Prevent Social Media from Leading Thieves to Your Doorstep

John_SolomonJohn Solomon, Executive Vice President, Wealth Advisory

As the class divide widens, modesty has become increasingly important to the wealthy. A recent study indicates nearly nine out of every ten wealthy individuals (89%) believe in the concept of stealth wealth–the idea of keeping their level of wealth under the social radar.[1]

While there are plenty of statistics to support the stealth wealth movement as an aspirational lifestyle, many wealthy Americans unwittingly leave digital breadcrumbs that could reveal their riches.

If you want to fly under the radar, you and your children need to be cognizant of how the use of social media could put the family’s reputation, and even its physical security, at risk. After all, your children don’t have to use the hashtag #RichKidsofInstagram to paint a picture of their lifestyle. Simply by posting pictures, checking in at trendy locations, or tweeting family adventures could draw unwanted attention.

Consider taking these steps to protect your family’s privacy on social media:

  • Talk to your entire family about the importance of exercising discretion on the web. It’s helpful to identify and create guidelines for the appropriate and inappropriate uses of social for everyone, regardless of age.
  • Establish an alert with Google to notify you whenever your name or your children’s names are mentioned on the Web.
  • Follow and monitor your children’s social media accounts as well as your extended family’s accounts. Many extended family members may post pictures of their favorite Aunt and Uncle’s summer home, and a seemingly harmless caption could lead na’er-do-well’s to your door.
  • Have different user names/passwords for each account.
  • Regularly change and be more creative with passwords. If you are like most people, you use a password you can remember … like your dog’s name. Savvy hackers, however, troll social media sites for pictures of your pets and captions that reveal their names – which often provide fruitful password clues.

Now, managing your online presence is potentially time consuming that you neither have the time nor inclination to pursue; however, there is help. Services and applications exist to help you keep private information off the web, while also offering online reputation management services. The fact that there are so many resources available in social media protection and management is a testament to how important you must take it.

[1] New Elite: Inside the Minds of the Truly Wealthy, Jim Taylor, Doug Harrison and Stephen Kraus, p. 57

The Brinker Capital Wealth Advisory team delivers service and support to meet the unique wealth management needs of high-net-worth and ultra-high-net-worth investors, family offices, institutions, and endowments. The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change. Brinker Capital, Inc., a Registered Investment Advisor.

Safeguarding the Family Enterprise: Children and Wealth

Tom WilsonTom Wilson, Managing Director, Private Client Group &
Senior Investment Manager

A blog in a continuing series on the safeguarding of the family enterprise.

There is a Chinese proverb that goes, “Wealth does not pass three generations.”  This fits the notion that when significant wealth is created by the first generation of a family, the second generation gets to enjoy it, but the third generation, which was so far removed from the work ethic of the first generation, squanders it.

The conversation of wealth is often missed between parents and children.  For wealthy parents, discussing money with children can be a daunting task.  When is the best age to discuss the subject?  How much is too much information?  What if I want to give my money away to charity?  The stress surrounding these questions can often prevent these conversations from taking place.

Safguarding the Family EnterpriseWhile these questions, and others, are difficult to bring up, they are essential.  They will provide the context to determine the balance between providing enough money so that the children can pursue their dreams without a concern for their finances, and not providing so much of an inheritance that a feeling of entitlement or loss of self-purpose develops.  Warren Buffet said it best when he noted that he wanted to leave enough money for his heirs so they can do anything, but not so much money that they can do nothing.

A Wall Street Journal article on the subject gave several suggestions on how to speak with kids about generational wealth.  A favorite was the example of a pre-teen son who approached his mother and asked, “Are we rich?”  The mother replied, “Your father and I are. But you are not.”

A holistic approach to wealth management can go beyond asset allocation and financial planning.  Make sure you participate in the educating of children around family wealth.

Safeguarding the Family Enterprise: Security

WilsonTom Wilson, Managing Director, Private Client Group &
Senior Investment Manager

This is the first installment of a continuing series on the safeguarding of the family enterprise

During a recent trip in Chicago, I had the opportunity to listen to a speech by Arnette Heintze.  Arnette is a former Secret Service agent who has since created a security firm that caters to the needs of wealthy families.  His presentation included many examples of how his firm has been deployed to safeguard these families.  Some of the stories were very alarming.

Arnette’s intent was not to scare the audience, but rather to make the attendees aware that threats to wealthy families are real.  From harassment and name defamation, to extortion and blackmail, to the more personal security issues of stalking, threats, and kidnapping.  The wealthy family demographic has a variety of security challenges.

Many families contact security firms after a crisis has arisen.  This is unfortunate as preventative measures can have a meaningful reduction in the risks to families.

10.29.13_Wilson_SafguardingFamilyEnterprise_SecurityA holistic approach to wealth management can go beyond asset allocation and financial planning.  If you have not discussed the subject of security with your wealthy families, consider including this on the agenda in your next meeting.  After all, awareness is one of the best preventative measures.