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    Filling the knowledge gap for the young affluent

    Wealthy baby boomers are retiring and the ‘Great Transfer’ of wealth is well underway. Yet, according to the 2012 U.S. Trust Insights on Wealth and Worth Survey, more than two-thirds of parents believe their children are not adequately prepared to handle wealth. This is not surprising because managing wealth isn’t generally taught by our education system and is often not discussed within the family.

    It is common for young adults of affluent families to start receiving money in their twenties as beneficiaries of estates and trusts and many are ill equipped to make sound financial decisions with the capital. Conversely, adult children of wealthy families may have misconceptions regarding entitlement to family wealth and/or the relationship any wealth transfer might have on their planned lifestyle.

    NextWave is Newport Private Wealth’s initiative to fill the knowledge gap for young adults to become better equipped at managing wealth through a series of discussions tailored specifically to this demographic and present these topics in a way that resonates with these young adults.  The following are concerns among young people that will be discussed in NextWave’s series of upcoming financial workshops. [read more >>]

    Wealth management is more than just financial

    intellectual personal financial balanceWealth management is a tag line used by many financial advisors to describe their services. It’s a familiar term but what does it actually mean and, more importantly, what should it mean?

    Wikipedia says “at the most general level, economists may define wealth as anything of value which captures both the subjective nature of the idea and the idea that it is not a fixed or static concept”.

    If one adopts the “anything of value” concept, one’s balance sheet as a measure of wealth should include more than just financial assets like investments, real estate and businesses. One’s intellectual assets like education, experience, skills, interests, passions and reputations are valuable and therefore should be part of the total wealth equation. Similarly, personal assets like values, relationships, community/civic involvement and physical, mental and spiritual health should also be captured.  Balancing these asset categories can be tricky as adding in one category can drain the assets of another (e.g., career vs. family, etc).
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    Increased wealth after age 70? Don’t bet on it.

    A recent article in the Financial Post concludes that spending by those who are retired declines with age and correspondingly wealth increases for those over 70 years of age. Our experience is quite the opposite among the higher net worth clients we have helped through retirement. In fact, I continually caution my clients to count on higher expenses in the future for the following reasons: [read more >>]