Wealth Beyond Measure: October 2024

Written by Anne Bucciarelli, CFA

Explore what ultrahigh-net-worth families told us matters most. Click here for related insights.

As a wealth manager serving private clients for nearly 60 years, one of the most frequently asked questions we hear is: "What are others like me doing with their wealth?" Knowing that so many of our clients are eager to learn from each other, we conducted deep, one-on-one interviews with 40 ultra-high-net-worth (UHNW) Bernstein families.

Clients told us that the end of the day, while money may bring comfort and security, it can't replace the sense of community and connection that comes from sharing wealth-related concerns and joys with others. To help overcome the often-isolating nature of wealth, we let clients hear from their peers in their own words as they explore themes like:

·???????? preparing rising generations;

·???????? managing family business dynamics;

·???????? making decisions around family offices;

·???????? honing purpose and impact; and?

·???????? exploring feelings about wealth overall.??

During these conversations, we uncovered strong alignment on how successful families preserve and amplify shared prosperity. Five of the most compelling revelations from our interviews include:

Wealth is often isolating. About 75% of our interviewees felt they couldn’t confide their wealth concerns in family or friends. This helps explain their desire to learn from others.

Complexity isn’t always dictated by the size of your balance sheet. Billionaires dominated the top quartile in terms of complexity, but other quartiles had a similar number. Formal governance structures were driven by factors like running businesses or blending families, rather than size alone.

Conflict can sneak up from unexpected places. As families grow, the potential for discord multiplies. Yet just one-third of families integrate a conflict mitigation strategy into their governance structure.

This isn’t your parents’ family office. Successful families use a variety of structures to organize complex estate planning strategies and intergenerational dynamics. About 70% of the families in our study have some kind of family office, broadly defined.

Some have cracked the code when it comes to running a family business. Nearly two-thirds (60%) of the families we spoke to own an operating business. The most successful ones center their business and wealth around well-articulated purpose and values.

The Heart of the Matter

While no two perspectives on wealth are the same, one consistent theme emerged from the families we spoke to—that nothing else matters if family values, governance and relationships aren’t at the heart of a comprehensive family wealth plan. Starting with values and aligning investment plans with them increases the chances of success and shared purpose. Good governance ensures seamless wealth management and transfer, while community support from trusted advisors and conversations with others facing similar complexities can provide comfort and confidence. With the help of dedicated advisors, families can navigate the growing complexities of wealth and ensure it becomes a catalyst for stewardship and unity across generations.

Meet the Author

Anne Bucciarelli, CFA leads Bernstein’s Family Engagement Strategies, helping families explore the transfer of wealth-related values and knowledge. One of the things she finds most satisfying about her role is the incredible amount of trust families place in Bernstein as they open up about what's most important to them—and what makes them nervous.

Watch the video to learn more about how Wealth Beyond Measure came about.

Excerpted from Wealth Beyond Measure. Click here for related insights.