How Financial Professionals Can Become Financially Intelligent Mentors: An Open Letter

Gallo, Jon J.
April 2005
Journal of Financial Planning;Apr2005, Vol. 18 Issue 4, p30
Academic Journal
This article discusses the role that financial professionals could play as financial mentors for their clients' children. The majority of affluent parents we have worked with are concerned about the possible adverse effects of their money on their children. Many find it difficult to talk to their kids about money. Other parents avoid talking about money because it invariably ends up in an argument. As a financial professional, one know how to talk about money and investing. Financial professionals can devote some their marketing budget to creating a program that could be offered a few times a year to clients' children. Each session probably should not last longer than an hour, and possibly no more than 30 minutes for young teenagers. The book Silver Spoon Kids: How Successful Parents Raise Responsible Children offers substantial information that one can use on the psychological and emotional aspects of family wealth. If clients are the parents of a 14- to 15-year-old dreaming of a car when he or she turns age 16, suggest that they put $10,000 or so in an investment account and tell the child that he or she could suggest investments. Whatever is in the account on his or her 16th birthday can be used to buy a car. As the child becomes a young adult, suggest that the client create a trust for the child's benefit and have the child serve as a co-trustee for investments for five years or so.


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