Help for the mere millionaire

[Nords]

I occasionally start a blog post by sorting out a question on this board, but I'm not sure that this subject will ever be something that the average military servicemember cares to read. I've been sitting on this one for nearly a month, and some of the people described in these articles aren't just out of my league... they're darned near a different species.

Marie at FamilyMoneyValues.com has been blogging for the last 18 months about families who accumulate wealth and then want to learn the best ways to pass it down. She profiles self-made millionaires and inheritors, reviews books, and follows current events. As a member of the Yakezie network her posts occasionally appear in "carnivals" of personal-finance posts.

That's where I found the post "Where's the Help for the Mere Millionaire?"
http://blog.familymoneyvalues.com/2...s-where-is-the-help-for-the-mere-millionaire/

She makes an interesting point:

Where does the lowly millionaire with wealth in the 1 – 5 million dollar range go for help with wealth management, peer level interaction and education on wealth topics?

If you have 30 million or so to toss around, you can join the Institute for Private Investors.

They have an online forum, meet ups around the globe, special training programs and seminars just for you and your financial peers.

If you have a few billion or so, you can form your own family office. Then you could use the Family Wealth Alliance for consultations!

But, what if you are struggling along on an investible net worth of between one and five million? How do you meet your monetary peers, find out about valuable training/education programs for you and your next generation and hear about incredible investments you could be making?

Partial solutions to help the poor millionaires do exist.

She goes on to talk about some of them, and that led me over to The Inheritance Project: HOW TO BE A GOOD RICH PERSON: SLOWLY, AN INHERITOR FINDS HER WAY :: The Inheritance Project
The author, Barbara Blouin, interviews wealthy heirs to document their upbringing, their lifestyle, and their efforts to deal with their wealth.

One inheritor says:

During those years in graduate school, I was leading two lives—outwardly the educator life, and the more hidden philanthropic life. After I finished my doctorate, I knew I needed to decide which of those worlds I was really going to put my time and energy into. A lot of my fellow students were struggling financially, and I hid the reality of my circumstances from them. But I didn’t like living that way. So I decided to take a year off because I wanted to find out what I was doing what in terms of organizing in terms of organizing the wealthy, promoting philanthropy, and addressing the class divide.
I learned that many people of wealth are hidden, isolated, and troubled about their wealth. I wanted to help people in that frame of mind start to heal their wounds around wealth and get in touch with their power as part of an interconnected whole. I decided to start a consulting business, which I named Class Action. I describe myself as a “donor organizer and philanthropic advisor.” I focus on working with wealthy people here in the Pioneer Valley in Western Massachusetts. People with wealth often feel like they’re spread too thin. They give whenever someone asks them for a donation, so they’re being reactive instead of proactive. I take them through a series of questions to help them get clearer about how they can create boundaries, so that they can give more powerfully and with less doubt.

Family Money Values also has another post on "Three Tools of the Mega Rich":
Three Tools of the Mega Rich
The tools range from private banking to single-family offices:

The private banking team looks at the entire picture and helps determine how to allocate across multiple types of investments, countries and structures to manage the wealth. Citi's website (https://www.privatebank.citibank.com) describes it as “Wealth structuring shapes what a family's money does: how it provides protection; passes on values; minimizes taxes; enables control; fosters privacy and realizes a legacy.”
Wealth-management can include all aspects including estate-planning, tax-efficient planning across multiple countries, insurance planning, and philanthropic planning.

That post was inspirational. Now when someone asks "Whaddya DO all day?!?", your answer is: "I'm running a single family office."

But for those who feel that they need a little more support, it's good to know that those wild-eyed hard-partyin' big-swingin' experts at Wharton Executive Education are here to help:
Private Wealth Management Program for Investors – Executive Education in Finance at Wharton

Here's the one-week curriculum that you can sign up for in either Philadelphia or San Francisco. Act fast: the classes begin in April & August of 2013, and I'm pretty sure they'll fill up fast.

Through class lectures and interactive casework, participants will increase their depth of knowledge in key areas of wealth management.

The use of a "living" case study compels participants to come to terms with a wide range of investment issues that directly impact all families with significant wealth. Participants will call upon their own experiences, as well as knowledge gained during the week, to solve the problems presented. Learning is enhanced by the continual exchange among participants who have a common bond — that of the responsibility of significant wealth.

PRIVATE WEALTH MANAGEMENT SESSION TOPICS

History of Financial Markets
Asset Allocation
Modern Portfolio Theory
Evaluation of Investment Managers
Alternative Investments
Family Governance and Wealth Transfer
Real Estate
Decision Making
Subprime Crisis and Public Policy

Tuition for Philadelphia programs includes lodging and meals.

I nearly forgot to mention the fee: $9675 for a week's "education". (Yes, that's correct, nearly ten [Dr. Evil]THOUSAND dollars![/Dr. Evil] But I bet the cookies & coffee are really really yummy.

I suspect that this pricing could lead to an opportunity for entrepreneurial early retirees. Why, for just $5000 I could offer an intensive three-day curriculum on Oahu that covers the same subjects and includes a free surfing lesson!

I've barely skimmed the surface of the two blogs. They're worth browsing in more detail, if only to make you feel better about your own life...

 

[urn2bfree]

One of my colleagues has a son getting an education at Wharton for some high level executive training/degree: cost $80000 per year for a 2 year program. And he is paying for his son! The future salary has to be expected to be huge to make this worthwhile. I hope the son is planning to pay him back.

To answer the question, there are fee only advisors to help the poor millionaire.

 

[traineeinvestor]

I suspect that this pricing could lead to an opportunity for entrepreneurial early retirees. Why, for just $5000 I could offer an intensive three-day curriculum on Oahu that covers the same subjects and includes a free surfing lesson!

I'm in....so long as the $5,000 includes first class airtickets and five star accomodation.

Thanks for the links. Access to professional advice is becoming something of an issue for some of the less financially educated mass affluent - increases in regulations are leading banks to reduce the services which they are offering to people who have money to invest but who do not have enough to interest a private bank: Private banks cull less profitable clients - FT.com

FWIW, the article manages to omit the opportunities this trend will create for fee only financial advisers (who are actually pretty hard to come by in some parts of the world).

For reading, while it is targetted at people with a lot of money, Mark Haynes Daniell's Strategy for the Wealthy Family is useful for anyone wanting to pass down a meaningful legacy to future generations: Amazon.com: Strategy for the Wealthy Family: Seven Principles to Assure Riches to Riches Across Generations (9780470823101): Mark Haynes Daniell: Books

 

[FIREd]

Here's the one-week curriculum that you can sign up for in either Philadelphia or San Francisco. Act fast: the classes begin in April & August of 2013, and I'm pretty sure they'll fill up fast.

I nearly forgot to mention the fee: $9675 for a week's "education". (Yes, that's correct, nearly ten [Dr. Evil]THOUSAND dollars![/Dr. Evil] But I bet the cookies & coffee are really really yummy.

Hey, I walk in front of the Wharton building in San Francisco almost every day. Can I get a local resident discount like I get at the botanical garden?

 

[Semiretired2008]

Almost every broker office out there offers free classes along these lines. It almost has to be a sales pitch and I would be curious as to how it is leaned to the more wealthy. I do not have a first million and really do not care to have it, but I would be curious as to how they are pampered better than I am by an investment advisor (LOL)...

 

[foxfirev5]

A fool and his money are soon parted. It's amazing how much handholding some people need.

 

[nun]

Surely this forum is a good place to meet fellow millionaires. I had a difficult time taking some of the quotes in this thread seriously, if they are true some people have way messed up priorities.

 

[plex]

Went to a financial presentation at work...and it went fine until halfway through, I was expecting/hoping for him to get to the meat of the presentation by then, and he did, the meaty part for him, he started talking about how wonderful variable annuities and whole life are.

Somehow I get the feeling that every presentation magically seems to devolve into talking to those two subjects unless you pay them enough that they can come to each presentation in a new BMW, then maybe come to the next one in a new Jag, then something else the next time, etc.

 

[donheff]

The private banking team looks at the entire picture and helps determine how to allocate across multiple types of investments, countries and structures to manage the wealth. Citi's website (https://www.privatebank.citibank.com) describes it as “Wealth structuring shapes what a family's money does: how it provides protection; passes on values; minimizes taxes; enables control; fosters privacy and realizes a legacy.” Wealth-management can include all aspects including estate-planning, tax-efficient planning across multiple countries, insurance planning, and philanthropic planning.

DW and I are in CITIs private bank. They offer it to all partners in her firm. All we ever got out of it was personalized phone servicing for problems like missing checks and ordering Euros for trips. I wasn't aware they would also gladly straighten out the rest of our financial life. I will bet there are fees to be paid for those helpful services.

 

[eytonxav]

Where to go for help for mere millionaires? I thought the obvious answer would be this forum. Given the cost of admission, the advice is priceless.

 

[LOL!]

I didn't read any of the links, but it appears from nords' description that they are for the folks who feel guilty about their inherited wealth. Or perhaps for folks who are sentimental about dear ol' Mom's money. Those don't seem to be much of a problem around here.

 

[Danmar]

Not sure what your point is Nords? Derision of the very rich? Easy target I guess. It is a little surprising how uncomfortable most(not on this forum) people are with financial subjects though. I guess if we can criticize those who don't LBYM we can criticize those with big means.

 

[explanade]

Thought in general that ER doesn't necessarily mean leaving a legacy, that you fine tune it so well that the money isn't likely to run out but OTOH, not going to be left with a lot of excess either.

 

[Animorph]

Many of the most useful ideas for me have come from this forum. It would be nice if someone could package them into a cheap one day course, but I think that course would be different for each of us.

 

[omni550]

Many of the most useful ideas for me have come from this forum.

+1

I actually prefer to get them disbursed over time, so I can mull them over and take action, if needed.

It would be nice, though, to have a "Cliff's Notes" (most of us probably still remember what those were ) summary somewhere.

omni

 

[Nords]

Not sure what your point is Nords? Derision of the very rich? Easy target I guess. It is a little surprising how uncomfortable most(not on this forum) people are with financial subjects though. I guess if we can criticize those who don't LBYM we can criticize those with big means.

Not to worry, Danmar, I'm more interested in mocking the industry. Although if I have to explain the punchline, it deflates the joke.

I'm especially intrigued by the rich inheritor who gets paid by other rich inheritors for her to tell them what to do with (what's left of) their inheritance.

I'm also a bit bemused by a blogger who's looking for places to find "wealth management, peer level interaction and education on wealth topics", yet it never seems to have occurred to her that valuable resources might be found on consumer websites, discussion boards, and maybe even on... blogs.

Since you brought it up, my main criticism of those with big means is their inability to manage their finances. Although, of course, if they have big means then perhaps they don't need to know how to manage their finances and can choose to remain blissfully ignorant. Sort of like driving a car while having no idea how to operate one safely, let alone how its engine works.

 

[FIREd]

I was surprised to read that "mere Millionaires" were supposed to have specific needs when it comes to wealth management. I personally don't think that it is much different to manage a few hundred thousand dollars or a few million dollars. A willingness to get involved in one's finances and an occasional consultation with a good accountant or a lawyer is really all what is needed IMO.

 

[GrayHare]

I figure most who made their first million on their own have demonstrated a skill to both earn and manage the funds. Extending that skill to cover the second (or more) million is unlikely to be difficult for them. Conversely, people who did not have that learning experience seem more likely to need assistance if wealth is dropped upon them from inheritance, the lottery, etc.

 

[NW-Bound]

I suspect that people who inherit money would need a lot of hand holding. Same with widows who have not been involved in financial matters. I did not look at any of the links, but figure that there is a legitimate need for the service, and hope that the financial advisors render their help with integrity and fairness.

 

[unclemick]

Where to go for help for mere millionaires? I thought the obvious answer would be this forum. Given the cost of admission, the advice is priceless.

Yes we have moved beyond a mere - pssst Wellesley and you are good to go.

heh heh heh - I've moved beyond used Bimmer's and Audi's and looking for a steal in preowned Miata's not to mention cheating on my Diet with Bacon once in a while.

? Is Turkey bacon like the index fund of Bacon or is there something else out there?

 

[Hamlet]

It depends on how you earned that first million.

If you worked an upper middle class job for twenty years, lived below your means, and carefully invested the surplus, you are unlikely to have problems.

However, if you got your first million by incredible earning power, you are not neccesarily good at handling your finances.

The Millionaire Next Door noted that many doctors had serious problems managing their money. They had careers that translated into large earnings, but they were no more likely than the average person to be good at handling money. A good financial planner could really help some of them. A bad financial planner can retire off of a few of them.

I figure most who made their first million on their own have demonstrated a skill to both earn and manage the funds. Extending that skill to cover the second (or more) million is unlikely to be difficult for them. Conversely, people who did not have that learning experience seem more likely to need assistance if wealth is dropped upon them from inheritance, the lottery, etc.

 

[NW-Bound]

Speaking of bacon, my wife recently bought a package of precooked bacon from Costco. Tastes no different than the bacon you fry yourself, and saves a lot of time.

Eh, the above advantage may be a bad thing. It is so easy to overeat now. Yup. Whatever is good always has a bad side. Yet, whatever is bad may not have a good side at all. Such is life, isn't it?

 

[Danmar]

OK Nords. NowI get it. Long story.

 

[hlfo718]

I would use Bogleheads.org for any financial planning advice. There are tons of users that are also financial planners who do not have conflict of interest and is free.

 

[donheff]

Speaking of bacon, my wife recently bought a package of precooked bacon from Costco. Tastes no different than the bacon you fry yourself, and saves a lot of time.

Gotta disagree NW. I bought one of those packs thinking I could simplify my bacon and eggs. But I don't think it tastes as good as fresh cooked and it is definitely tougher. I may by another pack since it is a lot easier to microwave a few slices than to defrost a pack to remove a few and then cook them. but it isn't quite perfect yet.