100-Year Financial Plan for Advisors

DEAR ADVISORS,

The United States of America will be turning 245 years old in a few weeks! My family has planned a Hamilton movie night on the weekend of July 4th and we’re excited to celebrate together! However, most established countries in the world are much older. Spain is over 550 years old, Russia is over 1,000 years old, and China has recorded history going back 5,000 years! Our youth as a nation impacts our perspective and timeline around financial planning.

Our focus has mostly been around financial independence. We value individualism and individual success over more than we do group or collaborative success. As we get older, we realize a deeper appreciation for those who came before, and make decisions that will improve the world for future generations. If we intentionally make decisions like that today, will our family and our country remain strong and united 5,000 years from now? I want the people in my family to support one another, and use common values as a guiding light to see us through major economic and social upheaval, like we’ve faced in the last year. That becomes our family identity, and our family’s 100-year financial plan.

Below are some keys to creating a 100-year financial plan for your family. It’s built around the business model of Purpose + People = Profit. These factors are interdependent, and this model applies to your family’s 100-year financial plan as well.

• Purpose

  • As a family, why are you here? What does your family stand for, or stand against? The family as a whole needs to co-create a vision and mission, and outline a strategic plan to achieve stated goals.

  • Each member of the family should identify their unique talents, and sculpt a life that is an authentic expression of their identity. When we express our talents, we live a meaningful, purposeful, inspired life. We each need our own, personal strategic plan to achieve our stated goals.

  • A 100-year family plan supports and develops each unique member of the family and their strategic plan. Similarly, each family member develops and supports the family’s vision, mission, and strategic plan. It’s easier and more effective to work together with clearly stated, aligned goals.

• People

  • For the family unit to be successful over 100+ years, and manifest the family vision, the individual family members must have certain skills and abilities. The family should support the family members by fostering 4 key skills: financial acumen, conflict resolution skills, communication skills. and leadership capabilities.

  • Regular family meetings are the most effective way to accomplish the family mission and following the strategic plan. It’s a dedicated time to discuss money as a family with the family’s financial planner, develop those 4 key skills mentioned above, and most importantly, learn about each other in order to help each other develop our individual identities and strategic plans.

  • During these meetings, each family member is equally respected, even if they’re not equal in experience or authority. This makes it possible to work together to overcome challenges and take advantage of opportunities.

• Profit

  • Your 100-year family financial plan benefits each of the family members by sharing resources. Financial resources is what typically comes to mind, but it’s beneficial to pool other things like social and human resources as well, as we each experience the various stages and episodes of life.

  • It is important never to steal the impetus to work and find meaning in life. The family needs to intentionally decide what they will and will NOT pay for. Clearly communicating what you may pay for (e.g., education, health care, a business start-up), versus what you will not, will aid you in carrying out your strategic plan for your family. This can help make future generations more successful without making them dependent.

  • True family wealth is an abundance of what your family most treasures. Money is not the goal. It can be one of the outcomes, and other outcomes include personal fulfillment, deeper relationships, and accomplishing the family vision and mission. If you want to go fast, go alone. If you want to go far, go together.

If you’re interested in learning more on this topic, you’ll want to check out this article by BGM Wealth Partners. The content for today’s blog post is largely from this Ted Talk by Chris Clarke, who is also the author of True Family Wealth: Love, Money, and an Inspired Life. Chris has been the CEO of a family office wealth management firm, and now often travels to present on this topic. One of the reasons this is so important to me is because it’s important to my grandad. He has championed this idea of family meetings and the 100-year financial plan for a long time, and I hope to carry on that vision. This 4th of July is the perfect time to consider your family’s future, and possibly get everyone together for a family meeting! I hope this helps give you a vision of how to secure the future of your family and your financial advisory firm!

Warm regards,

Brooklyn

P.S.

At Ellevate Advisors, we believe that advisors deserve to retire too. What does that look like for you, your family, and your business? Let’s figure it out together! Check out our services here, our new products page here, or get to know me on my bio here!