Wealth terminology guide aims to ‘counteract the BS’ for investors

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A pioneering consultant group in the wealth management industry launched a collective list of wealth terms that hope to reduce confusion and noise marketing.

Ultra High Net Worth, a non -profit organization that focuses on improving services for wealthy families and investors, which recently revealed.WealThesaurus– A list that includes more than 80 commonly used term and ill -treatment in the field of wealth management. The list, which will be updated and expanded constantly based on inputs of investors and wealthy consultants, aims to define the new language for wealth management and create acceptable criteria with customers.

“There are a lot of garbage conditions, and many marketing conditions are delivered,” said Jim Group, a content chair and curricula at the Ultra -Worth Worth Institute, and the founder of the Wealth Consulting Company. “The motivation for a lot of this is to confront some BS in the field.”

The need for reliable wealth follows Wikipedia the explosion of tricks, misconceptions and misleading noise in the work of the wealth of wealthy wealth.

In 2024, families are worth $ 5 million or more, over an estimated $ 49 trillion of financial wealth, more than half of the country, according to Cerulli Associas. As assets grow faster at the top of the wealth ladder, competition with wealthy investors and fierce family offices has grown between private banks, wire supporters, registered investment consultants, private stock companies and shops. With this growth, a barrage of the enlarged brand language came.

Terminology such as “family office services”, “comprehensive advice” and “assets subject to signal” are used randomly, making it difficult for customers to move in an industry that can not be penetrated to non -financial experts.

One of the most terrible violations is the term “multi -capacity office”. Traditionally, a multi -capacity office is one family office that has been expanded to serve a small number of external families or family members. Today, dozens of RIAS, boutique managers and even large consulting companies themselves are called multi -capacity offices, and they traded in exclusive and detailed services involved in the real family office.

“Some industrial monitors believe that the term has no fixed foundation and should never be used,” according to WealThesaurus’s entry into the Multifamily office. “Most professionals simply realize that the term has been an increasing estimate over the past thirty years, even if there is sufficient health or consistency in its use.”

To comply with the definition of wealthesaurus, multi -capacity offices need four specific features, from some customers (at least 10 complex multi -generational families with a average net value of at least $ 30 million) for specific services, providing services (without conflict of interest) and experience.

Another controversial term is “the origins subject to progress.” Companies often wander around asset terms to look more to manage customer money than they already do. Some companies use “AUM), while others say” AUA) and other assets under management (AUADMIN). “Customers rarely know the difference.

WealThesaurus gives very specific definitions to each of them, focusing on assets under counseling as they are companies that act as excitement (another term discussion). Customers say they should ask wealth managers specifically how to dismantle the assets subject to management and the assets subject to progress.

“Some companies include AUM in the AUA account without clarifying that they are doing it, while others report AUM and AUA separately,” according to The WealThesaurus. “To address this problem if these sums are evaluated, companies should be asked to explain how to calculate AUA.”

Grubman said the idea of WealThesaurus started with an unexpected problem at the Ultra High Net. The institute was founded in 2019 by Steve Brusstano, a long -term consultant for wealthy families and private business owners, who felt that customers need unbiased help in understanding and moving industry. The institute, which is the leaders of dozens of higher wealth management companies and consulting companies and specialists in its councils, aims to enhance best practices and standards in this industry.

Two years ago, the institute began developing what it calls the Integrated Family Wealth Management initiative, and given the comprehensive changes in the industry in recent years and how it can serve customers better. The group’s discussions hit a problem: they were often unable to agree on certain words.

“We will use a term and someone says,” a mother, in fact, I think it is this. “Another person will say,” I remember 15 years ago that he was defined in this way. ” It was amazing the differences that people had, even about words like the founding family. “

Grubman and Tara Kehoe, director of the Institute’s Library, began collecting internal radio definitions and collective fall with the group members. Over time, the list grew and decided to create a general version to better help customers and companies.

They thought about describing it as wealth, but the name was taken until they reached wealetesaurus and added a dinosaur amputation. Groupman said that the institute welcomes the proposed conditions and definitions of other wealth management experts and clients in the hope of expanding its use. Kiho said that the participation was high – as new users spend more than seven minutes on the recently launched site.

“They click from the semester to the range to the resource,” Kiho said.

The site does not aspire to be a comprehensive guide for all terms of wealth management. There is no explanation on Grats, fluctuations or SCINS from the real estate planning world, SMAS and PPVas in investment, or countless other products that make the heads of wealthy investors rotate. Groupman said that the institute does not want to include products or conditions that investors can search for easily on the web. For these types of products, weralthesaurus includes links to a variety of online investment guides, including Charles Schwab Investing Glossary, Investopedia and SEC Glossary.

“We searched for the terms that were important in this field, or as other definitions were full of terms,” Groupman said. “Going to the definition of assets subject to progress on the SEC website is a nightmare, for example. So we wanted to create this to customers.”

Since the advice work for wealthy families is increasingly exceeding industries – from the planning and real estate planners to accountants, real estate consultants, charitable business consultants, aviation and fleet experts, even constellation doctors and other specialists – weralthesaurus can also be a bridge between disciplines.

WealThesaurus has a specific term for “With High Net”, a phrase that is used all over the luxurious world and banking services with little context.

Wealthesaurus says the most common definition of “high net value” is a customer ranging from $ 5 million and $ 30 million. The “high value” usually means $ 30 million or more. He warned, however, that “with the large inflation and expansion of global wealth since 2000, more companies are taught to the highest UHNW to be $ 100 million.”