WALL STREET JOURNAL ARTICLE EXPLAINS THE NEED FOR LONG-TERM PLANNING

Even the wealthy need planning. One of the hardest things to do in wealth management is having to tell a wealthy family that they do not have enough to sustain their current lifestyle, and eventually will run out of money. The reality of their situation slowly sinks in, and the worst part is that it could have been prevented if they had taken their eyes off the short-term and looked out at the horizon.  

Too often clients fail to see beyond the next week or month or year, and how the decisions they are making now will impact their long-term future.  When creating a long-term wealth management plan, the first step is not only to identify and understand a family's objectives for their wealth but also must include long-term forecasts that can give them a firm understanding for how likely they are to achieve those objectives, whatever they may be. This analysis can be complicated - or emotionally painful - and therefore easy to avoid, but it is critical in the process because it shows how decisions made today can affect their net worth over the next 10, 20, 30, 40, or even 50 years.  

Some common questions we answer with a Horizon Analysis include:

Are we spending too much money?
Can we afford to buy a $10M vacation home?
Is now a good time to start a family foundation?
Can I afford to keep all of my family office staff?
Should we sell the family farm?
Is the investment in our cousin’s business a good idea?
This Wall Street Journal article explains in detail the critical importance of long-term planning in wealth management. To read the article, click here.

Do you know if you have enough? Give us a call to find out for sure.