Wealth. It’s What You Make It

25-Mar-2010

How do you define wealth? How do your clients? When you ask the question, actually get down to the details and closely examine the answers, you find wealth is like a snowflake. No two answers are ever the same. Even financial advisors who get paid for “wealth creation,” answer the question differently.  In a recent study, a majority of financial advisors defined wealth, generally speaking, as financial success. However, a good many talked about their family or how they spent their free time. Some thought it was a trick question.

What’s so tricky about wealth?

It alludes us. Regardless of where people stand on the pay scale, wealth is a few measures up. Whatever wealth is, we’d be happier with more it. If, as a professional, you’ve ever worked with really rich clients (we’re talking generation-loads-of-money rich clients) you may agree. More is not always better. After a certain middle-class comfort level is achieved, more money becomes an infinite pursuit. And while some never reach it, those who snatch it up often lose it just as fast. Think of the stories of lottery winners. When they hit the numbers and wealth rains down, too often their mega-huge dreams fall apart.

It’s not the sudden windfall of money that ruins people. It’s the expectations of what that money can do that destroys. In our country the dream of being rich dangles in front of us, the carrot that keeps us going when maybe we should slow down. Despite what everyone hopes, money can’t change the things that matter. Yes, money can buy the best medical insurance, but it can’t cure an inoperable tumor. Money can buy outrageous moments of excitement, but it can’t buy happiness.

Wealth is a tool

Certainly everyone wants the biggest and best toolbox. At a certain point, however, it doesn’t matter how many tools and trinkets you can jam inside; it’s what you build with your toolset that matters. As advisors we’re often called to architect those plans. And it’s not easy. Why? Because very few people know what they want to build in life. When you ask discerning questions, when you take the time to really help your clients clarify their visions – not monetary purchases “a motor boat,” but the underlying motivations “family time” – you begin to lay the groundwork for wealth. You can help your clients achieve their specific goals, but more importantly, you can help them see and appreciate their own riches and successes.