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  • Category: Children and Money

    Are your adult children financially astute?

    Adult children of wealthy families are not prepared to handle wealth. That is one of the most common concerns among Newport Private Wealth’s hundreds of wealthy clients. Wealthy baby boomers are moving into their golden years, planning for the succession of assets and realizing their adult children don’t have the necessary skills to effectively manage wealth.

    A U.S. Trust study last year confirmed that very few high net worth individuals believe their children would be mature enough to handle wealth before the age of 25 and more than a quarter think they won’t be ready before the age of 40. (1)

    Why is this so? Financial planning, risk vs. return, asset allocation, budgeting and tax minimization aren’t concepts that are taught in our schools and universities. Discussing the family’s wealth isn’t something most families raise at the dinner table. Yet, ironically, parents want to ensure their children, as heirs, (1) don’t squander inherited wealth; and (2) don’t lose sight of family values because of it. [read more >>]

    Talking turkey about money and values

    137087961 150x150 Talking turkey about money and valuesFor many families, the Thanksgiving holiday is a wonderful time for creating and cultivating traditions. Stories are told – and retold (as I’m often accused), memories are created and, intentionally or unintentionally, a set of values gets handed down like the family silverware.

    Part of our job as wealth managers is to help families make conscious choices that will shape their relationship with money over multi-generations. The arrival of Thanksgiving weekend inspired us to revisit a whitepaper we had written in 2012 with input from Dr. Julie A. Morton, of Conscious Legacy Coaching, entitled: Net worth. Self worth. What values will you pass on? A practical guide to conscious choices that will shape your family’s relationship with money. Click this link to download the booklet or watch the video.

    Something to talk about over turkey dinner?

    Baby checklist

    BabyChecklist 150x150 Baby checklistI’m not sure if it is my age, gender or maybe it’s just my network but it seems like everywhere I turn babies are a topic of discussion. Many new parents are eager to share itty-bitty details about parenthood but less inclined to discuss how their new little addition has impacted their financial lives.

    As part of our NextWave program of financial education for young adults in their 20s and 30s, we have put together a checklist outlining some important financial elements that parents, or even grandparents, may wish to consider. We hope that this guide will help simplify the financial process, allowing parents to focus on the day-to-day duties of caring for their new baby.

    Baby Steps to Financial Peace of Mind: A New Parents’ Guide can be downloaded from our website by clicking this link.

    Newport Private Wealth’s NextWave program is designed to help young adults navigate financial issues faced throughout their 20s and 30s.

    Our second NextWave event a success!

    iStock 000003567788 blog 150x150 Our second NextWave event a success! Recently we held the second event in our NextWave series, an educational and networking forum designed for adult children of affluent families. Our goal is to provide information on financial matters and help them to better manage their wealth – all in a fun, informal atmosphere. Despite battling beautiful patio weather and game one of the Toronto Maple Leafs vs. Boston Bruins playoff series, the event attracted a full house of young adults keen to discuss renting vs. buying a home.

    What’s the right move for you? [read more >>]

    Passing wealth on now, later, ever?

    Today’s Globe & Mail High Net Worth section featured Newport Private Wealth in a piece by journalist Paul Brent entitled Don’t let your money spoil the kids.

    It deals with the issues, desires, opportunities and complications of wealthy baby boomers assisting their offspring financially — a subject that’s near and dear to our hearts and on which several of our colleagues have blogged. You can also read David Lloyd’s post on Catalyst Funding and Kevin Dean’s Engaging the Next Generation.

    For high net worth families concerned about preparing the next generation for responsible wealth management, remember that we offer an educational program for young adults, NextWave. Contact Caitlin Lloyd or Kevin Dean to learn more.

    Engaging the next generation

    At the end of November we held our launch event for NextWave, Newport Private Wealth’s initiative for young adults to help them become better equipped at managing wealth.

    We had a tremendous turnout with over 40 young adults in attendance for an evening of networking and a brief introduction to the concept of NextWave, as well as introductory topics that will lead into our future events. Feedback from attendees was enthusiastic: “These are exactly the kinds of questions I have but I don’t know who to talk to” and “I was so happy that I actually understood what you were talking about because I feel totally underprepared when it comes to financials”.

    The feedback confirmed our belief that there is a strong desire to learn. Young adults want to take more responsibility, but with little in hard financial assets early in their careers they feel like they don’t have access to qualified individuals to discuss their concerns. [read more >>]

    Catalyst funding… for families?

    6981705 unpacking 150x150 Catalyst funding… for families?‘Catalyst funding’ is a notion commonly associated with business, health care and even the not-for-profit sector. It describes investments that are made to accelerate the development of an innovation or strategy. The theory being that with such funding, desired outcomes can be achieved faster or perhaps on a larger scale.

    At Newport Private Wealth, we’ve coined the term catalyst funding to describe various strategies  used by families to give their children a ‘leg up’ and as a means to educate them to better manage their finances. It’s a different way to think about how you provide financial support to your children – purposefully, strategically and objectives based.
    [read more >>]