Family Wealth Why: What is all this money actually good for?

The Wealth Equation: FW = R (HC + RC)

Your family wealth (FW), which over time is equal to your family legacy, is equal to the quality of your non-financial capital pools (your human capital (GC) and relational capital (RC)) as amplified by the effective deployment of your resources (R) (principally your time and money).

I hope you have asked yourself at some point in this Newsletter’s journey, “ok! I get that my family wealth, my definition of success, requires?utilizing?my resources well to build stronger people and relationships, so now what?!”

“Now what” is my focus professional this coming?year (2024).?

Goals?for the money naturally arise from your vision of family wealth success and?aligned tactics?should be deployed?to?accomplish?those goals.

The task therefore turns to family wealth?strategy.?

Most tactical advice is rightfully specific to key topics (investments, finances, tax?and insurance) and yet those specific topics are tricky to?optimize?if it is unclear how they fit within your goals.

Goal setting for families with generational wealth is not given enough focus.

Family wealth strategic questions: where is the world heading, where is?your?world heading, and what do you want your family to become in that world??Similar to?business strategy, these are tricky questions with unclear answers, yet thinking strategically is oh so valuable.

Family wealth strategy is where all great family wealth stewards?operate?from.??

Your family wealth goals will relate to three overarching topics:

1. well-being (principally,?physical?and mental health),
2. flourishing (principally, self-actualizing and taking meaningful action), and/or
3. impact (supporting others).

Here is my current working definition of family wealth strategy:?

Family wealth strategy aligns tactics with your ‘why’ (your family wealth goals) to ensure family wealth stewardship includes profound meaning, genuine affinity, and actualizes your ability to make a difference.?

Please let me know your thoughts on this definition…

While there are at least 50 tactical topic areas worth addressing within your family wealth strategy, none are as effective as they could be without clearly?identifying?your Why, then setting your goals and only then working on tactics.

Cheers to your calm, cool and collected wealth stewardship future!?

What is the value of effective family wealth strategy? I love the added meaning the wealth has for the family, I am astounded when families use their resources to build stronger people and relationships leading to more love, and I am impressed when families find their unique ways to make a difference but for me, the value of effective family wealth strategy:?reduced stress.

Stress is a killer!

Sure, it is also eustress, but stress derived from family wealth is typically counterproductive. The money (and time) spent on wealth stewardship should be, to as great an extent as possible rewarding. That is my mission!

(from Family Office Perspective #024, for more issues and to subscribe see AdamHoffman.net/perspective )

And for an engaging discussion on the topic and my introduction to the Genius Model as applied to Family Wealth Strategy, please see my podcast with Kirby Rosploch over at Tamarind Learning:

https://tamarindlearning.com/podcasts/the-why-of-your-family-wealth-strategy/