The baby boomers have been blamed for a lot of things. These were the folks who protested Vietnam war in the 60s (many are now advocating for war), were into free love (alimony and pre-nups now), were anti-establishment (are now the establishment), and were against big money - now are in possession of serious money.
The baby boomers went from being beatnik rebels to lawyers, bankers, politicians, and business owners – and for the record, I am the very tail end of that generation. They channeled their considerable energy that had been directed toward the intransigence of the “establishment”, into a focus on their careers and reaped the rewards. In the process they built up substantial wealth, setting the stage for the largest inter-generational wealth transition in history. Serious money indeed!
Along the way, these boomers also chose to do things THEIR way. They weren’t content with the accepted norms or status quo. Their approach was disruption, much like the Harley Davidson bikes that many of them ride.
Today we are seeing the results of this focus and disruption. The boomers are wealthy, they are fit, they are living longer and healthier lives. In the process, they want to make their money work for them, as well as enjoying the fruits of their labours without the hassles of daily management of the minutiae – having their cake and eating it! Why not?
These folks are very astute and they are used to getting their way, even if it doesn’t exist at the moment. It’s a classic case of envisioning and executing.
So, when it comes to having and eating your cake, one would think that something has to give. Surely one cannot do it all within the 24 hours we are allotted. But think again.
In the domain of the extraordinarily wealthy of bygone times, there was always the key advisor behind the scenes. This typically invisible person was the one who acted and executed on behalf of the family and kept everything from the mundane to the sophisticated running like a well-oiled machine. This ranged from ensuring the mansion on the Riviera was ready for the weekend visit, to coordinating the flow of funds to the right accounts. His or her list of contacts was like an encyclopaedia of who’s who in specialized services.
In modern times, the mass market response to the fickle, but flush boomers was to recreate the key advisor in the form a centralized suite of services for these families, coining the term – family office. The concept was to bring all the services required by sophisticated and wealthy clients into a one-stop solution for all their needs. And voila – a cake with a fork.
These family offices would not only act for one wealthy family, but would often take on several and create a stable of clients to access their in-house suite of services. And so was conceived the multi-family office.
What tends to happen with a multi-family office though, is that the family ends up with a watered-down version of what they initially wanted - specialized services that focused on their spectrum of specific needs. Instead of getting a box of high-quality specialized tools, they got the multi-tool. It looked good, sounded good, but like a multi-tool you got some things you didn’t need, and the things you did need weren’t what you hoped for.
Specialists know their realm exceedingly well. They create their own domain from which to operate at maximum efficiency. They interact with other specialized teams that complement their area of specialty. They are rarely found in a watered-down team. They stand alone, and people seek them out.
So, what these wealthy families are really looking for is a team of specialists, a team of the best in their respective fields. The team will conform with the complexity of the family, expanding to include more complex situations, or contracting as the situation dictates. The family only pays for what they need, and the services are tailored, specifically focused on their requirements. The team leader, or quarterback, is often independent and enlists the services of these teams as required. He or she is the current incarnation of the invisible advisor of bygone times, and the team of specialists are his or her resources.
Over the years I have been a part of the evolution of wealth management and have connected with many of the best in their fields. I have developed my own team of experts across the realms of investment management, banking (personal and business), trusts, tax planning, succession planning, wills and estate planning, and much more, all while positioning myself as the team leader, or quarterback.
My team of specialists understands the complexities that come with family wealth, and more importantly, convey their knowledge in specialized advice and execute on behalf of the family. This very often means planning to ensure the family legacy endures through life’s transitions, and across generations.
Which leads us back to dealing with the boomers. This generation of mavericks is now contending with passing a portion of their considerable wealth to the next generation - no less mavericks themselves. Older generations rarely “get” the younger folks who follow them, and this transition is no different. The Gen 2 ethic, style and approach is entirely different, though Gen 2 has also shown its own capacity to envision and create ideas and wealth in its own form.
The time-honoured role of the invisible, or maybe not-so-invisible, advisor is to also think beyond the current needs. It is to anticipate and plan for eventualities. The role is to understand to the nature and responsibility of wealth, and to help educate the next generation to be prepared for it.
My task is to be there for the family, and very often my team and I become a part of the family. It’s what my team of specialists does. It’s who we are.
So when it comes time for the boomers to ride that Harley Hog into the sunset, they will know that they lived well, had their cake and left some in good care for the next generation.
If you, or someone you know, would like to learn more about the planning services that my team of specialists and I offer, please feel free to contact me.