FORT LAUDERDALE, Fla., Dec. 21, 2023 - Sylvia Benito spoke on the topic of 'The Future of Family Governance' at the Super Summit event with the Family Office Club in Ft. Lauderdale in December. As the wealth management industry is transformed by the rise of automation and AI tools, the role of the human relationship has become more essential than ever, especially when it comes to generational wealth retention and family governance.
Over 70% of families lose their accumulated wealth over three generations, yet a skilled wealth manager can stack the odds in the family's favor. Most assume wealth is typically lost through poor estate planning and poor investment choices, yet the truth is that character, values, and ego are often at the heart of the accumulated losses.
Benito outlined four principles to empower wealth managers to guide families to sound decision-making. The first principle addresses conflict and resolution. It is essential for the family to establish a framework for working through disagreements and for the wealth manager to refer to and respect the framework. Simple agreements such as allowing a 24-hour pause, or establishing a system for written statements, can help keep emotions in check and high-stakes decisions well grounded.
Benito's second and third principles guide families to a sense of meaning and accomplishment. Authentic engagement in meaningful work develops both values and character. The experiences and skills honed through authentic acts of service and generosity cannot be quantified, and they are enormously useful for helping both individuals and families make sound, informed decisions.
Finally, Sylvia Benito acknowledged the role of a spiritual life and gratitude as core practices for preserving family wealth. These qualities help hone the attention and temper the ego in ways that enhance every single aspect of wealth creation and retention.
"We think managing money well is just a matter of numbers, but in my experience, it is the capacity for both love and forgiveness that defines success," Benito said.
These topics may seem outside of the traditional role of the wealth manager, yet the nature of this relationship is changing quickly. The future of wealth management and family governance is being transformed by the rise of AI and automation, and it is these very human skills of connection, character, and values that ensure a successful trajectory ahead.
Media Contact: Eaddy Sutton, info@sylviabenito.com
SOURCE Sylvia Benito
