LIVING RICHLY SEIZING THE POTENTIAL OF INHERITED WEALTH

"It's important to understand that I'm a little unusual in my focus on conservation for inheritors. I suspect it's the conflict of interest (dare I say greed?) of commission-based investment advisors that creates unnecessary risk in the management of such portfolios. I'm not suggesting inheritors hoard their first $25 million under their mattress; that would be risky indeed! But I really think it's foolish to put all of a fortune this size into play at the most uncertain levels of this game.

Many investment advisors—or wealth managers—charge a percentage of assets under management, so there's an incentive for the assets to grow. The more they grow, the more the advisors make. I recommend finding an advisor who charges a flat fee, based on the complexity of your situation. That way there's less conflict of interest if you, say, consider paying off your mortgage or want to give money to charity (both of which would put fewer funds under management). In my mind, the goal for inheritors at this level isn't necessarily accumulating wealth but utilizing your wealth in ways that help you seize your potential and enrich your life.

Now there's a detail I'm glossing over here. It's extremely rare that an inheritor's assets are all in one bundle, with a crystal clear value and total liquidity like a briefcase full of cash. Wealth is more typically tied up in trust funds, equity ownership of companies, properties, and other non-liquid forms. You probably don't have 100 percent freedom to determine the investment strategy for all your money, but you do have a say, no matter how your advisors, trustees, or executors try to intimidate you. When you have confidence in your convictions, you can't be bullied; and so the job of your best advisors or wealth coach should be to support your education in the relevant details of wealth conservation. When they can build your knowledge and your confidence, you can bet they are helping you build your potential."