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Identifying Risks and Uncovering Opportunities

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Summary

Families of wealth have more than just investment risk to consider. For the wealth to survive for future generations, a family must consider estate planning, succession planning, tax implications, legislative changes, and often complex family dynamics issues, among other risks. Any of these could have a damaging effect on your wealth and put your long-term goals in jeopardy.

While you can rarely eliminate all risks, following a documented risk management process increases the opportunities for achieving multigenerational success. Taking a broad view of risks and working with professionals with different specialties in a coordinated effort can help a multigenerational family manage the risks they face.

This issue of the Abbot Downing newsletter focuses on the many types of risks and describes a risk management process to manage them. We also take a closer look at hot topics related to risk: identity theft and obtaining fiduciary protection.

KEY TAKEAWAYS

  • Working with professionals from disciplines of investment management, planning, family dynamics and education, and banking – in partnership with your other advisors – can help your family identify risks and create strategies to minimize them.    
  • Abbot Downing follows a disciplined risk management process: identify risks, prioritize/strategize, manage risks, measure success, and adapt to changes.    
  • Generally, there are three ways to manage risk: retain the risk, transfer the risk, or avoid the risk.    
  • Wealth almost always has an impact on individuals, couples, and families – in ways sometimes planned and sometimes unplanned; often positive and occasionally not. It is essential to manage the impact of wealth as well as the wealth itself.    

DISCLOSURES

Wells Fargo & Company and its affiliates do not provide legal advice. Please consult your legal and tax advisors to determine how this information may apply to your own situation.    

Wells Fargo & Company and its affiliates do not render tax or legal advice.

 

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