This Is the Advice I Give My Wealthiest Clients
In the realm of high finance, where fortunes are measured in billions and legacies span generations, the advice given to the ultra-wealthy isn't just about growing money—it's about wielding wealth as a powerful tool for lasting impact. As a trusted advisor to some of the world's most affluent individuals, I've developed strategies that go beyond mere wealth accumulation, focusing on generational preservation and societal influence.
The Three Pillars of Wealth Management for the Ultra-Rich
My guidance to the ultra-wealthy is built on three key strategies that set them apart from the merely affluent. These aren't your average financial tips; they're the cornerstones of generational wealth preservation and philanthropic power.
1. Complex Trust Agreements: The Art of Generational Control
"My belief is that it's not actually going to go to the hands of the lower generation. It's going to be mostly in trusts," I explain, addressing the much-talked-about wealth transfer of trillions of dollars. Complex trusts are the secret weapon of the ultra-wealthy, designed to ensure that their fortune isn't just passed down, but passed down with purpose.
These trusts are far more sophisticated than standard estate planning tools. They're meticulously crafted to align with the wealth creator's vision:
"They can continue on with the money that they have grown and generated over time to not just be passed down to a generation, to be blown or used in a way that does not fit the person who has created that money, that wealth."
"These complex trusts can be all over the board. Simply put, they are trusts designed to have your wealth continue to be built and distributed or put towards the causes that you want them to do after your death."
The versatility of these trusts is remarkable:
"Whether that is income for your kids, their grandkids, and so on."
"Whether that's money always filtering into charities, a continuation of a business, et cetera."
This level of control ensures that the wealth creator's legacy and values persist long after they're gone, shaping the financial landscape for generations to come.
2. Foundations: Living Legacies
While trusts secure the future, foundations shape the present. "Most wealthy people have some type of foundation," I reveal. It's not just about tax write-offs; it's about directing substantial resources towards causes they care about.
Foundations offer unparalleled advantages:
"To allow their money and dictate where their money goes for charity or for a specific cause."
"I believe the most wealthy people in the world... it's not about how much money they have. It's about their ability to use money as a tool for things that they want to do or give back towards."
By establishing a foundation, my wealthiest clients can:
Create a lasting impact on causes they're passionate about
Maintain control over their philanthropic efforts
Build a public legacy of giving
Engage family members in charitable work, instilling values of social responsibility
3. Full-Fledged Family Offices: The Ultimate Wealth Management Hub
For the ultra-wealthy, a family office is more than a luxury—it's a necessity. "It takes care of all of those things we just talked about... but it also takes all of the burden of everyday life things off of our clients," I explain.
The scope of services provided by a family office is comprehensive:
"From travel, bill pay, the concierge service of buying vehicles, buying assets, obviously handling where your investments are, all your insurance, literally anything that pops up in life, your family office is going to be there to take care of you."
This level of support allows my clients to focus on what truly matters:
"You can focus either on your foundation, your work, and most importantly, your family and creating memories and experiences, because those are truly what wealth is all about."
A family office provides:
Centralized wealth management
Coordinated legal and tax planning
Risk management and insurance oversight
Lifestyle management and personal concierge services
Family governance and education for future generations
Why This Advice Isn't for Everyone
The reason these strategies aren't recommended to those with lower net worth is simple: cost and necessity. "If I'm only worth a hundred thousand or less, or you name a number, something that we think is relatively low, complex trusts don't make sense," I clarify.
For those with more modest means, I adapt the advice:
Instead of complex trusts: "A more simpler trust does still" make sense for many individuals.
In place of foundations: "There's 501(c)(3) and non-profits that you can give to" for those who want to give back but don't have "hundreds of millions of dollars or tens of millions of dollars for a foundation."
Rather than a full family office: "Maybe you can't afford the full-fledged family office, which most people cannot, but you can get part of the family office, certain services in there that do abide to you that you can afford."
"It's not that I don't advise and tell them to do these three things," I conclude. "It's just, we reduce what services are reduced, what those can do for them, because they don't need it. They don't have those assets. Therefore, they don't need the full boat of everything that is going on."
In the world of wealth management, one size doesn't fit all. The ultra-wealthy require strategies as expansive as their fortunes, while others benefit from more tailored, focused approaches. The key is understanding not just how to grow wealth, but how to wield it effectively for generations to come, always adapting the strategy to the individual's unique financial situation and goals.