99% of financial advisors prevent your family from building generational wealth.
Here's how to identify & hire the best:
Here's how to identify & hire the best:
All advisors are intermediaries.
They do not create wealth. They extract it for themselves from wealth already created.
But building generational wealth is not a solo project. Advisors will be needed.
Here’s how to make smart hiring decisions for your family's advising team.
They do not create wealth. They extract it for themselves from wealth already created.
But building generational wealth is not a solo project. Advisors will be needed.
Here’s how to make smart hiring decisions for your family's advising team.
First, we'll cover the 4 Ways Advisors Prevent Generational Wealth.
Then, I’ll share the 4 Steps To Hiring Advisors As Your Family’s CFO:
Let’s dive in: 4 Ways Advisors Prevent Generational Wealth...
Then, I’ll share the 4 Steps To Hiring Advisors As Your Family’s CFO:
Let’s dive in: 4 Ways Advisors Prevent Generational Wealth...
1. They Don’t Act In Your Best Interest
~90% of advisors are brokers. They fall under the "suitability standard."
Their recommendations don’t legally need to be in your best interest. Just “suitable”.
Would you see a doctor who didn't act in your best interest? No way.
~90% of advisors are brokers. They fall under the "suitability standard."
Their recommendations don’t legally need to be in your best interest. Just “suitable”.
Would you see a doctor who didn't act in your best interest? No way.
2. They Are Incompetent
Most advisors are salesman. They know nothing of tax, estate, and investment planning.
They hide behind vague titles of fake expertise: "Senior Advisor" or "Wealth Consultant".
Few possess advanced degrees, designations, & meaningful experience.
Most advisors are salesman. They know nothing of tax, estate, and investment planning.
They hide behind vague titles of fake expertise: "Senior Advisor" or "Wealth Consultant".
Few possess advanced degrees, designations, & meaningful experience.
3. They Aren’t Compensated For Your Success
Most advisors are paid transactionally. They sell you a product and get paid a commission.
They aren't incentivized to be consultative or give proactive, on-going advice.
You'll hear from them when they need a sale & that's it.
Most advisors are paid transactionally. They sell you a product and get paid a commission.
They aren't incentivized to be consultative or give proactive, on-going advice.
You'll hear from them when they need a sale & that's it.
4. They Don’t Understand Family Wealth
Most advisors sell to individuals, not families building generational wealth.
They know nothing about true family wealth.
They're incompetent advising in financial capital, let alone a family's intellectual, social & spiritual capital.
Most advisors sell to individuals, not families building generational wealth.
They know nothing about true family wealth.
They're incompetent advising in financial capital, let alone a family's intellectual, social & spiritual capital.
4 Steps To Smart Advisor Hiring:
1. Fiduciary As Non-Negotiable
A fiduciary is legally required to act in your best interest.
Never engage an advisor who isn't working for you 100% of the time.
Ask if they are a pure fiduciary or "dual-registered". You'll save loads of pain.
1. Fiduciary As Non-Negotiable
A fiduciary is legally required to act in your best interest.
Never engage an advisor who isn't working for you 100% of the time.
Ask if they are a pure fiduciary or "dual-registered". You'll save loads of pain.
2. Verify Competency With References
Clearly communicate your goals of generational family wealth to a potential advisor.
If they understand, then ask for references of current clients.
Ask all references how the advisor has added value to their generational wealth.
Clearly communicate your goals of generational family wealth to a potential advisor.
If they understand, then ask for references of current clients.
Ask all references how the advisor has added value to their generational wealth.
3. Align All Incentives
If references give clear & specific answers, it's time for buying questions.
How is the advisor paid?
If it's anything other than a % of assets under management or flat fee, they aren't incentivized for your success.
Demand that all incentives align.
If references give clear & specific answers, it's time for buying questions.
How is the advisor paid?
If it's anything other than a % of assets under management or flat fee, they aren't incentivized for your success.
Demand that all incentives align.
4. Look For Your “Majorodomo”
A "majordomo" is an ancient term for a person entrusted with the well-being of entire family.
You want an advisor with a majordomo spirit.
Are they proactive, competent, & consultative with high-integrity?
If so, hire them! They're a rare breed.
A "majordomo" is an ancient term for a person entrusted with the well-being of entire family.
You want an advisor with a majordomo spirit.
Are they proactive, competent, & consultative with high-integrity?
If so, hire them! They're a rare breed.
4 Ways Advisors Prevent Generational Wealth:
1. They Don’t Act In Your Best Interest
2. They Are Incompetent
3. They Aren’t Compensated For Your Success
4. They Don’t Understand Family Wealth
1. They Don’t Act In Your Best Interest
2. They Are Incompetent
3. They Aren’t Compensated For Your Success
4. They Don’t Understand Family Wealth
4 Steps To Hiring Advisors As Your Family’s CFO:
1. A Fiduciary Is Non-Negotiable
2. Verify Competency With References
3. Align The Incentives
4. Look For Your “Majorodomo”
1. A Fiduciary Is Non-Negotiable
2. Verify Competency With References
3. Align The Incentives
4. Look For Your “Majorodomo”
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