20 April 2018
Investment
Wealth management starts at home
Far too often a failure by families to deal with important financial decisions as a unit hampers all members of the family from fully
understanding complicated - and sometimes not so complicated - money matters. This is why involving your spouse and children in finances,
and empowering them to make the right financial decisions on their own, is a worthwhile undertaking.
This family-focused approach starts, believes Preenay Sathu, Head of Advisory at RMB Private Bank, by encouraging your spouse and your children to be financially informed.
You could start by introducing your spouse to your Private Bank Advisor and inviting them to attend important annual reviews.
This level of exposure can help to ensure that your spouse is capable of managing your estate in the event that you cannot,
or at least be fully informed of the process and who will be managing it.
Including your spouse in wealth planning decisions also has implications for the structuring of your estate, where, for example, you save exponentially on estate duty by bequeathing most of your assets to your spouse. "Similarly," explains Sathu, "you would want to ensure that, where appropriate, there are beneficiaries nominated on your insurance policies so that your estate is able to save on executor's fees." These are discussions to be had as a family, to ensure that everyone understands why your estate is being structured the way it is. It is also vital that one's spouse and loved ones are fully aware of all assets and liabilities held as part of your total financial portfolio.
Central to this approach is your dedicated RMB Private Bank team. "Your Private Bank Advisor, working hand-in-hand with a team of experts, will advise not only you but will take a holistic family approach which considers the needs of the household.
Yes, it can be complicated when you bring another person into your financial decision making, admits Sathu, particularly when philosophies diverge, but there are distinct benefits to this approach in terms of planning, approach, execution and risk diversification. Men and women have different strengths and perspectives when it comes to money management, and your well-connected, confident and socially minded millennial children can bring a different level of understanding to any financial discussion. So creating a space for all parties to be heard is important.
For many parents learning to speak the same financial language as their millennial children is a challenge, so creating space for meaningful conversations about money, legacy, risk-taking behaviours, borrowing and the future is vital. In 2017 the Wells Fargo Millennial Study in the United States painted a worrying picture of a millennial generation that is anxious about finances, with 98% focusing on financial security as important but only 32% feeling confident in their financial status.
At the time of the report's release, Wells Fargo Asset Management CEO Kristi Mitchem told a media gathering that: "Millennials tend to put their money worries in a box, separate from the rest of their lives. They need to take them out of the box and deal with the things they can."
Over and above talking to not only millennials but all up-and-coming generations about money, parents can and should leverage off the range of RMB Private Bank expertise to put in place trusts, insurances and retirement planning strategies, as well as instilling healthy saving behaviour, to give children and young adults peace of mind in an uncertain world. Learning to talk about money and sharing and discussing the deep insights and pertinent information which is available to RMB Private Bank clients is just one way to build financial confidence.
This approach has veracity for spousal partnerships too, which is why RMB Private Bank's spousal offering has been tailored to foster solid relationships and deliver consistent and expert wealth investment advice. Says Sathu: "We believe that successful financial and investment planning should reflect the concerns and aspirations of both partners or spouses." This is why, through RMB Private Bank's spousal offering, your spouse or life partner can benefit from the same private banking experience that you enjoy.
Having the same team of trusted advisors on hand to guide you, your spouse and your children are immensely important when it comes to crafting specialist financial solutions for your family, says Sathu. "Our experts take the time to understand your family's wealth goals and that makes our approach unique, because we consider not only the individual, but the family as well." This extends by assisting to guide your children's prudent financial behaviours, being there to assist in opening their first FNBy account to offering advice on offshore investing, risk cover, study loans and - in later years - their own family and fiduciary considerations.
Including your spouse in wealth planning decisions also has implications for the structuring of your estate, where, for example, you save exponentially on estate duty by bequeathing most of your assets to your spouse. "Similarly," explains Sathu, "you would want to ensure that, where appropriate, there are beneficiaries nominated on your insurance policies so that your estate is able to save on executor's fees." These are discussions to be had as a family, to ensure that everyone understands why your estate is being structured the way it is. It is also vital that one's spouse and loved ones are fully aware of all assets and liabilities held as part of your total financial portfolio.
Central to this approach is your dedicated RMB Private Bank team. "Your Private Bank Advisor, working hand-in-hand with a team of experts, will advise not only you but will take a holistic family approach which considers the needs of the household.
Yes, it can be complicated when you bring another person into your financial decision making, admits Sathu, particularly when philosophies diverge, but there are distinct benefits to this approach in terms of planning, approach, execution and risk diversification. Men and women have different strengths and perspectives when it comes to money management, and your well-connected, confident and socially minded millennial children can bring a different level of understanding to any financial discussion. So creating a space for all parties to be heard is important.
For many parents learning to speak the same financial language as their millennial children is a challenge, so creating space for meaningful conversations about money, legacy, risk-taking behaviours, borrowing and the future is vital. In 2017 the Wells Fargo Millennial Study in the United States painted a worrying picture of a millennial generation that is anxious about finances, with 98% focusing on financial security as important but only 32% feeling confident in their financial status.
At the time of the report's release, Wells Fargo Asset Management CEO Kristi Mitchem told a media gathering that: "Millennials tend to put their money worries in a box, separate from the rest of their lives. They need to take them out of the box and deal with the things they can."
Over and above talking to not only millennials but all up-and-coming generations about money, parents can and should leverage off the range of RMB Private Bank expertise to put in place trusts, insurances and retirement planning strategies, as well as instilling healthy saving behaviour, to give children and young adults peace of mind in an uncertain world. Learning to talk about money and sharing and discussing the deep insights and pertinent information which is available to RMB Private Bank clients is just one way to build financial confidence.
This approach has veracity for spousal partnerships too, which is why RMB Private Bank's spousal offering has been tailored to foster solid relationships and deliver consistent and expert wealth investment advice. Says Sathu: "We believe that successful financial and investment planning should reflect the concerns and aspirations of both partners or spouses." This is why, through RMB Private Bank's spousal offering, your spouse or life partner can benefit from the same private banking experience that you enjoy.
Having the same team of trusted advisors on hand to guide you, your spouse and your children are immensely important when it comes to crafting specialist financial solutions for your family, says Sathu. "Our experts take the time to understand your family's wealth goals and that makes our approach unique, because we consider not only the individual, but the family as well." This extends by assisting to guide your children's prudent financial behaviours, being there to assist in opening their first FNBy account to offering advice on offshore investing, risk cover, study loans and - in later years - their own family and fiduciary considerations.