The abundance terminology guide is aimed at “counteraction to BS” for investors

The version of this article first appeared on the CNBC Inside Wealth newsletter with Robert Frank, a weekly investor and a high network. Specify To get future editions right in the mailbox.

A leading advisory group in the field of wealth management has launched a crowded list of wealth conditions, which hopes to reduce confusion and marketing excitement.

The Ultra High Net Worth Institute, a non -profit organization focused on improving services for wealthy families and investors recently submitted it “Wealth” – a list of more than 80 terms that are commonly used and abused in the business management business. The list that will be constantly updated and expanded on the basis of the contribution of wealthy investors and advisers aimed at determining a new wealth management language and creating accepted standards for communication with customers.

“There are many trash conditions, many marketing conditions are exposed,” said Jim Grubman, the chairman of the content and curriculum at the Ultra High Net Worth and Family Wealthy Consulting Institute. “Motivation in many of this is to counteract some BS in the field.”

The need for reliable wealth of Wikipedia stems from the explosion of receptions, false labels and misleading the excitement in the business management business.

In 2024, households worth $ 5 million and more controlled about $ 49 trillion, which is more than half of the country’s total number, according to Cerulli Associates. When assets grow rapidly at the top of the wealth ladder, competition for ultra-account investors and family offices has grown fiercely among private banks, wires, registered investment consultants, private firms and boutiques. With this growth came a flurry of the inflatable brand.

Terms such as “Family Office Services”, “Holistic Tips” and “Consultation Affairs” are used indiscriminately, making it more difficult than when -something for customers to navigate the industry, which is already impassable for non -financial experts.

One of the most outrageous violations is the term “apartment office”. Traditionally, a multi -section office is the only family office that expands to serve a small number of external families or family members. Today, dozens of Rias, boutique -managers and even large consultative firms call themselves multi -semisic offices, trading exclusivity and services that provide for a true family office.

“Some industry observers believe that this term does not have a set base and should never be used,” according to the WealtheSaurus record for an apartment office. “Most experts simply admit that this term has been growing in the last thirty years, even if it has insufficient validity or sequence in its use.”

To perform the definition of WealtheSaurus, multi -family offices need four specific attributes: from certain customers (at least 10 complex, multi -generation families with an average net price of at least $ 30) to certain services, providing services (without conflicts) and experience.

Another controversial term is “assets that are consulted”. Firms often rush around asset conditions to seem to be managing more customers than it really is. Some firms use “assets under the guidance (AUM)” and others say that “assets for advice (AUA)” and others advertise “assets under the administration (Auadmin).” Customers rarely know the difference.

Wealthesaurus provides very specific definitions of each, the focus of assets that are appropriate are firms that serve as trusted (another discussed term). It states that customers should ask the wealth executives specifically how they tear assets under the guidance and assets on the recommendation.

“Some firms include AUM into AUA, not making it clear what they do, and others report AUM and AUA separately,” Wealthesaurus reports. “To solve this problem, when these amounts are estimated, firms need to be asked to explain how they count their AUA.”

Grubman said the idea for Wealthesaurus began with an unexpected problem at the Ultra High Net Worth Institute. The Institute was founded in 2019 by Steve Prostana, a long -standing consultation for wealthy private businesses and owners who found that customers needed objective assistance in understanding and navigation in the industry. The Institute, which counts the leaders of dozens of leading rich management firms, consultative firms and specialists on their councils, is also aimed at promoting advanced practice and standards in the field.

Two years ago, the Institute began developing what he calls an integrated family wealth initiative, looking at extensive changes to the industry in recent years and how it can better serve customers. The group discussions got into the problem: they often could not agree on certain words.

“We would use the term, and someone would say” um, in fact I think it’s, “said Grubman.” And someone else would say, “I remember how 15 years ago it was definitely.” The differences that people had, even around the words as a family enterprise were strange. “

Grubman and Tara Keho, the library library manager, began to make internal dictionaries and crowded definitions with the members of the group. Over time, the list grew and they decided to create a public version to better help customers and firms.

They looked at this to call it a wealth, but the name was accepted, so they arrived in Wealthesaurus and added a dinosaur mascot. Grubman said the institute welcomes the proposed conditions and definitions of other experts and customers by rich management in the hope of expanding its use. Keho said the interaction was high – the new users were spending an average of seven minutes on a recently launched site.

“They press from the term to the term and really use the resource,” Keho said.

The site does not seek to become a comprehensive guidance on all conditions of rich management. On grata, neither on gears, nor distillation, nor in the real estate planning, or Smas and PPVAS in investment, or many other products that make the head of wealthy investors rotate. Grubman said the institute did not want to include products or terms that investors could easily look for online. For such products, the WealtheSaurus site includes links to different online guide, including Charles Schab, which has invested in dictionary and investment, and SEC SEEC.

“We were looking for terms that were important for the field, or where other definitions were so full of jargon,” Grubman said. “For example, a breakdown of the asset definition recommended on the SEC website is a nightmare. So we wanted to create this for customers.”

As a business for the advice of wealthy families is increasingly shrinking through industries – from trust and real estate planners to accountants, real estate advisers, charity consultants, aviation and fleet experts, as well as coneser and other specialists – Wealthesaurus can also become a bridge between disciplines.

The phrase WealtheSaurus even has a definite term for “ultra -high cost”.

The WealtheSaurus says that the most common definition of a “high pure value” is a customer, which has between $ 5 and $ 30. “Ultra High Clean Price” usually means $ 30 million or more. However, they warned that “with inflation and significant expansion of global wealth since 2000, more and more firms have been considering a modern threshold up to UHNW to $ 100 million.”