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Key Principles of Wealth Management

When it comes to your family’s wealth management, one must learn to tread carefully. It pays to learn from experienced wealth management consultants in 10601 who’ve spent years managing people’s money.

These experts apply a set of principles that provide them with a critical frame of reference and stability. Regardless of the complexities of your family dynamics or the time horizon, you’ll thank yourself for following their advice and applying the key principles they’ve established.

What Are the Key Principles of Wealth Management?

Set Your Long-Term Family and Financial Goals

It’s extremely important to educate yourself about your family’s existing assets, spending habits, expected income, and current estate plans. This will make it easier for you to structure and integrate long-term family and financial goals.

To ensure effective long-term wealth management, you and other members of your family should try to define your values as you develop a strategy for your wealth. Next, you have to set time horizons for your strategy. These time horizons can be a lifetime, a generation, or multiple generations.

Align Your Family and Business Interests Around Your Financial Goals and Strategies

If you want to make sure that your wealth management goals and strategies are successfully implemented, you have to align your family and business interests around them. Aside from defining your family’s identity, this will also effectively reinforce common purposes.

However, to create a strong alignment between the members of your family and your wealth management goals, you have to come up with a legitimate rationale for them to work together. At this point, you may want to enlist the help of a trusted wealth management professional.

They’re the experts at facilitating discussions among family members, mediating conflicts, driving consensus, and ensuring timely review of wealth management goals. These professionals are trained to resolve contentious issues while emphasizing the benefits of consensus, unanimity, and cooperation.

Cultivate a Culture of Accountability

Keep in mind that the process of wealth management is a business activity. For this reason, building a culture of accountability within the family will reinforce your set business goals and your performance expectation.

Unless accountability systems and performance metrics are put in place, you won’t be able to successfully implement your strategies. When family members are not performing, these tools will help depersonalize criticism.

Make the Most of Your Family’s Combined Resources

Regardless of the size of your family, its resources are distributed with the passage of time. To enhance the effectiveness of these distributed resources, they have to be reassembled.

To reverse the process of distribution, you have to capitalize on your family’s financial scale and the combined strengths of each of the members of your family. While you’re at it, you have to make the most out of their experience, personalities, skills, networks, and affiliations.


Keep in mind that in most cases, a family’s wealth is created through the success of a single business. Conversely, wealth can also be lost if you fail to apply the principle of diversification in your investments and the tax treatment of your assets.

Looking for the Best Wealth Management Consultants in 10601?

The team of experts at 1879 Advisors is here to deliver comprehensive wealth management strategies while considering potential risks and opportunities that can affect your family’s financial health. Schedule your appointment with us today!

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