“From shirtsleeves to shirtsleeves in three generations,” so the saying goes. This cautionary tale—where the grandchildren’s generation squanders the wealth built by their grandparents and passed down by their parents—has ominously hung over many families looking to continue their legacies.
The Wealth 3.0 movement is a shift in family wealth advisory away from fear-driven narratives like this to a more “positive, purposeful, and professional” orientation.1 At Avancier Legal, we are pioneering this approach, helping our clients make the most of “the creative possibilities their wealth and businesses can offer.”2
Beyond surviving to thriving
We care about preparing families for wealth, rather than just protecting them from it; empowering families and businesses’ legacies to thrive, not just survive. For us, success is not just the quantity of wealth but also by the quality of family’s holistic well-being. Turns out the two go hand-in-hand. A family that can communicate, collaborate, and make sound decisions together will be more likely to thrive, whatever the wealth situation is.
Before we dive in to explore how we can harness Wealth 3.0 for you, let’s first understand the journey that brought us here. Wealth 1.0 and 2.0 laid the groundwork for the transformative approach we adopt at Avancier Legal today.
Wealth 1.0: The Foundation
Wealth 1.0 was a straightforward approach to wealth management employed before the 1980s. Advisors tended to serve more as stockbrokers or private bankers, dealing mostly in stocks and bonds. The goal was simple: protect and grow wealth. Psychological and family dynamics were considered irrelevant, and the advisor-client relationship was purely transactional.
Wealth 2.0: The Expansion
From the 1980s to today, Wealth 2.0 expanded our understanding of wealth beyond just the financial. Influential advocates like Jay Hughes introduced the concept of intellectual, spiritual, social, and human capitals of the family.3 These non-financial aspects grew to be considered not only relevant, but also key determinants to the success of a family over generations. The fear-based shirtsleeves mentality began here, however, and through this, families were often advised that “entitlement, passivity, and self-centeredness will inevitably destroy what was so carefully built, without any real proof.”4
Wealth 3.0: The Future
Wealth 3.0, as articulated by James Grubman, Dennis T. Jaffe and Kristin Keffeler, takes the best parts of earlier incarnations, alongside embracing a positive, strengths-based approach and leaving the negativity back where it belongs. It’s also the beginning of the end of the ‘shirtsleeves’ narrative, a story that turned out to be just that, a story, after the empirical evidence behind it was debunked.5
We put relationships first
As Wealth 3.0 replaces stubborn myths and fearmongering with robust evidence and a balanced, supportive approach, it clearly is the way of the future. With one of our commitments being “We put relationships first,” we appreciate how relational and respectful the approach is. It also assumes our clients can help shape their future, not just passive victims to a generational curse. We are motivated by purpose, rather than fear, and we know this is the best motivation for our clients’ futures too.
Take this story of someone worried about their children squandering their wealth:
...The advisor gently asked, “What have you and your wife already done to teach your children good values about money?” In response, he admitted their parenting had emphasized solid responsibility, use of allowances to teach basic skills, and the power of giving. He proudly described how, every holiday season, they had their kids contribute some of their money to charitable causes they first discussed. After a moment’s reflection, [he] said with a smile, “you know, my kids are actually turning out okay. I guess we’ve done a better job than I thought.” 6
Asking the right questions
Why should we assume the worst despite all evidence to the contrary? At Avancier Legal, we pride ourselves in listening deeply like this, and practice a positive, strengths-based approach, asking discovery questions that explore potential. This does not mean, as Grubman says, “being blindly positive, ignoring real difficulties encountered in parenting, family functioning, personality development, or even wealth management.”7 Instead, we come alongside you and your family, providing the scaffolding and working with you to build capability where it is needed.
More than family office
Navigating the intricate dynamics and challenges of multi-generational wealth management is one of our specialties, and our experience and expertise means we can offer a range of family office services, including as in-house counsel. But while Wealth 3.0 is borne out of family wealth advisory and succession, many of the underlying principles explored here hold across our corporate, trustee, and fiduciary services, as well as our legal services and consulting and compliance offerings.
Positive, purposeful, and professional
With Avancier Legal, you can confidently navigate the future of your wealth, knowing that you are supported by trusted guides every step of the way. We are not just advisors; we are partners in your journey towards a legacy that lasts, one that reflects who you are and your vision. If this innovative approach resonates with you too, please get in touch, we’d love to talk about the potential for your future.
[1] James Grubman, Dennis T. Jaffe and Kristin Keffeler, “Wealth 3.0: From Fear to Engagement For Families and Advisors,” Trusts & Estates (February 2022)
[2] James Grubman et. al., “Wealth 3.0: From Fear to Engagement For Families and Advisors.”
[3] James E. Hughes, Jr., Family Wealth: Keeping it in the Family (Wiley 2004); Charles Collier, Wealth in Families (Third edition), (Harvard University 2012); Kelin Gersick, John Davis, Marion McCollom Hampton and Ivan Lansberg, Generation to Generation: Life Cycles of the Family Business (Harvard Business Review Press 1997).
[4] James Grubman et. al., “Wealth 3.0: From Fear to Engagement For Families and Advisors.”
[5] James Grubman, “There is no 70% rule: Improving outcome research in family wealth advising,” International Family Offices Journal, Vol. 6, June. pp. 33-38.
[6] James Grubman et. al., “Wealth 3.0: From Fear to Engagement For Families and Advisors.”
[7] James Grubman et. al., “Wealth 3.0: From Fear to Engagement For Families and Advisors.”
