.com is how you can find out if they are a broker or investment adviser.
• (19:00) Next evaluate the person and firm for conflicts and advanced designations.
• (19:10) Then find out if you need only investment advice or financial planning. Looking for comprehensive planning is what people should look for at a minimum. 
• (19:30) If you are seeking multi-generational wealth then you have to start looking at multi-family offices.
• (20:15) Credentials in the form of experience and expertise should be measured and demanded.
• (21:28) Fully integrated advice with one after-tax return and one net worth is true optimization. Independence from conflicts of interest is vitally important to align incentives. And individualized and customized advice designed specifically to your vision of success creates a better experience and outcomes for clients.