Managing the wealth of the rich

The management of wealth for ultra-rich families is a task that requires strategic planning and a deep understanding of individual family dynamics. Jodi Suchard, Advisory Partner at Citadel, sheds light on the evolving needs of high net worth families in today’s tough economic climate. According to Suchard, the ultimate need for these families is to have a chief financial officer who can oversee their entire financial landscape, investments, and family structures. At Citadel, they aim to become the central financial hub for these families, ensuring a holistic approach to wealth management. This evolving strategy involves meeting with the primary individuals involved in setting up financial structures and investments to tailor plans that align with the family's long-term goals. Suchard emphasizes the importance of understanding each family member's unique requirements, as every individual may have a different investment outcome and solution that best suits their needs. Creating a family constitution is key to ensuring alignment within the family regarding financial goals and objectives. This document acts as a business plan, outlining the main family member's wishes and aspirations for passing on wealth to future generations. Suchard highlights the significance of values like trust and open communication in managing family wealth effectively. Building trust with the main family member and facilitating transparent communication among family participants are essential aspects of the role. Open dialogue about current financial situations, relocation plans, and offshore investments is crucial in developing a tailored wealth management strategy. Legal counsel may be sought for complex jurisdictional matters, but the primary focus remains on understanding the family's financial landscape and designing a roadmap for the future. As the global market for wealth management surpasses $133 billion, South Africa's wealth management landscape has also seen shifts over the years. Many families are increasingly moving funds offshore to diversify and expand their financial portfolios. Citadel's longstanding philosophy of externalizing funds abroad aligns with the trend of South African families seeking greater diversification globally. While some families remain rooted in South Africa, the upcoming generations often reside abroad, prompting the restructuring of wealth to suit their international lifestyles. The proliferation of offshore movements is driven by the desire to secure funds in jurisdictions aligned with where family members reside. Despite the complexities of navigating a globally intricate financial environment, Citadel remains committed to providing tailored solutions for clients to ensure the seamless transition of wealth across generations. Suchard's insights offer a glimpse into the intricate world of managing the wealth of ultra-rich families and the strategic considerations involved in safeguarding and growing their assets.