Earned Money Breeds More Happiness, Study Says
The wealthy view earned money and inherited money differently and advisors need to know the difference, says a new study by Barclays.
The study, The Transfer of Trust:  Wealth and Succession in a Changing World, also indicates the wealthy have conflicting feelings about passing their wealth onto the next generation.

"Wealth management is becoming increasingly complex, including the regulatory landscape," said Christopher Johnson, director of wealth advisory for Barclays Wealth, Americas. "The shifting landscape and ideas make the financial advisory business Darwinian: Those advisors who fail to adapt will find themselves extinct."

Inherited wealth takes on the personality of the person who bequeathed it, the study shows, with families less likely to spend it and more likely to invest it conservatively.

Earned income on the other hand, is invested more aggressively and used more readily.

At the same time, a correlation exists between money and happiness, but earned income seems to make people happier, indicating "that actually earning wealth, rather than inheriting it, seems to boost financial happiness," the study's authors said.

Some 2,000 wealthy individuals in 20 countries, including 500 from the United States, were surveyed. High-net-worth is defined as those with at least $1.5 million in investable assets.

Thirty-six percent of survey respondents said they have experienced family disputes caused by their money and 21% believe wealth places an unnecessary burden on the next generation.

Some 23% said they do not trust the next generation to handle the money the way they would want and another 11% are ambivalent, but both groups said that they will give it to them anyway.

This conflicted attitude leads to trusts with specific stipulations-the type that usually require the assistance of advisors to set up, according to Barclays. More than two-thirds  (68%) of U.S. respondents said they require a great deal of professional advice when deciding on an inheritance plan for their children and stepchildren.

Of the high-net-worth individuals in the U.S., 66% say their values are similar to their parents and 82% are more likely to allocate assets to children whose values are most similar to their own.

The survey also indicated that the wealthy are conflicted about prenuptial agreements: 76% feel prenuptial agreements are important but only 11% actually have them.

"Passing on wealth, values and a legacy is at the heart of financial planning," Johnson said. "It is clear that with wealth comes an increasing complexity of choice, especially with respect to intergenerational transfer."

Wealthcare Capital Launches Life-Goal Monitoring System

Wealthcare Capital Management, a Richmond, Va.-based provider of financial management advisory services and systems, is introducing a goals-oriented wealth management system for financial advisors that is organized around the client's life goals.

The Unified Managed Household program includes monitoring of a client's progress toward his goals, including quarterly and forward-looking status reports.

Wealthcare says its system is different because, instead of measuring a client's success strictly against financial benchmarks, it takes into account the client's goals in life.

The Unified Managed Household program also provides optimized tax and trading systems, a client dashboard that shows advisors the goal-funding status of all clients, management and fee billing and marketing materials.

"The days of non-integrated managed account platforms that focus on managing isolated accounts without taking a client's life goals and other assets into consideration are numbered," said Leonard Reinhart, Wealthcare Capital Management board member.

-Karen DeMasters


On The Move

CBRE Global Investors has appointed Maurice Voskuilen and Jeroen Tomesen to global roles following CBRE's acquisition of ING's real estate investment management operations. Voskuilen has been named global chief financial officer/chief administrative officer. Tomesen has been named global head of human resources and will serve on CBRE's global executive committee and leadership team.

Gordian Wealth Advisors, a new independent wealth management firm located in San Francisco, has hired Sanctuary Wealth Services to provide business support and consulting services. Gordian, co-founded by Britt Doyle and Elliott Elbaz, specializes in developing customized solutions for wealth creators with complex financial needs.

BNY Mellon has promoted Andrew Tepper to wealth advisor, working with ultra-high-net-worth families and family offices. Previously a senior portfolio officer in the firm's Philadelphia region, Tepper was responsible for overseeing more than $600 million in discretionary and trust assets.

BNY Mellon has opened a wealth management office in Washington D.C., the latest development in BNY's efforts to add staff and establish offices in wealth markets both domestically and globally.

-Kathy Lynch