Developing Integrated Wealth Advisors with Tom McCullough
Nov 29, 2023
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Tom McCullough, co-founder, chairman and CEO of Northwood Family Office, discusses the role of integrated wealth advisors and shares practical tips on finding the right advisor for wealthy families. He introduces the 'Four Markers' framework and highlights the importance of collaboration in developing infrastructure for integrated wealth advising.
Integrated wealth advisors focus on the holistic needs of wealthy families, providing objective and comprehensive guidance.
Successful integrated wealth advisors possess a broad set of skills and knowledge, prioritize client needs, and act as integrators for various professionals.
Deep dives
The Rise of Integrated Wealth Advisors
The podcast discusses the emergence of integrated wealth advisors as a separate professional discipline in the family wealth management industry. These advisors possess a broad set of skills and knowledge spanning various areas, including finance, investments, tax, estate planning, and family dynamics. Unlike traditional specialists, integrated advisors focus on the holistic needs of wealthy families, providing objective and comprehensive guidance. They act as central strategists, coordinating and integrating the expertise of various professionals to address the multifaceted needs and complex structures of affluent families.
The Markers of an Integrated Wealth Advisor
The podcast explores the characteristics and capabilities that define successful integrated wealth advisors. The speaker discusses four key markers of these advisors: mastery, mindset, method, and maturity. Mastery refers to the broad set of skills and knowledge that advisors acquire through education, experience, and professional designations. Integrated advisors are fluent in various areas of wealth management and possess strong interpersonal skills. The podcast emphasizes the importance of a mindset centered around client needs, rather than product sales, and the value of an integrated method that prioritizes goals-based planning, comprehensive strategies, and proactive collaboration. Lastly, the speaker emphasizes the maturity required in terms of humility, professionalism, and discretion.
Finding and Cultivating Integrated Wealth Advisors
The podcast offers insights on how families can identify and develop integrated wealth advisors. It suggests that creating a family office or hiring an external advisor may be more beneficial than relying on a family member for this role. The speaker encourages families to carefully consider their needs and seek advisors who specialize in integration. They also emphasize the importance of assessing advisors based on their competence, alignment with family values, and ability to act as an integrator. The podcast acknowledges that developing integrated advisors is a complex process that requires a blend of technical knowledge, personal development, and mentored learning. It also emphasizes the need for industry-wide efforts in training and professionalizing this emerging discipline.
The Significance of Family Capital
The podcast reflects on the importance and impact of family capital in the broader economy, society, and world. It highlights the staying power and heritage of family enterprises, which often outlast other business types. Family capital brings stability, a sense of heritage, and a long-term perspective, as these enterprises are not driven solely by quarterly earnings or market trends. The speaker emphasizes that family enterprises have a soul, which contributes to their resilience and positive influence on shareholders, communities, and employees. The podcast promotes the value of family capital in a fast-changing world, offering a sense of continuity, purpose, and deep-rooted connections.
Today, I have the pleasure of speaking with Tom McCullough, co-founder, chairman and CEO of Northwood Family Office. Tom is an adjunct professor and executive-in-residence at the University of Toronto’s Rotman School of Management, a member of the Editorial Board of the Journal of Wealth Management, and a member of the board and faculty of the UHNW Institute. He is an accomplished author and frequent speaker on issues relevant to families of wealth and their trusted advisors.
Tom recently published his influential article, The Rise of the Integrated Advisor, in the Journal of Wealth Management, and in this episode, he shares his views and work on the role of the “integrated wealth advisor” and the value it creates for UHNW clients. He talks about the challenges of identifying, hiring, and developing integrated wealth advisors, especially in an industry, where deep technical, quantitative expertise has traditionally been overvalued and qualitative skills and emotional intelligence have been undervalued. Tom offers practical tips for families who are looking to find or select an integrated wealth advisor and shares his thoughts on how to decide who is best positioned to play that role for the family: a family member, a family office employee, or an external advisor.
Tom introduces his framework of the “Four Markers” of integrated wealth advisors, which summarizes the personality traits and skills needed for one to be successful at this complex and important role for the family. He provides actionable advice to professionals who are interested in becoming integrated wealth advisors, including how they can prepare and equip themselves for this role, what formal educational programs or informal career pathways they can pursue to acquire the knowledge and hone the skills they will need to be able to play the integration and coordination role for their UHNW clients.
Don’t miss this deeply insightful conversation with one of the best recognized thinkers and practitioners in the Family Wealth Advice field.
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