Family Matters

Not too long ago, a Truepoint client mentioned in passing some concerns he had about his parents’ current portfolio and financial plan. He didn’t have full visibility into their situation and his parents were somewhat reluctant to answer his questions. He didn’t want to meddle, but he worried about their ability to make good decisions and wasn’t sure he had full confidence in their advisor. It was a delicate situation, he said.

Thanks to changing demographics and longer life spans, more Americans find themselves in such situations. Not only looking after their parents’ health, many of our clients seem to be assuming the role of financial advisor to their elderly parents. In fact, the only family-related concern we hear more often is, “How can I help my children avoid poor investment decisions and financial mistakes?”

When we offered to share our expertise and services to help this client’s parents, he indicated that he didn’t believe his parents’ asset level would qualify them as clients of our firm. This is a common misconception. We assured him that his parents – as with the family members of all Truepoint clients – are able to take advantage of our family member service offering. That is, they can access our services without the usual minimum fees required of new clients.

Long-term Focus, Near-term Action

Multi-generational planning is at the very heart of what we do at Truepoint – for clients of both our Wealth Management and Family Office engagement levels. We believe we provide the most value when we’re employing a long-term view to manage and preserve wealth, not simply acting quarter to quarter. Truepoint’s generational planning approach is designed to holistically link effective wealth management strategies both up and down the family tree, for older and younger generations alike. We believe many of the same principles that work effectively for our clients can and should be applied to their parents and their children.

The goals behind multi-generational planning are straightforward: to simplify the family’s overall financial management, to promote sound estate planning and to minimize transfer-related taxation. It’s more than coordinating accounts (though of course that’s part of it). The focus is on ensuring that strategies for wealth preservation are maintained and applied collaboratively across generations. For families that haven’t shaped a clear strategy or plan of action, our specialists have the skills and knowledge to help you get there.

Viewed broadly, our clients’ goals are as different and diverse as they are as individuals. Therefore, we adapt our approach to the unique needs and goals of each of our clients. Indeed, our ability to tailor services and move nimbly may be the single most important factor in differentiating Truepoint from our peers.

Consistent with this service standard, we encourage our clients to consider whether the integration of Truepoint’s services for their loved ones may be beneficial for their family. In this way families can realize the many personal and financial benefits of collaboration among generations.