Over the years of managing other people’s money, personal finances, and family wealth. We have developed what is considered to be a useful set of principles for effective long-term wealth management in Seneca. They apply equally well whether you are managing a nest egg of one million or one billion. They apply regardless of timeframe or family complexity, and they apply whether your ambitions are aggressive or conservative. For anyone concerned about managing wealth, they provide a source of stability and a critical frame of reference.

  • Take charge and do it early
    • Managing wealth effectively requires that you take charge of the process early. Doing so even before you have many financial assets like stocks, bonds, and excess cash is advisable. If you have had financial assets for some time, there is no time like the present to start.
  • Align family and business interests around wealth-building goals and strategies
    • Creating the strong alignment of family members around common goals is critical to ensuring successful implementation of wealth management strategies and goals. It helps to reinforce common purposes and creates economies of scale. If a family is united around wealth management goals, it has collectively more power and focus in business, philanthropy, and even politics.
  • Create a culture of accountability
    • Individuals and families should measure financial performance on the basis of overall investment return. Most financial advisors are measured by the performance of individual products and by the profits they contribute their firms. It is also important to establish a timeline for regular review of the wealth strategist’s and advisor’s job performance.
  • Capitalize on your family’s combined resources
    • In families of any size, resources become distributed across the membership with the passage of time. The challenge is to figure out how and how much to reassemble these distributed resources so they can function more effectively. In order to mobilize, empathic but disciplined family leadership is key.
  • Delegate, empower, and respect independence
    • Supporting family members to identify and pursue challenges that they can call their own, away from the family’s immediate influence, encourages self-reliance and risk-taking. This is an excellent way to encourage the personal growth of young adults.
  • Diversify but focus
    • Diversification and focus combine the best of both worlds. With diversification, you achieve risk mitigation, and with focus comes the intensity that most people need to succeed in life. The principle of diversification applies in other ways as well. Most individuals have both taxable and tax-deferred investment portfolios.
  • Err on the side of simplicity when possible
    • Inevitably, advisors will present you with many fancy options for doing great things with your money. Some are terrific ideas, but it is recommended to most people that they stick to simple wealth management strategies and products. Even if you are wealthy, it might be best to peg most of your investments to simple, low-cost, and proven wealth management products.
  • Develop future family leaders with strong wealth management skills
    • It is important that no person in the next generation should come into the family business without spending at least a decade of success outside the family business, preferably in a related field.

At Black Harbor Wealth Management, we take the time to understand all of your needs, preferences, and goals. Our goal is to develop a strategy that will benefit you and your financial well-being. Call us today for your complimentary consultation.