Wealth 3.0: The Future of Family Wealth Advising

We recently added the book Wealth 3.0: The Future of Family Wealth Advising by James Grubman, Dennis Jaffe, and Kristin Keffeler to our library and wanted to share its existence with you. This insightful work offers impressive thought leadership and aligns closely with our holistic and integrated approach to wealth management.

The evolution of family wealth advising

Wealth 3.0 traces the history of family wealth advising through three distinct phases:

1. Wealth 1.0: Focused on wealth maximisation and tax mitigation with minimal family involvement.

2. Wealth 2.0: Introduced psychological insights into financial services, addressing the emotional and human aspects of wealth management.

3. Wealth 3.0: Emphasises a holistic, strengths-based approach that leverages positive psychology to empower families and foster resilience.

Paradigm shift in family wealth advising

The book advocates for a paradigm shift in family wealth advising, moving away from fear-based narratives and simplistic dichotomies. Instead, it promotes a strengths-based approach that encourages families to view their wealth as a tool for achieving personal and collective goals. Key elements of this approach include:

• Positive psychology: Focusing on personal strengths, purpose, and empowerment to foster an environment where each family member can thrive.

• Holistic integration: Addressing financial management, estate planning, philanthropy, risk management, governance, leadership development, family dynamics, and health and well-being.

• Diverse advisory teams: Reflecting the increasing diversity of wealthy families in terms of ethnicity, gender, cultural background, and family structure.

Why we recommend Wealth 3.0

For those interested in the evolving landscape of family wealth advising, Wealth 3.0 offers valuable insights and practical recommendations. The book challenges traditional wealth management practices and provides a thoughtful framework that recognises the importance of the non-financial dimensions of family wealth. By integrating positive psychology and adopting a holistic, client-centered approach, the authors advocate for a more balanced and empowering perspective on wealth management.

Our commitment to holistic wealth management

We thought it might be interesting for you to understand more about why we approach our work the way we do. Our commitment to a holistic and integrated approach stems from our belief that true wealth encompasses more than just financial assets. It includes the well-being, purpose, and resilience of each family member. By embracing the principles outlined in Wealth 3.0, we ensure that our clients receive a comprehensive and empowering wealth management experience that aligns with their personal and collective goals.

Key takeaways from Wealth 3.0

• Historical context: Wealth 3.0 provides a comprehensive overview of the field’s 50-year history, critiquing past practices and envisioning a promising future for family wealth advising.

• Positive psychology: The book emphasises leveraging personal strengths and fostering an environment where each family member can thrive.

• Holistic integration: It addresses various aspects of wealth management, including financial, estate, philanthropic, governance, and family dynamics.

• Diverse teams: Reflecting the increasing diversity of wealthy families, the book advocates for diverse advisory teams to better serve clients.

• Professionalisation: Wealth 3.0 proposes a more structured and rigorous approach to family wealth advising, emphasising education, experience, examination, and ethics.

We hope you find this book as insightful and aligned with forward-thinking wealth management practices as we do.

If you found this interesting and helpful, contact us at info@waughmcdonald.co.ke