For families with significant resources, conversations about money and wealth are complex, highly confidential and sometimes difficult. It follows, then, that the relationship between advisor and client is personal and built on a foundation of trust, empathy, authenticity and experience. Moreover, this foundation is strengthened through time by engaging in purposeful conversations and an iterative discovery process.

From the outset, the advisor uses the information received to analyze the client’s cash flow needs and illuminate the individual’s ability to achieve lifestyle, legacy and philanthropic aspirations. This partnership between client and advisor evolves, as does the dialogue that enables the refinement of the client’s wealth-based goals. Thinking about what one wants to accomplish during a lifetime and beyond, and what family values one wants to instill in future generations, requires introspection, focus and flexibility, as circumstances change over time.

For the advisor, developing a successful wealth management strategy requires a quantitative (IQ) and qualitative (EQ) understanding of the client’s unique objectives:

IQ is the quantitative side of the equation. The advisor determines the client’s willingness, ability and need to take risk to meet financial goals, while integrating Glenmede’s planning, fiduciary and investment expertise. Strong IQ is required to thoughtfully steward financial capital.

EQ is the qualitative side. It is the emotional intelligence, or human capital, the advisor uses to discern and synthesize how each client’s philosophy and values impact the management of their wealth.

This blending of financial and human capital provides the perspective and data needed to develop a tailored wealth management strategy. Together, the client and advisor explore:

Lifestyle: How much is required to sustain the intended lifestyle, today and in the future?

Legacy: How much should heirs receive? How should they receive it — outright or in trust? When should they receive an inheritance?

Philanthropy: What is the client’s charitable intent, and how can it be realized? Is there a role for future generations?

Creating a wealth management strategy

Planning for the future necessitates creating a wealth management strategy that encompasses the lifestyle, legacy and philanthropic components at the individual and family level. It is a holistic approach, requiring input from both the advisor and client — the advisor evaluates the personal and financial considerations, and the client shares issues and concerns, whether on an individual, professional or family level. By understanding goals, priorities and obstacles, a multi-faceted strategic plan is crafted to address an individual’s and family’s distinct needs.

Adapting to life’s ebbs and flows

Life is unpredictable and ever-changing. An effective financial strategy must be agile to adapt to unexpected shifts in circumstances, economic fluctuations, modifications in tax laws or revisions in one’s wealth goals. Investors should expect their financial advisors to activate and sustain a discovery process that explores financial as well as personal goals, both short- and long-term. Understanding the “total investor” leads to strategies that address deeply personal issues and that are flexible to withstand and adapt to life’s unforeseen events.

Developing a comprehensive wealth strategy plan with an advisor is an opportunity to reflect on one’s life ambitions and family dynamics and take stock of personal, philanthropic and financial goals. It is a journey that can yield some deep — and often surprising — clarity about one’s ambitions, beliefs and legacy, and provides a blueprint for addressing multi-generational issues.