Family wealth planning – the Clarion Way

“No man is an island entire of itself; every man is a piece of the continent, a part of the main.”

– John Donne, poet, 1624

During the pandemic, the UK achieved its record number of millionaires ‐ ultra‐high net worth individuals (UHNWIs) as they are euphemistically called.

Here at Clarion, we see things differently. We don’t think wealthy individuals, we think families. We aim to create better lives for successful family people who value trusted advice.

Even when a client comes to us alone, it is almost impossible to treat them as an island. The decisions we make together will affect their family and their businesses.

We favour a cross‐generational approach to financial planning, working directly with you and your family to help you achieve your goals.

Cross‐generational wealth

Wealthy families are perceived to have few money worries. In reality, they too have a significant – if entirely different ‐ set of financial concerns.

They tend not to be so preoccupied with thoughts about how to pay for their child’s education, and are more likely to require expertise in succession planning for the family business, how to efficiently and generously support charities, and transferring wealth across multiple generations.

Indeed, it is an often‐quoted axiom that family wealth rarely lasts beyond the grandchildren. According to the Williams Group wealth consultancy, 70 percent of wealthy families lose their riches by the second generation, and 90 percent by the third.

To preserve a very high standard of living for the family lineage, intelligent financial planning decisions are needed to manage, protect, and grow family wealth.

The need for good financial management is the price to be paid for such financial comfort. The more money one has, the larger the investment portfolio and the increasing number of properties, the more work it takes to maintain and preserve those assets.

It’s good to talk

Talking finances within families is still seen as not quite the done thing. But it is central to the Clarion Way – delaying it could put your wealth at risk.

Modern families are more likely to be complex with divorces, second marriages, and stepchildren.

We encourage in‐depth discussions, to explore your aspirations in detail and help you to prioritise them in order of importance with our values and goals analysis.

Knowing the older generation’s financial wishes in advance will avoid devastating rows at some of the most difficult periods of people’s lives such as following a bereavement.

In the most affluent families, there can be an understandable desire to shield children from the excesses and to foster a strong work ethic and balanced approach to spending in adulthood.

However, the younger generation needs to understand the responsibilities resulting from the stewardship of the family fortune before it comes into their hands.

Introduce the scions of your family to your financial advisors so you can rest easy that if something were to happen to you, your family would be able to talk to someone they already know who understands all the details of your financial affairs and can help them through what would certainly be a very difficult period.

Clarion Wealth Planning are Chartered Financial Planners, specialising in true lifelong financial planning and investment management.

We develop, implement, and monitor bespoke long‐term plans for successful individuals and their families, specialising in business owners intending to exit or capitalise their business.

Above all, we give our clients the certainty that they can enjoy life to the full now as well as long into the future because they have clarity and confidence about their future wealth.

Experience true lifelong financial planning at our cost: email [email protected] to book a free initial consultation meeting, which is backed by our Clarion Guarantee. Following the production of your financial plan, you can walk away with no fees to pay in the unlikely event that you do not value our advice or services.